What it is
A cohabitation agreement is a written agreement between two people who live together without being married or in a civil partnership. It records what you've agreed about money, belongings and debts, and what should happen if you separate.
It's sometimes called a living together agreement. It's a contract between the two of you, signed by both.
Why unmarried couples need one
When a married couple divorces, a court can divide everything fairly and order one to support the other. Unmarried couples get none of that. If you split up, the law looks at who owns what, not what would be fair, and there's no maintenance between partners however long you've been together.
That surprises a lot of people. There's no such thing as common law marriage in England and Wales, and living together for 10 or 20 years doesn't change it. Our guide to unmarried couples' rights explains what does and doesn't apply.
What goes in one
- If you rent, whose name is on the tenancy, who pays the rent and who moves out if you split. If you own, the shares are better recorded in a declaration of trust.
- Whether you have a joint account, and who pays which bills in what proportion
- What each of you owned before you moved in, and how things you buy together are split. Gifts and inheritances usually stay with whoever received them.
- Debts: each of you is normally responsible for your own, with joint debts shared as you agree
- Who pays for what for any children while you're together. It can't override child maintenance or a court's decisions about children.
- Who keeps the car and the pets
- What happens if you split: how much notice, who moves out, a timetable for dividing things, and trying mediation before court
- When you'll look at it again, for example if you have children, buy a home or marry
It should also list what each of you earns, owns and owes. Being open about your finances is one of the main things a court looks at if the agreement is ever questioned.
Is it legally binding?
It can be. A cohabitation agreement is a contract, so the courts will generally hold you to it if:
- you both told each other about your finances honestly;
- you both signed it freely, without pressure;
- you both understood what you were agreeing to, ideally after the chance to take legal advice; and
- it isn't obviously unfair, especially if circumstances have changed a lot since you signed.
It's not a guarantee. A court can set aside an agreement that was rushed or one-sided, and nothing in it can stop a court making orders about children. Keeping it up to date makes it much stronger.
Who needs one most
- Couples where one partner earns much more, or has much more savings
- Couples where one partner owns the home and the other moves in
- Couples with children, or planning them, where one partner might cut their hours
- Anyone moving in with savings, property or a business they want to keep separate
If you've only just moved in and keep your money separate, it may not be urgent yet. A short agreement now is still easier than an argument later.
Cohabitation agreement or declaration of trust?
If you own or are buying a home together, start with a declaration of trust. It deals with the home, which is usually the biggest thing you share, and it's signed as a deed so it carries more weight. A cohabitation agreement then covers everything else. Our comparison sets out which does what.
Don't forget a will
A cohabitation agreement says nothing about what happens when one of you dies. Unmarried partners don't inherit from each other without a will, so make one each. You can do that online with PureWill.