Cohabitation Agreements
With a rising number of couples choosing to live together rather than to marry, the incidents of longstanding, non-married couples breaking up is on the increase. Unless careful consideration was given at the outset the consequences in relation to their respective assets can be disastrous.
As lawyers advising on such matters, we are often asked what will happen to property owned by each of the partners should the relationship break down. They worry if they “move” their partner into their property the partner will then have a “claim” on the property or other assets even if they are not married. If one of the parties has previously been married and divorced they may wish to protect the assets which are in their sole name. It is becoming increasingly common for couples in this position to have a Cohabitation Agreement drawn up. We offer a fixed fee Cohabitation Agreement.
What is a Cohabitation Agreement?
A Cohabitation Agreement provides the framework for couples to record their intentions and record their respective contributions. This in turn will hopefully set aside any fears they may have prior to living together and they can feel safe in the knowledge that if the relationship was to break down, then the Agreement will safeguard them financially.
Is a Cohabitation Agreement necessary?
You might wonder why this is relevant but couples who live together can make virtually no use of the system of law available to married persons and are therefore much more vulnerable on the break up of the relationship or the death of one party.
What can be included in a Cohabitation Agreement?
The terms to be included in the Agreement are a matter for the parties involved; however, it is extremely important that both parties seek independent legal advice. The Agreement can include details about:
- Property;
- Payment of the mortgage and other outgoings;
- Ownership of contents;
- Liability for debt;
- Ownership of bank accounts and much more.
The Agreement will need to be precise and detailed and confirm that the parties intend to create legal relations which will then ensure that the Agreement is enforceable. Unfortunately, the law is not well equipped to deal with cohabiting couples. This means that your wishes in the future and for the future may not be taken into account. For example, even if you are living together you are not considered to be your partner’s next of kin, so we recommend that you make wills to ensure that you make adequate provision for each other in the event of death. Some pension providers do not automatically pay a survivor’s pension to the partner they live with in the event of death. We can draw up a Cohabitation Agreement, advise you on the making of a Will, or upon drawing up a Trust Deed in relation to the property to safeguard your and your partner's interests.
Can't we just ask the Court to sort out our assets if we separate?
Whereas the Courts have power to adjust property rights on divorce, they do not have this discretion in respect of unmarried couples. Instead the Court bases the division of assets on actual contributions made by the parties and their intentions. It may be difficult to prove actual contributions and on separation either or both of the parties may have honestly forgotten (or conveniently forgotten) their original intentions.
Matrimonial Menu
Contact Us
Octagon House, 8A Fir Road, Bramhall, Stockport, Cheshire SK7 2NPTel: 0161 439 0999