Cohabitation Agreements
Protecting unmarried couples and clarifying property & finance.
Many couples choose to live together without getting married or entering into a civil partnership. A common misconception is that couples who live together acquire the same legal rights as married couples over time — the so-called 'common law marriage'. This is a myth. In England and Wales, there is no such thing as common law marriage, and cohabiting couples have very limited legal rights compared to married couples. A cohabitation agreement is one of the most effective ways to protect your financial position and clarify your rights and obligations while living together.
Important Notice
Why Cohabiting Couples Need Legal Protection
When an unmarried couple separates, the law does not provide the same financial remedies as it does on divorce. There is no automatic right to a share of your partner's assets, no right to maintenance, and no right to a share of a pension. Disputes about property are governed by the law of trusts and equity, which can be complex, expensive and uncertain. A cohabitation agreement allows you to set out clearly, in advance, how your finances and property will be managed during the relationship and divided if it ends.
- Clarifying ownership of the property you live in
- Setting out each party's financial contributions and entitlements
- Agreeing how joint assets and debts will be divided on separation
- Protecting assets one party brings into the relationship
- Making arrangements for children in the event of separation
- Agreeing arrangements for shared expenses and household finances
What a Cohabitation Agreement Can Cover
A cohabitation agreement is a contract between you and your partner that sets out your agreed financial arrangements. It can cover property ownership and beneficial interests, financial contributions to the household, arrangements for joint bank accounts and shared debts, arrangements for any children, and what should happen to assets if the relationship ends. It can also deal with what happens in the event of the death of one partner, working alongside a Will.
- Ownership and beneficial interests in property
- How mortgage payments and household bills are to be shared
- Division of assets on separation
- Treatment of savings, investments and other assets
- Provisions relating to children
- Interaction with a Will and estate planning
Protecting Property — Declaration of Trust
If you are purchasing a property together as an unmarried couple, it is particularly important to record your respective shares in the property by way of a Declaration of Trust (also known as a Deed of Trust). This is a separate legal document that clearly records each party's beneficial interest in the property and can prevent costly and distressing disputes in the future. Our solicitors can advise on and draft both a cohabitation agreement and a Declaration of Trust as part of a comprehensive protection package.
Why Choose BW Solicitors?
BW Solicitors regularly advises cohabiting couples across Ilford, East London and Greater London on protecting their legal and financial position. We approach every case with a clear, practical focus on providing the protection our clients need. Do not leave your financial future to chance — speak to us today.