Is a cohabitation agreement legally binding?

Is a cohabitation agreement legally binding?

A cohabitation agreement is a legally binding document in the UK. It is essentially a contract between two parties who are cohabiting. Provided the agreement has been drafted correctly and includes all the relevant information that is required by law to establish a legal contract, it will usually be enforceable unless it is not drafted properly or is deemed to be unfair. 

For cohabiting couples, a cohabitation agreement can be a valuable and often overlooked tool to safeguard financial, property, and familial arrangements. 

What is a cohabitation agreement?

A cohabitation agreement is a legal document designed for unmarried couples who have chosen to share their lives by living together. This comprehensive document outlines arrangements for finances, property, and children during the cohabitation period and in the event of a split, illness, or death.

While cohabitation agreements can be established at any point in a relationship, it's especially beneficial to consider one before moving in together. However, other significant life events, such as deciding to have children or getting a mortgage, can also prompt the need for a cohabitation agreement. Without such an agreement, unmarried couples may find themselves lacking essential legal rights.

Cohabitation agreements aren't exclusive to romantic couples. They can also be established between non-romantically involved individuals, such as friends or siblings, seeking to formalise their living arrangements and responsibilities.

Unlike married couples, unmarried couples don't automatically have rights. A cohabitation agreement ensures that each partner has a fair share of the other's assets, providing financial security.

For example, in a medical emergency, a cohabitation agreement can secure next of kin rights, ensuring that important decisions can be made promptly and in the best interest of the individuals involved. Beyond legal and financial aspects, a cohabitation agreement is practical for dividing bills and other responsibilities, promoting a harmonious living arrangement.

What is included in a cohabitation agreement?

A cohabitation agreement is a handy tool to avoid financial misunderstandings between partners living together. It can cover important things like how rent or mortgage is shared, who pays which bills, and the use of a shared bank account. 

This agreement is especially helpful in clarifying responsibilities for any debts incurred while living together. If you have personal assets, like property or investments, that you want to safeguard, a cohabitation agreement can provide that protection. It's best to set up this agreement before moving in together, but if you're already living together, it's never too late to create one.

What is the difference between a cohabitation agreement and a prenuptial agreement?

If you and your partner are living together but not planning to get married soon, a cohabitation agreement is a flexible way to decide what happens to your assets if the relationship ends. If you're about to get married or enter a civil partnership, a prenuptial agreement is a good idea. It's made before the marriage or partnership and determines what happens to your finances if things don't work out, particularly to protect assets owned before the marriage.

How Can GloverPriest Help?
At GloverPriest, we provide friendly and transparent family law advice. If you would like further help on cohabitation arrangements, please don’t hesitate to speak to one of our expert family lawyers today. Complete our enquiry form.