Living with a partner can have serious financial consequences if
the relationship breaks down. Unlike divorce proceedings,
where needs are a key consideration, the basis for cohabitees who
separate is often the position they were both in before they began
cohabiting. There is no such thing as "common-law" husband and
wife.
A cohabitation agreement is one way which can help protect your
position. The courts have not confirmed that cohabitation
agreements are enforceable but, providing certain contractual
conditions are met, it is likely that an agreement would be
upheld.
The agreement should deal with what will happen to sole and
joint property and assets in the event that the relationship breaks
down. This can include business assets, inheritances, gifts,
motor cars, debts, life insurance, pensions, living expenses and
provisions on death.
A cohabitation agreement cannot cover every eventuality, but
will provide a useful framework if the relationship breaks down in
the future for specifying areas where no claims can be made, for
example. This is particularly important when a business or
house was owned by one party before moving in together.
Click here for the procedure to
obtain a living together agreement.
