A guide to cohabitation agreements

What is a cohabitation agreement?

A cohabitation agreement is a written document drawn up between two or more people (usually a romantic couple) who currently, or plan to, live together outside of marriage or civil partnership. It records how the couple intends to manage their finances and property during the relationship, and what will happen to shared assets if the situation changes. It is a bespoke document that can be tailored to your specific circumstance, but it must be agreed between all the parties.

It can be as broad or as specific as your circumstances require. At its simplest, it might cover who owns what and how bills are divided. At its most detailed, it can address property ownership, savings, debts, children, pets, and next of kin arrangements.

Cohabitation agreements are sometimes called ‘living together agreements’. Both terms refer to the same document. Whilst there is nothing in law to stop a couple drafting one themselves, a DIY agreement is unlikely to carry much weight in court if it is ever challenged by either party. It’s best practice to get your agreement drafted by a family solicitor, who will make sure it is complete, clearly worded, and properly executed, all of which matters if the agreement is ever needed.

Expert advice from one of our solicitors

Ciara Pugh, a Partner at our family law office in Wimbledon, says:

“As a family solicitor I regularly advise couples who are living together but are unaware of the legal position surrounding cohabitation. It is becoming more frequent as I do see a trend that couples are either marrying later in life, or not at all.

 “A common misconception is that ‘common law marriage’ exists, giving unmarried couples the same legal rights as married couples or civil partners. In England and Wales, this is a myth. Cohabiting couples generally have far fewer legal protections, making a cohabitation agreement an important consideration.

 “A cohabitation agreement an agreement that sets out how a couple intends to manage their financial affairs while living together and what should happen if the relationship comes to an end. When properly drafted and executed, it can provide clarity, certainty, and protection for both parties. It is really worth considering and getting some legal advice on before steps are taken.”

What makes a cohabitation agreement legally enforceable?

For a court in England and Wales to give your agreement real weight, it should be executed as a deed. Therefore, it should have:

• Full financial disclosure: Both partners must provide an honest, complete account of their assets, debts, and income. Concealing or understating finances can mean the entire agreement is unenforceable later
• No duress or pressure: Both parties must enter into the agreement freely and voluntarily. An agreement signed under coercion, however subtle, is at genuine risk of being set aside
• Independent legal advice: You and your partner should each instruct separate solicitors. This removes any conflict of interest and demonstrates to a future court that both of you understood and accepted the terms
• Fairness: The terms must not be wholly one-sided or unfair at the point of signing. Courts may decline to uphold provisions that were unconscionable from the outset

How much does a cohabitation agreement cost?

The cost of a cohabitation agreement depends on the complexity of your circumstances. A simple agreement covering modest, shared finances will cost considerably less than one dealing with multiple properties, business interests, or more intricate financial arrangements.

It is worth noting that the cost of a cohabitation agreement is almost always significantly lower than the cost of a legal dispute that can occur if you do not have an agreement in place. For unmarried couples, property and financial claims can be costly, uncertain, and deeply difficult to navigate.

What does a cohabitation agreement lawyer do?

A specialist cohabitation agreement lawyer advises you on what the agreement should cover, drafts the document carefully, and makes sure both parties understand what they are signing.

In practice, this means reviewing your financial and property position to ensure nothing relevant is missed, advising on ownership structures. This includes the difference between holding property as joint tenants or tenants in common, and drafting clear terms that reflect your intentions in language a court would understand.

A solicitor will also advise on matters that fall outside the agreement itself, such as whether you should make or update a Will, and how your agreement sits alongside any other documentation you have in place.