With cohabitating couples representing the fastest-growing family type in the UK, an increasing number of those who have chosen not to marry are turning to cohabitation agreements to provide certainty and protect their financial future.
What is a cohabitation agreement?
A cohabitation agreement is a document for unmarried couples living together which outlines what would happen to property, assets and finances if the relationship ends. It can also make provision for how the finances are to be shared throughout the course of the relationship.
What can a cohabitation agreement include?
- Property ownership: specifies who owns the home, contributions to mortgages, deposits, bills and renovations and what will happen to it in the event of a separation
- Children: if you have children, the agreement may include provisions for financial support, living arrangements and parental responsibility
- Debts: outlines who will be responsible for paying any debt, such as credit cards or loans, acquired during the relationship
- Personal assets: states how items such as cars, furniture and valuables will be divided
- Financial provision: includes joint bank accounts and savings and how the sum of these would be split
- Pets: some couples may choose to include details about shared pets and pet care provision
Are cohabitation agreements legally binding?
As long as they are drafted correctly, signed as a deed and entered into freely, cohabitation agreements are generally considered binding. Both parties must be transparent about their finances, and it’s recommended that you seek independent legal advice to make sure the agreement is fair, in both parties’ interests, and contains sufficient clauses and information to stand as a valid agreement.
Cohabitation reform: what should cohabitating couples expect?
The Government has said it will launch a consultation on cohabitation reform in 2026, which centres around strengthening the rights of unmarried couples. Whilst the nature and timing of reform is not yet clear, it is expected to focus on greater protections for the financially weaker party, and in particular, any children, who are often disproportionately disadvantaged by the lack of legal protection, and the division of property rights.
As changes remain uncertain, cohabitation agreements are more important than ever for those who want clarity and certainty when it comes to their personal arrangements.
How to create a cohabitation agreement
At Hill and Company, we can help you to create a cohabitation agreement that meets all of the criteria to be considered legally binding.
Each agreement is unique to the couple, but we will discuss the value of your assets, including savings, pensions and investments, if you rent or own a property and whose name it is in, earnings and whether you have children.
If you don’t have a Will, it is advisable to create one at the same time so that your position is equally protected in the event your cohabitating partner dies. Our specialist Wills team works alongside our family law solicitors to ensure that your wishes are protected when it matters.
Can a cohabitation agreement be changed?
It’s advisable to update a cohabitation agreement following any significant life changes, such as the arrival of a child, moving abroad or purchasing a property. At Hill and Company, we can help you make changes to ensure your agreement remains legally effective and adaptable to your circumstances. If you choose to get married at a later date, a cohabitation agreement can be changed into a prenuptial agreement.
Protecting your future
Putting a cohabitation agreement in place provides peace of mind for couples who do not benefit from the legal protection that spouses do. As more people choose not to marry and with reform still some way off, cohabitation agreements will continue to be key for couples who want to protect their interests from the outset and avoid disputes should the relationship come to an end.
If you would like advice on cohabitation agreements, get in touch with our team to find out how we can help.
