What is a cohabitation agreement?

What is a cohabitation agreement?

A cohabitation agreement (also called a ‘living together agreement’) records arrangements between a couple (or more people if cohabiting) who are living together.

The kinds of arrangements that are recorded include:

• Financial arrangements (e.g., who’s paying the mortgage, rent, or bills)
• Responsibilities
• Rights while living in the property.
• Ownership of personal property (including items such as cars, furniture, or art)
• What will happen to items or property if the cohabiting people decide to no longer live together

Is a cohabitation agreement legally binding?

Not necessarily, as a contract, it’s legally binding but not legally enforceable by the courts. There's some uncertainty about whether a court will uphold a cohabitation agreement. To make sure it holds up, it's important to follow contract law principles when drafting it. That's why it's best to have a legal professional draft your cohabitation agreement.

What happens if there’s a dispute (disagreement)?

• Property

Without a cohabitation agreement, people can often spend large amounts of money on legal proceedings to decide their respective shares in property that they either co-own or that is owned solely by one of them but to which another may have contributed. With a cohabitation agreement, these disagreements are often simpler (and cheaper) to settle where intentions are set on paper.

• Children

It’s always better to resolve issues around children outside of the court. The court has a no-order principle, so will only make an order if it’s in the best interest of the child. If there is a disagreement about child costs, you can either use a co-parenting service, like amicable to reach an agreement and have a private arrangement documented in our parenting contract or a parenting plan.

You can also apply to the Child Maintenance Service for child support after separation. If the parent who doesn't live with the children doesn't pay child support as expected, the court can consider this when deciding how much of the home each person owns.

How much does a cohabitation agreement cost?

The cost of a cohabitation agreement depends on your situation and how complicated the agreement is. It can be expensive, and you'll need a lawyer to draft it. However, having one can be very helpful, providing security and peace of mind if you need it.

Do I need a cohabitation agreement?

Cohabitation agreements are normally for couples who choose not to marry or enter a civil partnership but want to live together. They're also used by people who combine their finances to buy a property together. For instance, if a property is co-owned, a cohabitation agreement can detail how to split the proceeds if the property is sold after they stop living together.

You can create a cohabitation agreement no matter how the property is owned—whether it's rented, jointly owned, or solely owned.

These agreements provide financial security and reassurance, especially if the property is owned. While there might be less need for one if the property is rented, it can still help manage any future disputes.

Having a cohabitation agreement and discussing each person's rights and responsibilities regarding the property before living together can prevent costly and uncertain legal battles if the cohabitation ends.

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