What is a Cohabitation Agreement?
This is also known as a Living Together Agreement. It can set out how you and your partner will manage your day to day finances. You can make one before you start living together or at any time thereafter.
What should be included in a Cohabitation Agreement?
The agreement can cover how you will share the rent or mortgage and bills and how to deal with any bank accounts, property or assets if you later separate. It helps agree things in a fair way, without the emotional pressures which can arise when a relationship breaks down.
In fact, an agreement can strengthen a relationship by reducing any worry or uncertainty that would occur if you were to separate – preventing disagreement and avoiding potentially costly Court proceedings.
You will be advised on what can and should be included in your agreement so that both you and your partner’s interests are protected.
The following are all examples of what are regularly included in Cohabitation Agreements:-
- agreement on how each of you contributes to rent, mortgage or household bills
- agreement on how each of you will deal with any debts
- the fact that if you own a property each of you may have contributed differently to the deposit
- how you would deal with the sale proceeds of any property following separation
- how you deal with any joint bank accounts
- taking out life insurance on each other
- nominating the other as beneficiary under a pension
- what would happen to items you bought together like cars and furniture
- how you will support any children you may have
Can an agreement be enforced in Court?
Provided you have both been honest about your finances and assets, it is likely that a Court would enforce a properly prepared agreement as it constitutes a legal contract between you.
How much does a Cohabitation Agreement cost?
Wright Hassall now offer a fixed price service in relation to the drafting of such agreements. Contact us to find out more.