If you’re unmarried, the law treats you very differently from a married couple or civil partners. That can come as a surprise in the worst circumstances.
A cohabitation agreement can fill that gap. It doesn’t mean your relationship is in trouble. Rather, it’s a way to agree on how you want to handle money, property, and belongings. This guide explains what a cohabitation agreement does and who should consider one, so you can decide whether it’s right for you.
The “Common Law Marriage” Myth
There is no such thing as “common law marriage” in England and Wales. This is true regardless of how long you have lived together, whether you share a mortgage, or whether you have children.
What You Can And Can’t Claim If You Separate
- Property: there is no automatic right to a share of your partner’s home or savings. Claims usually depend on trusts law, which looks at who owns what, what you each intended and what you each contributed. This can include deposits, mortgage payments and renovations.
- Children: a parent can apply for financial support for a child under Schedule 1 of the Children Act 1989. This is for the child’s needs, not for the other partner’s.
- Maintenance and pensions: there is no equivalent of spousal maintenance, and you cannot claim your partner’s pension.
- If your partner dies: you have no automatic right to inherit without a will. You may be able to ask the court for provision.
What Is a Cohabitation Agreement?
A cohabitation agreement is a legal document that sets out how you and your partner will handle your finances, property and belongings. It covers your time living together and what happens if you separate. The agreement records what you have agreed so you aren’t left relying on assumptions.
Should You Have a Cohabitation Agreement?
An agreement can make sense for almost any unmarried couple. It’s particularly worth considering if:
- You are buying a property together without being married
- One of you is moving into a home the other already owns
- One or both of you have children from a previous relationship
- One of you has significantly more assets, savings or income
- One of you has given up work or reduced your working hours to care for children
- Either of you is contributing to a family member’s property or business
- You have been together for a long time, and your finances are closely tied
What a Cohabitation Agreement Can Cover
Every cohabitation agreement is unique and tailored to the couple. Common topics include:
Property and contributions, such as who owns the home, in what shares, and how deposits, mortgage payments and renovations are recognised.
Day-to-day money. How bills are split, and how savings and joint accounts are handled.
Belongings, pets and debts. Who keeps what, who looks after the pet, and who is responsible for any debts.
What happens if you separate, whether the home is sold or one of you buys the other out.
It’s worth knowing what an agreement can’t cover. The court makes decisions about arrangements for children in the child’s best interest. For this reason, an agreement can’t override them.
Are Cohabitation Agreements Legally Binding?
A cohabitation agreement isn’t automatically binding. But courts will generally treat a properly prepared agreement as an ordinary contract and give it weight. How much weight depends on how it was made and whether it’s still fair and clear.
A few things can make an agreement stronger:
- Each of you has an honest picture of your assets, income and debts
- Both of you take advice from your own solicitor
- You both sign freely with time to think
- The agreement is signed correctly, often as a deed
- You update it when your circumstances change
How Can Cohabitation Solicitors Assist With Agreements?
You can write an agreement yourselves, but a poorly drafted agreement might not do what you expect when it matters most. A solicitor will explain your options, ask about your property finances and plans, and draft an agreement that reflects what you want in terms less likely to be disputed later.
Each partner should have their own solicitor. This helps ensure you both understand what you’re agreeing to. It also strengthens the agreement if it’s later challenged.
Buying a home, having a child, changing jobs or even inheriting money can change what is considered fair. A solicitor can review your cohabitation agreement at those points so it stays up to date as your life changes.
How the Process Works & What To Expect
- The initial conversation. You explain your situation and what you want the cohabitation agreement to achieve.
- Financial disclosure. Each of you shares details of your financial situation. This includes assets, income and debts.
- Drafting. Your solicitor prepares a draft that reflects what you have discussed.
- Independent advice. Each of you seeks separate advice on the draft, and you agree on any changes.
- Signing. You sign the agreement, and each of you keeps a copy.
- Review. You revisit the agreement when your circumstances change.
Timescales depend on how complex your finances are and how quickly you agree on the terms.
If you live with your partner and want to understand your options, our expert team can help you draft or review a cohabitation agreement tailored to your circumstances.
Get in touch with our Newport office on 01633 244233 or our Cardiff office on 02922 676818. Alternatively, you can contact us online.
