Should You Get into a Cohabitation Agreement?

Cohabiting couples are the fastest growing families in the UK, according to the Office for National Statistics. However, this also means a drastic increase in complex legal disputes when these couples split.

The reason for these disputes is that 76% of these couples have no idea about what a cohabitation agreement is and why they should be getting one.

What is a Cohabitation Agreement?

A cohabitation agreement is much like a prenuptial agreement for an unmarried couple living together. The agreement documents how the property, belongings, bank accounts, debts, savings and all other jointly-owned assets will be split up when the couple decides to split.

The agreement can also include how the expenses of the house will be managed and the amount each partner will contribute to mortgage payments. In addition to that, an agreement can help a couple deicide if they want to purchase life insurance together or include each other as beneficiaries in their own policies.

Why is a Cohabitation Agreement important?

The law does not recognize any relationship outside marriage and/or civil partnership. This is why when a cohabitating couple splits there are lots of complications related to children and jointly-owned assets.

For example, X moves into Y’s house and starts contributing to mortgage payments. But on the house deed, only Y’s name is mentioned. So when the couple splits up, the court will not award anything X, because Y owns the house legally and there is no formal arrangement between the two.

Now getting into a cohabitation agreement may sound very unromantic, but is something which every sensible couple should do. The decision to move in shouldn’t only be led by emotions. It should be a carefully thought out decision which takes into account every possibility.

Is Cohabitation Agreement Legally Binding?

A cohabitation agreement is legally binding and the court implements it with full force of the law.

However, going to court is often not required as couples who get into a cohabitation agreement generally find it convenient to proceed with what they agreed.

How Is It Put Together?

Before going to a solicitor, a couple should mutually decide what each one owns, and how they would be willing to divide their assets. Then one partner can go to their solicitor and draw up an agreement. This agreement is then sent over to the other partner, who may discuss it with their own legal counsel.

Once both parties are satisfied, the agreement is signed and it becomes legally binding.

If you want to learn more about cohabitation agreements, then visit our website. We provide unparalleled solicitation services in the UK and provide all solicitations for children custody, divorces, prenuptial agreements and cohabitation agreements.