Cohabitation Agreement

What is a cohabitation agreement?

A cohabitation agreement can be used when two people intend to live together. This agreement will clarify who owns particular assets and how bills should be paid. This agreement is for use in England and Wales.

What is the difference between a cohabitation agreement and a pre-nuptial agreement?

A pre-nuptial agreement is an agreement that is entered into before marriage or a civil partnership. This type of agreement will specify what will happen to assets and finances in the event of a divorce or dissolution.

A cohabitation agreement will typically be used by an unmarried couple (who do not intend to marry in the future).

Is it mandatory to have this kind of agreement?

No. It is not mandatory. This type of agreement can be helpful because unmarried couples do not have the same rights as married couples. Married couples will have certain claims available to them if they decide to divorce.

The agreement can be helpful to ensure there is a clear understanding of what will happen in the event of separation.

How do the parties finalise the document?

Before signing and entering into a cohabitation agreement, each party should:

• Have made full disclosure regarding their financial circumstances (meaning that they will have shared and discussed all the property and assets they own)
• Both have received independent legal advice* (this is done to avoid any allegations that a party has signed under any pressure, and to minimise the chances of the agreement being considered unenforceable)

This document will not reviewed by a lawyer to ensure that the legal content applies to the personal situation of the parties. In order to review the particulars of the final agreement and to receive advice about this, it will be necessary to instruct a lawyer. This document will take the form of a deed. For assistance finalising, reviewing and executing a deed, advice should be sought from a lawyer who is regulated by an approved regulator in the legal services sector. It is possible to search for a lawyer using the Law Society – find a solicitor webpage.

Who can enter into the agreement?

Two individuals who are living together can enter into a cohabitation agreement. Usually, this will be an unmarried couple, however, it might also include friends or other relations who are living together. The parties should be over the age of 18 and should be able to make decisions for themselves.

How long will the agreement last?

The agreement can be made without specifying any fixed end date. It will be intended to remain in place for the duration of the relationship. The agreement will specify how the agreement may be ended early, for example by:

• providing notice
• the marriage of the parties

What must be done after the agreement has been signed?

After the document has been signed by each party, they should retain a signed copy.

What documents should be attached to the agreement?

The schedules at the end of the agreement will be completed by the parties to set out the details of:

• any property that is owned separately by the parties at the time of making the agreement
• any property that is owned jointly by the parties at the time of making the agreement (including the details of how that property is owned and whether it is owned in equal shares).

Is it necessary for the signatures to be witnessed?

The document must be executed as a deed. This means that the signature of each party must be witnessed. The witness should:

• be over the age of 18
• have mental capacity (meaning that they are capable of making decisions)
• not be a party to the deed

For assistance finalising, reviewing and executing a deed, advice should be sought from a lawyer who is regulated by an approved regulator in the legal services sector. It is possible to search for a lawyer using the Law Society – find a solicitor webpage.

What are the costs involved in finalising the agreement?

The parties should obtain independent legal advice about the contents of the agreement. The solicitor will advise of their fees in advance.

Is the agreement legally binding?

Yes, a cohabitation agreement can be legally binding. It is important that the parties can show that they have entered into the document voluntarily, of their own accord and should ensure they understand the implications of entering into the agreement. The parties should each obtain independent legal advice to address this point.

What other documents might be used alongside the agreement?

A cohabiting couple may also wish to make sure they have a will in place, to ensure that they have specified how their assets should be dealt with after their death.

What should the agreement contain?

A cohabitation agreement should include the following:

• the parties– the parties who are living together will be identified
• important declarations – these declarations will confirm that the parties have received legal and/or financial advice and have declared all information about their finances
• property rights - information about how the property is owned and which party has an interest in the property
• assets and possessions – information about how assets that are owned and acquired by each party shall be treated and whether these will be shared or kept in the sole name of a party
• bank accounts and financial provision - details about any joint accounts will be held and if so, how those accounts may be used and what contributions should be made
• confidentiality – to confirm that the agreement will remain confidential
• expenses – how expenses (such as bills) will be paid and the responsibility of each party in relation to this
• termination – how the agreement may be brought to an end

What laws apply to the agreement?

The following key legal provisions will be relevant to a cohabitation agreement:

• The Law of Property Act 1925
• Administration of Estates Act 1925
• Inheritance (Provision for Family and Dependants) Act 1975
• Trusts of Land and Appointment of Trustees Act 1996
• K v K (Ancillary Relief: Prenuptial Agreement) [2003] 1 FLR 120

Help from a lawyer

You can choose to consult a lawyer if you need help.

The lawyer can answer your questions or help you through the process. You will be offered this option when you complete the document.

How to modify the template?

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.