For every three cohabitation agreements our family solicitors have handled, they have advised on around fifty financial and property disputes between couples who are splitting up. The process and cost of a cohabitation agreement is much simpler and quicker than a dispute. This article explains what a cohabitation agreement is, and why you should consider one if you’re going to move in with your other half.

Property ownership for unmarried couples

Cohabitation or living together without being married or in a civil partnership significantly impacts property rights in England. Unlike married couples, cohabiting couples generally don’t automatically inherit each other’s property or have the same legal protections regarding property ownership and financial support.

As of the 2021 census , data showed 24% of couples who lived together were unmarried. If they’re not adequately prepared, they’re at risk of long-drawn-out disputes should they split up. Understanding your rights in relation to property ownership, cohabitation and potential legal claims is crucial for cohabiting couples.

Joint tenants vs tenants in common - what's the difference?

Often when a couple decide to embark on their new life together, they will buy a property either in joint or sole ownership. If it is bought in sole ownership it may be because getting credit is difficult for one party or they don’t have enough money to contribute towards the deposit.

If the property is going to be owned by both people in the relationship either as joint tenants or tenants in common, then both individuals have rights. Joint tenants means that they own the property equally and if one dies the other automatically inherits the property. Tenants in common, means that they can own the property in different shares and when one dies they can leave their share to whom they chose.

In other cases, one half of a couple moves in with the other who already has their own property. If only one person owns the property, the other partner has no automatic right to the property if they separate or the other dies. Establishing an interest in the property can be a very difficult and costly thing to do and doesn’t always end the way people hope.

If you want to know more about property ownership types you can read our article which explains the types and benefits and drawbacks of each.

How can you protect yourself when you move in with your partner?

If you’re moving in with a partner, it’s best to get a cohabitation agreement to protect both your interests. It’s important to draw up a cohabitation agreement either before you start living together, or at the time you buy your property. It reassures both parties of their financial obligations and property rights if they were to split up / separate.

What is a cohabitation agreement?

Cohabitation agreements are legally binding documents that outline how property and finances will be handled both during the relationship and if you separate. 

Cohabitation agreements can cover various aspects including property ownership, financial contributions and division of assets. As family solicitors we highly recommend cohabiting couples protect their interest and avoid potential disputes by having a cohabitation agreement drawn up. 

It’s especially important to protect yourself legally because cohabiting couples have less legal protections than married couples, particularly concerning property and financial matters. If a cohabiting partner dies, the surviving partner won’t always inherit the deceased’s property unless it is specified in a will.  If a property is bought under joint tenancy irrespective of a will, upon death the surviving owner will automatically receive the deceased’s partner’s share of the property. This is often unintended and therefore careful consideration must be given to future financial planning whilst buying a house together. 

Occupation rights for cohabiting partners

It is also important to know there are occupation rights which do not always follow property ownership rights. There are occupation rights that might allow the non-owning partner to remain in the family home after the break-up. 

Our family solicitors, wills and probate advisors and property solicitors work together closely to give you comprehensive advice. We’re here both when buying as a cohabitating couple and to plan for the future with a will and cohabitation agreement, so you know whatever the future holds you’re protected.

We regularly draw up cohabitation agreements to protect you in if your relationship comes to an end. If you are planning to marry and you own property, we can help you draw up a prenuptial agreement.

An example of what can happen if you don't have any legal protection as a cohabiting couple

A couple in their late 60’s were separating after one party told the other they no longer loved them, and the relationship was over. The couple had lived together for over 30 years but never married. One person already owned the property, the other had moved in with them. For over three decades life was idyllic, the partner who owned the house took care of the bills, and the other lived there supporting the home, caring for their children and lifestyle. 

However, after the partner wanted to split up, the one who had moved in was left homeless and penniless and without any work history to support them in finding work. Sadly, cases like this are more common than people realise, and protecting yourself at the beginning when things are at their peak is easier than disputing them when they’re broken.

A summary of how you can protect yourself as an unmarried couple living together:

• Agree between you how you will share your finances, so you are both clear about what you’re contributing, this is a great first step to a cohabitation agreement.
• Have a solicitor draw up a cohabitation agreement on your behalf that protects you and your partners financial investment should you split up. This is significantly less expensive than proving your financial contribution after you’ve split.
• If you move in with your other half and they own the property in their name only, this puts you at a significant disadvantage and a cohabitation agreement couldn’t be more important.
• If you buy a property as joint tenants or tenants in common, then you both have rights to the property should the other die. However, this won’t protect you if you split up.

Our family solicitors offer a free 30-minute consultation where you can speak to them about cohabitation agreements between you and your partner. If you’d like to learn more get in touch on 0800 138 0458 or use the form below.