What is Cohabitation?
Cohabitation refers to the living arrangement where a couple choose to live together without getting married. Cohabitation has become increasingly common and is the fastest growing family type in England and Wales.
According to recent statistics there were 1.5 million cohabitating couples in 1996. By the year 2021 the number had increased to 3.6 million. People choose to cohabit for various reasons including: financial considerations, convenience, testing their relationship before marriage or personal beliefs. Some couples perceive cohabitation as a step towards marriage, while others prefer to maintain a long-term committed relationship without formalising it legally.
The misconception of ‘Common law marriage’
With cohabitation continuing to increase it is important to be informed of the legal implications and potential risks of cohabitation. Many couples make the mistake of assuming if they have been living together for a long time then they have the same rights over finances and property as married couples and believe they have a “common law marriage“. In England and Wales there is no such thing as a “common law marriage” regardless of the length of relationship or children.
Worryingly, 48% of the general population still hold the belief that they are protected and they have the automatic right to claim against their partners finances/properties/ or assets upon or after the relationship has ended. This is a common misconception which can have a negative impact upon your future living and financial arrangements after ending a cohabitating relationship.
Why do cohabitating couples not have the same rights as married couples?
Simply put, they are not legally recognised as a couple, making it very difficult to claim a share in the family home or your partner’s finances if you separate.
What is a Cohabitation Agreement?
The purpose of a Cohabitation Agreement is to establish the rights, responsibilities and expectations of both parties in the relationship. It typically covers various aspects of your and your partner’s lives including finances, property ownership, division of assets and debts, and issues relating to your children if applicable. This type of agreement is tailored to each individual couple and therefore takes into account the needs and circumstance of that specific couple.
Why should you get a Cohabitation Agreement?
As mentioned earlier, people make the assumption that if they have been in a relationship for a certain length of time they are in the same category as those who are married believing they have rights in terms of claiming properties, finances and assets against their partner. This is not the case. There is little protection for cohabiting couples however a Cohabitation Agreement provides you and your partner with clarity and legal protection in regards to your finances and living arrangements.
1. Clarity and protection
A Cohabitation Agreement is a legally binding document that clarifies the rights and responsibilities of each partner in the relationship. Cohabitation agreements go beyond asset division. They allow couples to define their rights and responsibilities within the relationship, that set clear expectations of each partner and invaluable peace of mind for both parties.
2. Protecting your assets.
Discussing finances and asset division is crucial for all cohabiting couples. A Cohabitation Agreement allows you to clearly outline who owns what and how assets will be divided in the event of ending of the relationship. This ensures you are both protected and prevents unnecessary conflicts.
3. Safeguarding children’s interests
For couples with children from previous relationships or those planning to have children together, a Cohabitation Agreement can provide vital protection. It allows you to outline important matters concerning your child/children’s well-being. By addressing these issues in advance, you can minimise potential conflicts and ensure that the best interests of the children are prioritised.
4. Tailored to your circumstances
A Cohabitation Agreement is tailored to fit your personal situation and preference. It allows you to establish guidelines for you and your partner, this ensures that you and your partner both have a fair and equal say in important matters.
It establishes a solid foundation for your relationship by addressing important matters. Every relationship is individual and a Cohabitation Agreement is tailored to suit your needs and circumstance so take the necessary steps to protect yourself and your partner in your cohabiting relationship.
Contact us
It is important to speak with a family law solicitor if you are considering entering a Cohabitation Agreement as our solicitors provide clarity, protection and peace of mind for both parties and ensure the agreement is tailored to your circumstances.
Contact us today for our 30-minute initial consultation to help you get the supportive advice you need.