What is a Cohabitation Agreement & Who is it For?

If you’re planning to live with your partner, it’s completely natural to focus on the exciting parts such as finding a home, building a life together, and sharing day-to-day living. However, from my experience as a family lawyer, I can say that it is also sensible to think ahead, just a little, about how things would work financially if circumstances ever changed.

That’s where a cohabitation agreement can help, and I often work with clients who are keen to have such a document in place. Whilst it takes some time to consider what will form part of that agreement, it’s a very worthwhile exercise for many reasons.

What is a cohabitation agreement?

A cohabitation agreement is a written document between two people who live together or are planning to. It sets out clearly how you both intend to manage your finances, property, and responsibilities while you are together and what should happen if you later separate.

In simple terms, it helps avoid misunderstandings by putting your intentions in writing from the outset. It can cover things such as:

• Who owns the home you live in and in what shares

• How household bills and expenses are divided

• What happens to savings, possessions, or jointly used items

• What should happen to the property if you separate

It can also record ownership of personal belongings such as cars, furniture, or artwork so there is no confusion later on.

Who is it for?

Cohabitation agreements are most commonly used by couples who choose to live together but do not wish to marry or enter into a civil partnership.

They are also helpful if:

• You are buying a property together

• One of you already owns the home

• You are contributing unequally to a deposit or mortgage

• You are combining finances in any meaningful way

You can enter into an agreement before you move in together or at any point afterwards.

This provides an overview of what a cohabitation agreement is and who it is for. The reasons why many couples choose to put one in place are considered in the next part of this series. Watch for the next article where I discuss this further.

Are you considering how to structure your financial arrangements clearly from the outset? Elizabeth Stocker is a consultant solicitor specialising in family law and cohabitation agreements. She can help you put the right framework in place. Get in touch for a confidential discussion.