Side by side
| Declaration of trust | Cohabitation agreement | |
|---|---|---|
| Covers | The home: shares, deposits, mortgage, selling, buyouts | Everyday finances, bills, savings, debts, belongings, pets, what happens on separation |
| Form | Usually a deed, signed in front of a witness | Usually a signed agreement |
| How binding | Courts generally treat it as conclusive about the home | Usually upheld if it's fair and you both understood it, but courts look more closely |
| Best for | Anyone who owns or is buying a home with someone else | Couples living together, whether or not they own |
Which do you need?
If you're buying a home together, start with a declaration of trust. The home is almost always the biggest thing you share, and it's where the law gives unmarried couples the least protection.
Add a cohabitation agreement if you also want to settle things like who pays which bills, what happens to savings you build up together, or who keeps the car.
If you rent together, or one of you owns the home and the other doesn't contribute to it, a cohabitation agreement on its own may be enough.
Can one document do both?
Some cohabitation agreements include property clauses. It's usually cleaner to keep them separate, because a declaration of trust is signed as a deed and has to say exactly how the home is held. Make sure the two documents don't contradict each other.
If you marry
Neither document stops a divorce court dividing things differently. If you plan to marry and want your arrangements to hold, you'll need a prenuptial agreement and legal advice.