What is a cohabitation agreement?

If you live with your partner, or you are planning on living together, you can enter into a cohabitation agreement (sometimes called a living together agreement). This can set out the ownership of assets you already have (including property), what your financial responsibilities will be towards each other and how savings and jointly owned assets will be distributed should you split up.

Is a cohabitation agreement legally binding?

A cohabitation agreement is a legal document, enforceable by the court if it is properly executed and providing you have both been honest about your finances and each obtained separate legal advice upon its terms.

How do I make a cohabitation agreement?

Specialist legal advice will help ensure your agreement covers everything you need it to cover and that it is valid. The cost of getting an agreement properly drawn up far outweighs the cost of dealing with a dispute.

Can I write my own cohabitation agreement?

Whilst you can access examples and templates online, the agreement should be specific to your circumstances. Generic templates may miss things outr or include things you simply don’t need. For the agreement to be valid, it’s important that you both seek independent legal advice to make sure neither of you are in any doubt as to what the agreement covers and ensure there are no mistakes in the document.

Can a cohabitation agreement be changed or updated?

Yes, a cohabitation agreement can be changed once it’s been created. It is good to keep it updated as your relationship changes or if anything significant happens in your relationship. For example: The birth of children One of you becomes seriously ill or disabled One of you is made redundant or your finances change significantly One of you receives a large inheritance You plan on getting married or entering into a civil partnership

What is the difference between a prenuptial (pre-civil partnership) agreement and a cohabitation agreement?

If you and your partner are living together and have no intention of getting married or entering into a civil partnership anytime soon, then this is when you would typically enter into a cohabitation agreement. However, if you are planning to do either soon or you are engaged or actively planning your wedding or civil partnership, you should enter into a prenuptial or pre-civil partnership (or pre-registration) agreement. There are specific timeframes in which a prenuptial agreement can be made and therefore you should act sooner rather than later. There are a few key differences: A cohabitation agreement tends to be a more flexible document. It sets out what happens to your assets if your relationship breaks down, including who owns what and in what proportion. A prenuptial, or pre-civil partnership agreement, is entered into before a marriage or civil partnership takes place. You must be planning it and know when it is going to take place. A pre-nup sets out what will happen to your finances if the marriage was to end in divorce and is often used when the couple want to do something different to what they would be legally entitled for example, to protect assets owned prior to the marriage.

What happens to a cohabitation agreement if one of us dies?

If you’re worried about what will happen if you or your partner dies while you are cohabiting, it’s important that you outline your wishes in your cohabitation agreement and seek advice about a will.

My partner is moving in with me on my farm. How do I protect the farm?

Cases involving farms can be some of the most challenging to deal with. Often home life and work life is closely intertwined. Farming businesses can often be very complex. If you own farmland and you live with your partner, it is crucial that you think about what would happen if your relationship were to breakdown so that you can take steps to protect your assets. Specialist legal advice will ensure the right steps are taken.

What if my life partner is also my business partner? Can a cohabitation agreement help us?

The starting point is for you both to discuss and then agree the key issues which could affect your business and anticipate problems before they arise. Whatever you agree should then be properly recorded for future reference, either in a shareholders’ or a partnership agreement depending on your business structure. This could cover how the business will be managed on a day-to-day basis, how key decisions will be made, how you are each remunerated, the future of your business including any succession planning and what will happen if your relationship were to end.

We have just moved in together. Who pays for what?

Who pays for what may depend on who owns the property and who can afford to pay for any outgoings. Ideally, you should discuss this and agree who will pay for what from the outset and include those decisions in a cohabitation or living together agreement. You are legally responsible for any bills, contracts, loans and credit cards taken out in your sole name, even if they were taken out for the benefit of the family. If your name is on the mortgage or the utility bills, the providers will expect you to pay the bills and not your partner. If one of you already owns the property and the bills have been set up before the other moves in, it is still very important to discuss what each of you will pay and the implications this will have. This should be included in your cohabitation agreement.

We own our property as tenants in common. Can we agree something else in our cohabitation agreement?

As tenants in common, you each own a specific share of your property. When one of you dies, the share of the property owned by that person does not go automatically to the other, it goes to whoever it was left to according to the will or passes under the intestacy rules if there isn’t a will . If you want to change how you own your property you will need to enter into a new declaration of trust.

Why should I have a cohabitation agreement?

Many couples assume that if they are living together “common law marriage” protects them and they will be treated the same as married couples. However, this is a myth. Couples who live together do not have the same legal rights as married couples or those in a civil partnership, and in fact have few legal rights if a relationship breaks down. A cohabitation agreement can provide certainty by making clear what your financial commitments are, avoiding misunderstandings, avoiding disagreements if you split up and providing clear evidence of what you both intended if you did have to take any dispute to court.

Does a cohabitation agreement have to be signed?

The following are essential for a valid and binding cohabitation agreement: You should both enter into the agreement freely and voluntarily (after taking independent legal advice) The agreement should be set out in the form of a deed Each of you must sign the document Updating it in light of significant changes of circumstance

My partner and I have split up and are arguing over our finances. Will the court uphold our cohabitation agreement?

As long as both of you were upfront and honest about your finances, and the agreement was validly entered into, your agreement should be legally binding. However, a court may decide not to uphold an agreement if they consider it to be unfair to either of you or it does not take into account any change in circumstances for example if you have had children since the agreement was made. Involving a specialist cohabitation lawyer in the first place can help prevent these problems.

Cohabitation agreements

Unmarried couples in England and Wales have few legal rights if they separate. A cohabitation agreement helps people in committed relationships protect their interests if the relationship ends.

Despite popular belief, “common law marriage” does not exist and hasn’t for centuries. Cohabitation agreements are legally binding documents that couples living together (but who are not married or in a civil partnership) can use to make clear how they intend to manage their finances whilst they live together and what will happen if their relationship breaks down. A written agreement can prevent a great deal of unpleasantness, stress and cost by avoiding arguments in the first place.

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What do you need to know

A cohabitation agreement (also known as a relationship agreement or a living together agreement) records the agreed arrangements for people who live together (it doesn’t always have to be a couple in a relationship!). They are legally binding if they are entered into properly so specialist legal advice is a must. With the number of couples now cohabiting in the UK rising, cohabitation agreements are becoming increasingly popular.

Cohabitation agreements typically set out how you intend to manage your finances whilst you live together and provide certainty about how you will divide your finances if you were to split-up. A written agreement can prevent a great deal of emotional and financial cost and avoids arguments in the first place. However, cohabitation agreements are very flexible and can cover everything from who pays the rent to who does the household chores!

Although each cohabitation agreement is different, there are a few key points you should always think about.

Property owned before moving in together — iIf one of you already owns property, a cohabitation agreement can be used to protect that property and prevent the other from having a claim over it in the future. However, if the non-owner does make a financial contribution to the property, they could have a claim so think about this carefully.
Property bought while living together — if you buy a house together but only one of you is named as the owner, you should address this in your agreement. If you are joint owners, you are both legally entitled to stay in it if you break up. You will need to think about what would happen then and whether you would want to sell the property or for one of you to buy the other out.
Household bills — if you and your partner are not joint owners of your home, or one of you contributes more financially than the other, you need to think through the implications of this.
Inheritance and wills — it’s important to remember that if you are not married or in a civil partnership, you will not automatically inherit each other’s estates if one of you dies. If you want to leave anything to your partner, you will need to have a will and keep it up to date.
Independent legal advice — you will both need to have independent legal advice to ensure that your agreement is binding and that there is no doubt as to what you are both agreeing to. By doing this, the court is much more likely to to put it into effect if you were to break up and needed the court’s help to resolve a dispute. You will also need to be upfront and honest about your personal finances.

Frequently Asked Questions

What is a cohabitation agreement?

If you live with your partner, or you are planning on living together, you can enter into a cohabitation agreement (sometimes called a living together agreement). This can set out the ownership of assets you already have (including property), what your financial responsibilities will be towards each other and how savings and jointly owned assets will be distributed should you split up.
Is a cohabitation agreement legally binding?

A cohabitation agreement is a legal document, enforceable by the court if it is properly executed and providing you have both been honest about your finances and each obtained separate legal advice upon its terms.
How do I make a cohabitation agreement?

Specialist legal advice will help ensure your agreement covers everything you need it to cover and that it is valid. The cost of getting an agreement properly drawn up far outweighs the cost of dealing with a dispute.
Can I write my own cohabitation agreement?

Whilst you can access examples and templates online, the agreement should be specific to your circumstances. Generic templates may miss things outr or include things you simply don’t need. For the agreement to be valid, it’s important that you both seek independent legal advice to make sure neither of you are in any doubt as to what the agreement covers and ensure there are no mistakes in the document.
Can a cohabitation agreement be changed or updated?
Yes, a cohabitation agreement can be changed once it’s been created. It is good to keep it updated as your relationship changes or if anything significant happens in your relationship. For example:
- The birth of children
- One of you becomes seriously ill or disabled
- One of you is made redundant or your finances change significantly
- One of you receives a large inheritance
- You plan on getting married or entering into a civil partnership
What is the difference between a prenuptial (pre-civil partnership) agreement and a cohabitation agreement?
If you and your partner are living together and have no intention of getting married or entering into a civil partnership anytime soon, then this is when you would typically enter into a cohabitation agreement. However, if you are planning to do either soon or you are engaged or actively planning your wedding or civil partnership, you should enter into a prenuptial or pre-civil partnership (or pre-registration) agreement. There are specific timeframes in which a prenuptial agreement can be made and therefore you should act sooner rather than later. There are a few key differences:
- A cohabitation agreement tends to be a more flexible document. It sets out what happens to your assets if your relationship breaks down, including who owns what and in what proportion.
- A prenuptial, or pre-civil partnership agreement, is entered into before a marriage or civil partnership takes place. You must be planning it and know when it is going to take place. A pre-nup sets out what will happen to your finances if the marriage was to end in divorce and is often used when the couple want to do something different to what they would be legally entitled for example, to protect assets owned prior to the marriage.
What happens to a cohabitation agreement if one of us dies?

If you’re worried about what will happen if you or your partner dies while you are cohabiting, it’s important that you outline your wishes in your cohabitation agreement and seek advice about a will.
My partner is moving in with me on my farm. How do I protect the farm?

Cases involving farms can be some of the most challenging to deal with. Often home life and work life is closely intertwined. Farming businesses can often be very complex. If you own farmland and you live with your partner, it is crucial that you think about what would happen if your relationship were to breakdown so that you can take steps to protect your assets. Specialist legal advice will ensure the right steps are taken.
What if my life partner is also my business partner? Can a cohabitation agreement help us?

The starting point is for you both to discuss and then agree the key issues which could affect your business and anticipate problems before they arise. Whatever you agree should then be properly recorded for future reference, either in a shareholders’ or a partnership agreement depending on your business structure. This could cover how the business will be managed on a day-to-day basis, how key decisions will be made, how you are each remunerated, the future of your business including any succession planning and what will happen if your relationship were to end.
We have just moved in together. Who pays for what?

Who pays for what may depend on who owns the property and who can afford to pay for any outgoings. Ideally, you should discuss this and agree who will pay for what from the outset and include those decisions in a cohabitation or living together agreement. You are legally responsible for any bills, contracts, loans and credit cards taken out in your sole name, even if they were taken out for the benefit of the family. If your name is on the mortgage or the utility bills, the providers will expect you to pay the bills and not your partner.

If one of you already owns the property and the bills have been set up before the other moves in, it is still very important to discuss what each of you will pay and the implications this will have. This should be included in your cohabitation agreement.
We own our property as tenants in common. Can we agree something else in our cohabitation agreement?

As tenants in common, you each own a specific share of your property. When one of you dies, the share of the property owned by that person does not go automatically to the other, it goes to whoever it was left to according to the will or passes under the intestacy rules if there isn’t a will. If you want to change how you own your property you will need to enter into a new declaration of trust.
Why should I have a cohabitation agreement?

Many couples assume that if they are living together “common law marriage” protects them and they will be treated the same as married couples. However, this is a myth. Couples who live together do not have the same legal rights as married couples or those in a civil partnership, and in fact have few legal rights if a relationship breaks down. A cohabitation agreement can provide certainty by making clear what your financial commitments are, avoiding misunderstandings, avoiding disagreements if you split up and providing clear evidence of what you both intended if you did have to take any dispute to court.
Does a cohabitation agreement have to be signed?
The following are essential for a valid and binding cohabitation agreement:
- You should both enter into the agreement freely and voluntarily (after taking independent legal advice)
- The agreement should be set out in the form of a deed
- Each of you must sign the document
- Updating it in light of significant changes of circumstance
My partner and I have split up and are arguing over our finances. Will the court uphold our cohabitation agreement?

As long as both of you were upfront and honest about your finances, and the agreement was validly entered into, your agreement should be legally binding. However, a court may decide not to uphold an agreement if they consider it to be unfair to either of you or it does not take into account any change in circumstances for example if you have had children since the agreement was made. Involving a specialist cohabitation lawyer in the first place can help prevent these problems.