The What, When and Why of Cohabitation Agreements.
Living together without marriage? A cohabitation agreement could be the key to financial security. Family Law Solicitor, Leonnie Watson discusses cohabitation agreements in her most recent blog…
What Is A Cohabitation Agreement?
A cohabitation agreement is a written contact between two people who are in a relationship and live together or who are going to live together but are not married. It most circumstances, if completed properly, it will be a legally binding document.
A cohabitation agreement generally deals with the following:
1) Who owns or owes what at the time of the agreement and in what proportions
2) What financial arrangement you have decided to make while you are living together
3) How property, assets, income and debts should be divided if you should split up
It can also include provisions for resolving disputes and agreements in relation to any children and how their time will be divided between their parents and how much maintenance will be paid.
If the terms of an agreement are reasonable, has been properly drafted and each party has independent legal advice, a court is more likely to uphold the agreement in the event of dispute about the agreement.
When Should I Make One?
You can make a cohabitation agreement at any time – whether you’re about to start living together or have been doing so for many years.
Ok… But Why?
There are no comprehensive laws that apply if you separate from someone you have been living with, rather than been married to or in a civil partnership with. There is no such thing as ‘common law marriage’ (The Myth & Mystery Of ‘Common Law Spouses’… – Timms Solicitors (timms-law.com). There is little legal protection, particularly in respect of financial matters.
Cohabitation agreements can also be changed as families grow or their circumstances change. For example, they can be reviewed if you move house or have children. They can therefore be flexible and adapted to meet the needs of most modern families.
So, by having a chance to think and talk about how living together is going to work financially, it means arguments are less likely later on. A cohabitation agreement removes uncertainty and provides a legal framework in the event of separation, minimising conflict and costs.
How Can Timms Help?
If you have any questions on cohabitation agreements or any other area of family law, please contact me on 01332 364436 or via email at l.watson@timms-law.com. Alternatively, you can visit the family law section of our website here.
August 2024