If you have recently moved in together or are currently considering it, there are a few legal considerations worth understanding to ensure you make the right decisions to protect yourself, your assets, and your family in the future.
Anyone who is not married but living with another person should consider having a cohabitation agreement drafted for peace of mind. This will benefit everyone living together as a household, whether in a romantic relationship or not. This includes both same-sex and opposite-sex couples, as well as friends or partners entering into a joint lease or purchasing property together.
The Current Law Offers No Protection to Domestic Partners
In the UK, the law only protects married couples and those who have registered a civil partnership. This means that couples who cohabit, regardless of the length of time they have been together or whether children are involved, do not have legal rights or remedies. The notion of common law marriage is a misconception. Many people are unaware of this fact and mistakenly assume they will be legally protected in the event of a relationship breakdown or death.
The Law Society has stated that unmarried cohabiting families are the fastest-growing type of family in the UK. It is strongly recommended that cohabiting couples get a cohabitation agreement drawn up to protect their interests should anything go wrong in the relationship.
Cohabitation Law Reform Is on the Agenda, But No Definite Outcome
Living together without marriage or civil partnership, even after many years, does not grant you or your partner any legal rights.
In 2019, a new law was introduced allowing mixed-sex couples who wish for their relationship to be legally recognised, but who do not wish to marry, to enter a civil partnership. A civil partnership provides the same tax benefits and legal rights as a marriage.
With the number of cohabiting couples now exceeding 3.5 million, law reform aimed at better protecting children and partners from financial and other risks is frequently called for by the Law Commission, legal practitioners, and academics. However, for political reasons, these efforts have not progressed. Until such time as the law changes, it is vital for cohabiting partners to seek legal advice and have a cohabitation agreement drafted, providing peace of mind regarding their future.
What Is a Cohabitation Agreement?
A cohabitation agreement is a flexible contract between you and your partner regarding finances, and may include additional practical arrangements. Before having a cohabitation agreement drafted, you should consider your current joint and individual responsibilities, such as the mortgage or rent, childcare costs, household bills, and how you wish to divide them. You should also think about what might happen in the event that the cohabitation comes to an end. A cohabitation agreement is a legally binding contract and, therefore, enforceable in law.
What to Include in a Cohabitation Agreement
A cohabitation agreement can include the following:
- The couple’s financial obligations towards each other, including who is responsible for what.
- Ownership of items such as cars, pets, a business, and property.
- Details of how joint bank accounts, additional finances, or other assets should be handled if the relationship breaks down.
- It may include access rights and financial responsibilities regarding children.
A cohabitation agreement can be drawn up at any stage of the relationship and can be amended or updated as life circumstances change—such as when considering having children or purchasing a property.
If you later decide to marry or enter into a civil partnership, the status of the cohabitation agreement changes. It would act similarly to a pre-nuptial agreement; a court would take the contract into consideration but would not be bound by it.
The Importance of Legal Advice
No two couples’ circumstances are the same, so while general information—such as the fact that cohabiting couples do not have the same legal rights as married couples—is valuable, it is essential that your individual circumstances are considered when drafting a cohabitation agreement. These will include your age, employment status, any disabilities or vulnerabilities, whether there are children involved, and the length of the cohabitation. These factors are particularly important when a cohabitation agreement is being drafted. A family law solicitor will be able to advise you on what should be included in the agreement, when is the best time to have one drawn up, and what legal effect it will have.
If you or someone you know wants more information or needs help or advice, please contact us on 020 3858 8020 or email [email protected].