Cohabitation Agreements: Everything You Need to Know in 60 seconds

By Rakhi Singal

Rakhi Singal is Founder, Director and Head of Family Law at RVS Solicitors. Studying at Bournemouth University and BPP Law School, Rakhi quickly gained a profile in the industry for her work. After creating and successfully managing the Family Law & Civil Litigation department at a leading Legal 500 law firm in London, a role that she was headhunted for, she got the idea to create a law firm in her own image. RVS Solicitors was created and has subsequently helped hundreds to achieve their legal goals, start new futures and obtain justice. A highly regarded family lawyer in the UK, Rakhi gained industry recognition for her relentless attitude, negotiation skills and her ability to always stay calm under pressure and provides a high level of expertise, knowledge and service to our clients every day.

As more couples choose to live together before marriage, or even forego marriage altogether, understanding your legal rights becomes crucial. Currently, more than 3.6 million couples cohabit together without being married or in civil partnership and the numbers grow each year. 

Contrary to popular belief, “common law marriage” does not automatically grant legal rights to cohabiting couples in the UK and specific protections through cohabitation agreements need to be put in place to ensure your financial safety and stability if you are one of those living in cohabitation.

Cohabitation agreements can also be useful for those who entered religious marriages that are not recognised by the UK as legal marriage, such as for instance Islamic marriages. 

Why Cohabitation Agreements Are Essential for Unmarried Couples

Unmarried couples who live together do not enjoy the same legal protections as married couples or those in civil partnerships. While some limited rights exist—such as claims related to financial contributions to a partner’s property, support for children, or claims upon a partner’s death—these couples are largely unprotected under the law.

Despite the 2007 Law Commission report advocating for greater legal protection for cohabitants, the UK government decided in 2011 not to move forward with these proposals. This,to this day, leaves many couples wondering how they can secure their financial future without entering into marriage or a civil partnership. The answer lies in a cohabitation agreement.

On October 10, 2023, Emily Thornberry MP announced that a Labour government would reform the law for cohabiting couples. With the recent victory of the Labour Party it is now expected that these plans might be put into laws, however there is no certainty at this point of what it will look like.Our team closely monitors the situation for any proposals and changes, however at this time the best course of action remains putting a cohabitation agreement in place.

At RVS Solicitors, our experienced family law team specialises in helping clients create cohabitation agreements that protect their interests. Whether you’re looking to understand your rights or draft a personalised agreement, we’re here to help.

What Is a Cohabitation Agreement?

A cohabitation agreement is a legal document that outlines the rights and obligations of unmarried couples who live together. This agreement is designed to protect each partner’s interests in case the relationship ends or significant life changes occur, such as the death of one partner. Unlike married couples, who are automatically granted certain legal rights and protections, cohabiting partners have no such default protections. A cohabitation agreement helps address this gap.

Key Elements of a Cohabitation Agreement

Property Ownership: Specifies how property and assets acquired before or during the relationship will be divided if the couple separates. Defines each partner’s contributions to mortgage payments, rent, and household bills.

Financial Arrangements: Details how joint accounts, savings, and investments will be handled. Outlines responsibilities for debts, including how they will be managed if the relationship ends.

Support and Maintenance: Determines whether one partner will provide financial support to the other during or after the relationship, and under what conditions.

Children: If the couple has or plans to have children, the agreement can include provisions about parental responsibilities, financial support, and living arrangements for the children.

Inheritance and Estate Planning: Addresses what happens to property and assets if one partner dies, especially if there are no wills in place. While a cohabitation agreement can’t replace a will, it can complement one by expressing each partner’s intentions regarding inheritance.

Dispute Resolution: Provides mechanisms for resolving disputes, such as mediation or arbitration, without resorting to lengthy court battles.

Duration and Review: Specifies the duration of the agreement and under what circumstances it should be reviewed or updated (e.g., if the couple marries or has children).

Why Is a Cohabitation Agreement Important?

There are numerous benefits of cohabitation agreements.Someof the most improtant are:

• Legal Clarity: It helps prevent misunderstandings and conflicts by clearly outlining each partner’s rights and responsibilities.
• Protection of Assets: It protects individual assets and ensures that contributions to shared assets are recognized.
• Peace of Mind: It provides both partners with a sense of security, knowing that there is a plan in place if the relationship ends.
• Avoids Court Battles: By having a clear agreement, couples can avoid costly and emotionally draining legal disputes.

Are Cohabitation Agreements Legally Binding?

Historically, cohabitation agreements were considered void due to public policy concerns. However, changing social values and legal perspectives have made them enforceable, provided they meet standard contractual principles. A properly drafted agreement will comply with these requirements, making it more likely to stand up in court.

When Should You consider a Cohabitation Agreement?

A cohabitation agreement is an essential tool for unmarried couples living together, offering protection and clarity in a relationship that, without legal marriage, lacks the automatic legal safeguards provided to married couples.

It  can be created at any stage of a relationship, whether before moving in together or after years of cohabitation. However, there are certain events that may,in particular, require consideration of putting a cohabitation agreement togather. 

• When moving in together as an unmarried couple
• If you own property or significant assets
• When you want to define financial contributions and responsibilities
• If you have children or plan to have children together
• To establish clear guidelines in case the relationship ends

While cohabitation agreements can be drawn at any time, it’s crucial to keep the agreement updated to reflect major life changes like buying property, having children, or receiving an inheritance. If the agreement fails to be reviewed and updated,it risks becoming obsolete. 

How to ensure enforceability

For a cohabitation agreement to be legally binding, both parties must demonstrate that they willingly agreed to its terms with full knowledge of their implications. Independent legal advice strengthens the agreement’s enforceability, especially if it’s ever brought to court.

The Cost of a Cohabitation Agreement

The cost varies based on the complexity of the couple’s affairs but typically ranges between £1000 and £3,000, plus additional fees for independent legal advice. While this may seem steep, it’s a fraction of the cost compared to potential court battles.

Can You draft your own Cohabitation Agreement?

While there are many templates available, they often miss crucial details. Given the importance of independent legal advice, involving a solicitor in drafting the agreement is advisable to ensure it’s comprehensive and legally sound,as you otherwise might end up paying higher legal fees to have the agreement drafted by you reviewed by solicitors and amended to meet the legal requriements.

Can a Cohabitation Agreement Be changed?

Yes, and it should be. As life evolves, so should your agreement. Major life events like having a child or a significant change in earnings are good reasons to update the document. It is advisable that you reconsider your financial circumstances on yearly basis and see whether there might potentially have intervened changes that the agreement needs to reflect. 

Does a Cohabitation Agreement Still Stand following marriage?

Marriage changes the legal status of a couple, rendering a pre-existing cohabitation agreement invalid. In such cases, a prenuptial agreement should be created to reflect the new legal framework.However,the cohabitation agreement can form the basis of a pre-nuptial agreement, making it a much faster process.

How RVS Solicitors Can Help

People enter into cohabitation agreements for various reasons, from regulating property interests to safeguarding against future claims. Rakhi Singal and her team, have extensive experience guiding clients through this process. Whether you need a cohabitation or prenuptial agreement, our team is here to assist you, wherever you are based.
For expert advice on cohabitation agreements or to book a free initial assessment, contact us today.