Cohabitation Agreements
What is a Cohabitation Agreement?
A cohabitation agreement sets out how you and (usually) your partner will manage your joint affairs. Although often made at the start of a period of living together, or when a couple purchase property for the first time, you can make a cohabitation agreement at any time. Although commonly for couples, it can also for other relations, such as friends or siblings living together.
The agreement can cover how rent / mortgage costs and other bills be shared, as well as how to deal with any joint bank accounts, property and other assets if you separate. The aim is to ensure fairness in the relationship, as well as remove any worry about what would happen if you do separate.
What can a Cohabitation Agreement cover?
Agreements can include some, or all, of the following:
- take into account deposit contributions;
- how each person will contribute to rent, mortgage or household bills;
- nominating each other as a beneficiary under a pension and/or life policy;
- how any debts will be divided;
- how any joint bank accounts will be contributed to;
- how joint items will be distributed, such as furniture, cars, appliances etc.; and
- who will be responsible for any pets.
Who is a Cohabitation Agreement suitable for?
These agreements are typically suitable for cohabiting couples (who are not married but are living together as a couple). Couples who are married, or in civil partnership have legal rights which cohabitation agreements are not often suitable for. Additionally, if children are involved, although we can include any arrangements relating to the caring of children, again these types of agreements can be unsuitable.
Alexander Legal Services do not provide family law (including matrimonial and childcare) advice. Our cohabitation agreements are targeted at clients who are living together, but are unmarried, particularly younger couples purchasing their first property who have been advised by their mortgage adviser to make a will.
How are Cohabitation Agreements enforced?
The main purpose of the agreement is it should help avoid any dispute if a relationship ends. By drafting a cohabitation agreement and entering into a binding agreement, couples are agreeing how their joint interests will be managed during their relationship, and (if the relationship ends) how these interests will be settled. Provided you have received independent advice on entering into an agreement, and the agreement itself appears fair and reasonable, then a court is likely to enforce the agreement should it be challenged by one of the parties.
The process
Although often a lengthy process, we will usually complete the agreement over two appointments. The first appointment will be a fact-finding exercise to give us all the information required to draft your agreement, which will usually be sent to you within 10 working days, for approval. Once approved, a signing appointment will be arranged, again usually within 10 working days. To be valid, your agreement must be signed by both parties in the presence of independent witnesses.
What will we need to know?
Ahead of our fact-finding appointment, we will send you an instruction questionnaire (Form H). It would be helpful if you think about everything you own together, including any property, cars, personal possessions, stocks, shares, bank accounts, insurance policies, pensions and any business assets.
Although you are likely to complete the questionnaire with your partner, we can only meet with and accept instructions from one party, which will allow the other party to seek independent advice on the agreement.
Finalising your Cohabitation Agreement
In between approving the draft agreement and signing it, the other party is required to seek independent legal advice on the agreement to avoid any dispute should the agreement be challenged. This will delay the signing, and could increase costs, but it’s an important step to ensuring the agreement reflects the wishes of both parties and can be fully enforced. With our links to local universities, we may be able to arrange for the other party to receive free legal advice.
Reviewing your Cohabitation Agreement
You should review your agreement at least every five years and after any major life changes such as marriage, having children or moving house. As part of our ongoing service, we will regularly contact clients (usually every three to five years) to offer a free review.
Cost
We charge £480 which does not include the other party seeking independent advice from another lawyer, who could also charge. No VAT is currently charged on our fees.