Why is it important to safeguard your future together?
Written by Rhianna Greenley | Family Team |26 September 2023
Following a committed relationship, the next stage for a couple is usually to move in with one another. Whilst they have not yet tied the knot, it is important to ensure that their assets and future are protected should the worst happen, and the relationship ends. This is where cohabitation agreements come into play.
You may have heard that unmarried couples living together do not have the same legal standing or rights compared with married couples, as they have different legal implications should their relationship break down. This is true, but unfortunately it is not something that is commonly spoken about.
Unfortunately, a cohabitation agreement isn’t something people tend to consider when moving in together, particularly as no one wants to plan for splitting up during a happy time of their life. However, it is a crucial factor to consider when taking that important next step – particularly with finances involved.
What is a cohabitation agreement?
A cohabitation agreement is a document designed to support unmarried couples currently living together or planning to do so. This important agreement outlines the rights, obligations, and expectations of each party, addressing key aspects. This could include asset division, property rights, and other important matters in the event of a relationship breakdown or significant life events.
Why should I consider a cohabitation agreement?
There are several reasons you should consider a cohabitation agreement when moving in with your partner, including:
Clarity and Security: This agreement will enable both parties to establish expectations and minimise conflict and uncertainty by setting out rights and responsibilities. This provides peace of mind and creates a sense of security for everyone involved.
Protection of Assets: There is no legal recognition for unmarried couples. As a result, your assets may be vulnerable in the event of a relationship breakdown. A thorough cohabitation agreement allows you to try and protect individual assets as much as possible and create a fair mechanism for dividing joint assets in the event of a breakdown.
Financial Protection: A cohabitation agreement can outline how joint finances, debts and financial support will be handled through the relationship or separation. Setting clear guidelines in advance protects the financial interests of both partners and supports the resolution of potential future financial disputes.
Stability for Children: For couples with children, a cohabitation agreement can include provisions relating to children (although, we would recommend you seek legal advice on your position regarding child arrangements upon relationship breakdown if an amicable agreement cannot be reached directly between you).
Protects Autonomy: A cohabitation agreement allows you to maintain individual autonomy while committing to a long-term relationship. You are able to establish rules that respect individual rights and preferences.
Cohabitation agreements can offer essential benefits for unmarried couples, including clarity, security, and asset protection. Proactively addressing these important aspects helps to safeguard the relationship and provide a solid foundation for a secure future together.
Are Cohabitation Agreements Legally Binding?
A Cohabitation Agreement is not legally binding because it is not considered by the Court at the time of preparation or sealed by the Court. However, it is a document that could be used in any future proceedings to show what was agreed at the time and evidence the intentions of what would happen in the event of a breakup.
If you do decide to enter into a Cohabitation Agreement, it would be best for you each to take independent legal advice in relation to the terms and the document itself as this will make it potentially more persuasive to a Court in the future.
Our expert team of Family law professionals specialise in creating comprehensive cohabitation agreements that are tailored to meet the unique needs of each couple. You can contact the team by calling 01752 827030 or emailing family@nash.co.uk. We’d be more than happy to have a chat with you about how we can help.
