Glossary · UK
What is Cohabitation Agreement?
A written agreement between unmarried partners living together setting out how property, finances and belongings will be handled during the relationship and if it ends.
Full Definition
A cohabitation agreement (sometimes called a "living together agreement") is a written contract between unmarried partners who live together, setting out how they intend to handle property, finances, debts and belongings both during the relationship and if it ends through separation. It is particularly important in England and Wales because, unlike married couples or civil partners, cohabiting couples have no automatic legal rights to each other's property, income or pensions on separation, regardless of how long they have lived together -- the popular idea of a "common law marriage" giving similar rights after a certain number of years together has no basis in law. Without an agreement (or a declaration of trust for jointly owned property), disputes on separation about who owns what, or what share of the home each partner is entitled to, must generally be resolved through property and trust law, particularly the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA), which can involve costly and uncertain litigation to establish, for example, that a partner who was not on the property's title nonetheless has a beneficial interest through financial contributions or a common understanding between the couple. A typical cohabitation agreement will cover how the home (whether owned or rented) will be dealt with on separation, including any unequal contributions to the deposit or mortgage, how other shared assets, savings, and debts will be divided, arrangements for shared bills and household expenses during the relationship, and often provisions about pets and personal possessions, though it typically cannot override the separate legal framework for arrangements concerning children, which is dealt with through the Child Maintenance Service and, if needed, a Child Arrangements Order. To be most likely to be upheld by a court if disputed, a cohabitation agreement should be drafted with independent legal advice for both partners, be entered into voluntarily with full disclosure of each partner's financial position, and be updated if circumstances change significantly, such as having children or one partner giving up work.