Moving in with someone can feel so exciting.  Whether it is with your romantic partner or best friend. Amongst all the excitement, it is not often that you want to think about the possibility of your cohabitation arrangements coming to an end. However, taking this step to protect yourself can you save you from long, costly and stressful court proceedings later.

If your marriage or civil partnership break down, the parties will continue to have financial responsibilities for each other. Did you know that these financial responsibilities are very different if you are not married to your partner.

It seems there is a lot of false information regarding cohabitee ‘rights’.  They are vastly different to those of a marriage or civil partnership. No one wants to think about a break down of a relationship. But protecting yourself against such a scenario can benefit you a in the future.

It can be difficult to talk about money, property and capital assets at the start of a new relationship. The fear often is that by discussing this with their new partner, should the relationship break down, they are showing a lack of commitment to the relationship. However, it really is a worthwhile discussion to help protect all parties.

What is a cohabitation agreement

A cohabitation agreement is a written document setting out the agreement reached by two (or more) people, who have decided to start living together. It sets out the arrangements during, and at the end of the relationship.

A cohabitation agreement will usually record the agreement about the ownership of land and of personal belongings both now and in the future. As well as the payment of bills and living expenses during the relationship.

If you and your cohabiting partner are buying property together, you should have decided whether you will hold that property as joint tenants, or as tenants in common. If you hold the property as tenants in common, your conveyancer will advise you how the shares of the property are recorded.

But a cohabitation agreement can also include:

– Who is going to pay the mortgage payments?

– Who is going to pay the utility bills?

– When will the property be sold?

– What will happen if you cannot agree whether the property needs to be sold?

– Will there be any special arrangements for the sale?

– What if you one of you wants to buy out the other?

Although you may wish to record your agreement about your financial obligations for your children, remember that you continue to have responsibility for your dependents whether you stay together as a couple or not.

The court can make decisions about property at the end of a cohabitating relationship. But such court applications are time consuming, costly and stressful. Also the outcome cannot be guaranteed. By setting out in advance what will happen if the relationship should end, you have saved yourself the time, expense, anxiety and uncertainty of contested court proceedings.

It is therefore advisable to seek independent legal advice before making decisions regarding cohabitation.

For more information on this or any Family Law matter please get in touch with us today – familyenquiries@fsmsolicitors.co.uk or call 01225 755621