What Does a Cohabitation Agreement Cover?

When couples decide to live together, they often share property, merge finances and raise children without formally marrying. But while their day-to-day lives may resemble those of married couples, their legal position is entirely different. Many only realise this when faced with a relationship breakdown, dispute over shared property or the death of a partner - by which point the absence of a formal agreement can complicate matters.

A cohabitation agreement allows unmarried partners to set out their expectations in advance, to avoid legal uncertainty and prevent future disputes. In this blog, the family law solicitors at Clough & Willis explain what a cohabitation agreement can cover - and why it can help clarify each partner’s legal rights and responsibilities.

Property, assets and ownership

One of the main purposes of a cohabitation agreement is to clarify ownership of property acquired before or during the relationship. This includes setting out who legally owns the home, whether one partner has a beneficial interest in it and how any increase in value will be treated.

If a property is in one partner’s name but the other contributes to mortgage payments, renovations or bills, disputes may arise about what share - if any - they are entitled to. A clear agreement can state whether the property is to be treated as joint property, how contributions will be recognised and what should happen if the relationship breaks down.

The agreement can also list personal property and assets such as cars, furniture, jewellery or other valuables, helping to avoid future disagreements over ownership that could lead to legal disputes.

Mortgage payments and household expenses

Couples often share the costs of living together, including mortgage payments, rent, utilities and household bills. A cohabitation agreement can define who pays for what, how much each party contributes and what happens if contributions are unequal.

By setting expectations in advance, the agreement can confirm whether financial contributions like mortgage payments will (or will not) result in any ownership rights - avoiding disputes where one person assumes they are entitled to a share of the other’s property.

The agreement can also cover shared spending on renovations or repairs and set out how these costs will be treated in the future.

Financial accounts, debts and joint purchases

Many couples open joint accounts, take out loans together or make large purchases jointly. A cohabitation agreement can address these matters by stating who owns each bank account, who is responsible for repaying shared debts and how to divide jointly purchased items if the relationship ends.

It can also protect each party from liability for debts taken on by the other. Without a written agreement, one person may end up responsible for credit cards, loans or unpaid bills in the other’s name.

Where couples intend to keep their finances separate, the cohabitation agreement can confirm this and specify which financial accounts are individual and which are joint.

Children, support and care responsibilities

Although legal decisions about child custody and child support are dealt with separately under family law, a cohabitation agreement can still record how the couple intends to handle practical arrangements involving children. This might include where the children will live, how parenting responsibilities are to be shared, or how the parties expect to contribute financially.

However, it is important to note that terms involving children are not legally binding in the same way as financial terms. A court will always prioritise the best interests of the child and may depart from the agreement if circumstances change.

If one or both partners have children from a previous relationship, the agreement can also protect separate property for the benefit of those children.

What happens when the relationship ends

A cohabitation agreement can provide a roadmap for how to handle matters if the relationship breaks down. It may include provisions for:

• ●     Dividing assets acquired during the relationship.
• ●     Returning personal property to the original owner.
• ●     Selling the shared home or buying out one partner’s share.
• ●     Closing joint accounts or repaying shared debts.
• ●     Agreeing not to seek financial support from the other party.

This can help you to avoid lengthy and costly disputes if you separate, particularly if you or your partner feels they are entitled to more than was agreed under these circumstances. In some cases, the agreement might include a clause waiving any claim to spousal support - provided both parties received independent legal advice and the clause meets general fairness requirements.

Illness, death and decisions at a later date

A cohabitation agreement can address what should happen if one partner becomes seriously ill, loses capacity or dies. In some cases, it might include clauses confirming whether one partner may remain in the property, what share of the estate the other partner will receive or how jointly owned property should be dealt with.

While a cohabitation agreement cannot change what is written in a valid will, it can still be useful if a surviving partner needs to make a legal claim. For example, if one partner was left out of the will but relied on the other for financial support, the agreement could show what was agreed between them. It might also help to prove that the surviving partner had a right to share in property or other assets.

What cannot be included in a cohabitation agreement?

A cohabitation agreement is a legal contract, but not every clause will be legally enforceable. The law will not uphold agreements that include personal domestic arrangements or attempts to control private aspects of the relationship - such as promises to carry out household tasks or remain in the relationship - as these are not recognised legal obligations.

The court may also disregard terms that attempt to exclude a party’s statutory obligations - such as child support - or impose financial penalties for ending the relationship.

To be effective, a cohabitation agreement should focus on financial matters, property rights and clearly stated responsibilities. Each party should also take independent legal advice to help avoid challenges later on.

Why seek legal advice?

For a cohabitation agreement to be legally binding, it must be a properly executed legal document. Both parties should enter into it voluntarily, with full financial disclosure and the benefit of independent legal advice. A court is more likely to uphold the agreement if it is clear, fair and professionally drafted.

At Clough & Willis, our cohabitation agreement solicitors have many years of experience advising unmarried couples on cohabitation contracts that reflect their personal circumstances. We can help you by drafting a document that clearly defines your financial responsibilities, protects your property and reduces the risk of future disputes.