Cohabitation Agreements

Cohabiting couples form the largest growing family type in the UK, but according to a survey conducted by family law group Resolution, one third of cohabitees are not aware that there is no such thing as “common law husband or wife” (Millions of couples at severe financial risk due to ‘common-law marriage’ myth | Resolution).

Cohabitation Agreements

Cohabitation agreements are a legal document that records how your assets should be distributed in the event of a relationship breakdown. While a cohabitation agreement cannot grant you the same rights as a married couple, it is still a good idea to consider one.

Cohabitation agreements are often used in circumstances where:

• one party already owns a property and their partner moves in.

• one party already owns a property, but their partner makes a financial contribution to the property without become a joint legal owner.

If you own a property and your partner moves in, there is a risk that your partner could make a claim on the property, even if they have made minimal financial contributions. This can lead to lengthy litigation and costly legal fees. A cohabitation agreement can set out what financial contributions the parties will make and what share of the property they will receive when it’s sold.

Having a cohabitation agreement in place can save stress and money in the event of a relationship breakdown. It also provides the parties with certainty over their assets throughout the relationship.

Declaration of Trust

You should consider making a declaration of trust if you are purchasing a property with someone else, whether a partner, family member or friend. A declaration of trust will record how the proceeds of sale are to be divided when the property is sold.

If you do not have a declaration of trust in place and you cannot agree on how the proceeds of sale should be distributed, then a Court may order that the proceeds be distributed equally. If you have each made unequal contributions to the property, this may not be entirely fair.

How MJP Law Can Help

Our Family Law team have extensive experience with cohabitation agreements and are able to assist in recording your agreement into a Cohabitation Agreement, and can advise you on your rights and the implications of the agreement.

If you require help with a cohabitation agreement, please contact a member of our Family Law team on 01202 842929 or family@mjplaw.co.uk.

For more information on the differences between married and unmarried couples, please read our blog: Difference Between Married and Unmarried Couples.