If you live with your partner or considering moving in together, you may have thought about a cohabitation (or living together) agreement. But do you actually need one?
There is, of course, no legal requirement to have a cohabitation agreement to live with a partner, but it can be a useful tool to protect your finances and establish practical arrangements. In this article, we look at why you might want to get a cohabitation agreement and what such an agreement can do for you.
What is a cohabitation agreement?
A cohabitation agreement is basically an outline of an open and honest conversation about what you and your partner would like to happen should the relationship come to an end. When considering a cohabitation agreement, you can discuss the financial aspects of your relationship and set them out clearly, so both parties understand.
Do cohabitants have the same rights as married couples?
Quite simply, no. One of the key incentives to enter into a cohabitation agreement is to create certainty. Many couples who have lived together before separating end up in bitter disputes because there was no agreement about what should happen to property, money, businesses and even children beforehand.
Why should we enter into a cohabitation agreement?
Firstly, a cohabitation agreement can protect your financial interests and give you peace of mind that should your relationship come to an end, you will have certainty over what you will walk away with. Your agreement may make provision for a property you own, rented property, household bills and debts, and how you wish to divide any other jointly owned property.
If you do not have a cohabitation agreement in place, you will be left to organise the division of assets informally, at a time that may already be challenging and sensitive. Generally, it works best to manage these aspects of your relationship while you are both on good terms and looking forward to a life together.
While many feel that making a cohabitation agreement is pessimistic, it is more like an insurance policy. Having such an agreement in place can allow you to move forward in your lives together with confidence and security.
For more information or advice on this or any other Family Law issue, please get in touch with our team of specialist Family Lawyers on 0115 9 100 200 or send us a message.
Posted on May 17, 2021