Cohabitation Agreements Why a Cohabitation Agreement might be suitable for you

Putting a cohabitation agreement in place will ensure that both parties know what they are entitled to and what their financial situation is. It can also help prevent disagreements from arising if an agreement is set out in writing.

At Heald Solicitors, we can draw up a cohabitation agreement that helps protect your interests and rights. We will advise you about the content of the agreement before you sign it so that you fully understand the implications.

What will go in a cohabitation agreement?

You can choose what to put into a cohabitation agreement and we will ensure that you have a bespoke agreement tailored to your unique circumstances. The following issues are often included:

• What will happen in respect of property ownership, to include property owned previously and property bought or lived in together. Provision can also be made for how future property is to be owned, subject to review if circumstances change
• Financial provisions for children and specifying living arrangements post-separation
• Ownership of savings, money, and bank accounts
• Who will pay the mortgage or rent
• Payment of other bills
• Responsibility for debts
• Ownership of valuable items such as cars, jewellery and art
• Whether pensions will be divided
• What will happen to pets
• How household items will be divided

Is a cohabitation agreement legally binding?

Although a cohabitation agreement is not legally binding, if it has been properly drawn up and is fair and reasonable, making adequate provision for both parties, then the court will generally adhere to its terms if asked to make an order. A cohabitation agreement may also hold more weight if both parties have received independent legal advice as to its content.

It is therefore important to ensure the following procedure is followed when entering into a cohabitation agreement:

• Both parties fully disclose all of their assets to each other before signing
• Both parties must take independent legal advice as to the implications of the agreement before signing

If you are already living with someone and you wish to enter into a cohabitation agreement, this is possible and recommended, particularly in the light of any major changes in your circumstances such as the purchase of a property together or the birth of a child.

Understanding the Separation Rights of Cohabiting Couples

When cohabiting couples decide to part ways, their legal rights differ significantly from those of married couples. Unlike marriage, cohabitation doesn’t automatically grant rights to a partner's assets upon separation.

Property Division

Cohabiting partners can turn to the “Trusts of Land and Appointment of Trustees Act 1996” (TOLATA) when disputes over property ownership arise. This allows individuals to make legal claims on property shares if they can demonstrate a beneficial interest in the property.

Children’s Financial Provision

For financial support related to children, cohabiting partners can utilize Schedule 1 of the “Children Act 1989.” This enables parents to seek financial provision for their children, ensuring that the needs of the children remain the priority.

Seeking Legal Guidance

Given the complexities involved, it is crucial for cohabiting couples to consult with a legal professional. This ensures they have a clear understanding of their rights and obligations and can take steps to safeguard their interests during separation.

By understanding these rights and seeking proper advice, cohabiting couples can navigate the separation process more effectively.

Why Is Having a Will Important for Cohabiting Families?

In today's world, more couples choose to live together without getting married. While this choice offers freedom and flexibility, it also brings unique challenges, especially when it comes to legal matters and inheritance. One crucial aspect that often gets overlooked is the importance of having a will.

Avoiding Intestacy Problems

For cohabiting families, the laws of intestacy can present significant hurdles. These laws generally do not recognize the rights of a surviving partner in a non-marital relationship. Without a will, the surviving partner may not automatically inherit the deceased's estate, except for specific properties co-owned or if they're named beneficiaries in insurance policies.

Protecting Dependents

Cohabitants often have children who are not biologically related to one or both partners. In the absence of a will, these children might be overlooked, leaving them without any financial support or inheritance from the deceased partner, despite the relationship and dependence.

Preventing Family Disputes

Creating a will can prevent the deceased's assets from defaulting to distant biological relatives, potentially against their intended wishes. A well-drafted will ensures that the estate is distributed according to one's desires, thereby avoiding costly and stressful legal battles later on.

Ensuring Your Wishes Are Honoured

Ultimately, a will allows individuals to clearly express how their assets should be distributed, providing peace of mind. For cohabiting families, it’s a crucial document that ensures both partners and any dependents are taken care of, aligning with the deceased's true intentions.

In essence, drafting a will is not just about safeguarding assets—it's about protecting the ones you love and ensuring your wishes are respected after your passing.