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. 

What 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. 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

If 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. If the non-legal owner does make a financial contribution to the property, you may both agree that they should be entitled to a share in the property’s value and the cohabitation agreement can provide for this.

Property bought while living together

If you buy a house together but only one of you is named as the legal owner, your cohabitation agreement can address whether or not the other partner has any entitlement to the property. If you buy a property in joint names, your agreement can clarify your respective shares and it can also provide for who should remain in the property and have the first option to retain it in the event of a separation. 

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.

Seek independent legal advice

You should both take 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

What our clients say about us?

“Mills & Reeve have expertise in every area of children law.”

Chambers 2024

“Zoe is widely acknowledged as the best of children lawyers in her generation”

Chambers 2024

“They have a very strong reputation and are well able to deal with complex cases.”

Chambers 2024

“What Colin doesn't know about international children law isn't worth knowing.”

Chambers 2024

“Zoe Fleetwood is a strong name in the children sphere and has a justified reputation as being a calm and effective advocate for her clients.”

Legal 500

“An excellent stand-out team who regularly deal with the most difficult of cases.”

Legal 500

Get in touch

Our team of legal experts are here to support you.
Contact one of our lawyers today.

Contact us

Our family lawyers

The family team at Mills & Reeve have an unrivalled reputation for understanding what matters to our clients and for combining technical expertise with clear advice and excellent client service. 

Our clients

Cohabiting couples are the fastest-growing family type in the UK. As a result, we help increasingly diverse clients, including:

  • Blended families
  • Same-sex families
  • Young couples
  • Parents and grandparents providing financial support to their children and grandchildren
  • Couples who are in business together
  • Professional and family trustees

Why choose Mills & Reeve family solicitors?

We understand that choosing a family law team can be difficult, but we like to keep things as simple and stress-free as possible. Here are some of the reasons you can trust us to act as your family solicitor:

Resources

Explaining family law podcast

Facing a family law issue and not sure what's involved? Our podcast is the right place to start.

Listen to our podcast

Family and children blog

Our family and children law blog provides practical advice and insight on a wide range of topics by our family and children lawyers.

Visit our blog

Navigating separation survey

Explore key findings from our YouGov survey on married individuals' views on family law issues and dispute resolution.

Read more

Our expertise

Unmarried couples
Inheritance tax for unmarried couples
Property rights for unmarried couples
Unmarried partners rights after death
Wills for unmarried couples

Cohabitation agreements FAQ's

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. 

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.  

Whilst you can access examples and templates online, the agreement should be specific to your circumstances. Generic templates may miss things out 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. 

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 

If you’re worried about what will happen if you or your partner dies while you are cohabiting, it’s important that you both outline your wishes in your cohabitation agreement and that you also seek legal advice and you each enter into a Will. Without a valid Will in place, your wishes may not be implemented in the event of first death.

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 and with a cohabitation agreement to ensure it is clear what happens to the business if your personal relationship were to end.

These agreements can cover how the business will be managed on a day-to-day basis, how key decisions will be made, how you are each remunerated and the future of your business including any succession planning.

As tenants in common, you each own a specific share of your property. If you want to change how you own your property, you will need to enter into a new declaration of trust, which can be included within a properly executed cohabitation agreement.

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 

Related sectors & services

Private wealth Children Divorce and separation International family law Surrogacy and fertility law Unmarried couples Alternatives to court Wealth protection