What is a Cohabitation Agreement and do I need one?
The number of people living with partners continues to rise with an estimated 5.9m people cohabiting in 2012, according to the ONS. Many people who live together wrongly believe they are living in a 'common law' marriage that would give them the right to personal maintenance and a fair share of assets if they were to break up. In fact, this is a myth.
If you are living with a partner but you are not married or in a civil partnership, did you know that the law offers you little legal protection should your relationship fail? This is because there is no formal recognition in law of co-habiting relationships outside of marriage or civil partnerships. If something does go wrong, it can be very difficult and expensive to win a fair share of property if your partner's name is on the deeds, even if you've contributed to the mortgage.
The best solution if you are living with a partner and want to protect yourself could therefore be to get a 'cohabitation agreement' – sometimes termed a 'no-nup'.
What is a Cohabitation Agreement?
A cohabitation agreement is a little similar to a pre-nuptial agreement, which most people will have heard of. It allows you to set out arrangements for what will happen to property and other assets such as savings or a car you bought together if your relationship does end. You can also use it to agree what financial arrangements you will make for any children in addition to the legal requirements for maintenance.
If you do break up and you have a Cohabitation Agreement in place, it is legally binding, as long as you've both received proper legal advice independent of one another.
Should I get a Cohabitation Agreement?
Like pre-nups, Cohabitation Agreements can seem rather unromantic, but they do offer the benefit of giving you certainty and the peace of mind that you know what will happen to any assets if your relationship breaks down.
You will want to seek out independent legal advice to ensure the Cohabitation Agreement is drawn up correctly and protects your interests.
