What to put in a Cohabitation Agreement
Let us say that you are looking to move in with your partner and you have received some excellent legal advice that you should have a Cohabitation Agreement.  What should go into that Agreement and what sort of discussions should you have about it?

If I am presented with a client who says they do not feel comfortable talking about money with the person that they are going to set up home with I have been known to suggest that they should reconsider whether they should be entrusting their future emotional happiness never mind financial security with that person.  Talking about practicalities and how the household going to be run are, in my opinion, healthy and appropriate discussions to have even whilst the fuzzy lovey dovey period still exists.

There is no magic formula for a cohabitation agreement but both parties must intend it to be a legal agreement and for that reason it has got to be fairly precise.  If either party commits fraud; duress or undue influence then the agreement is probably not worth the paper it is written on. 

If the Agreement is horribly unfair to one person then it probably will not be supported in the Courts unless there are some exceptional reasons which justify apparent unfairness in which case they should be detailed in the Agreement.

Matters than can be included in a Cohabitation Agreement include:-

1.    Do you intend to buy a house?  If so what do each of you expect to contribute towards the house, both so far as initial capital and running costs are concerned?

2.    Will you hold the property as Joint Tenants? Or, more probably, Tenants in Common in equal/unequal shares?

3.    If unequal shares what percentages should apply? And are those likely to be altered over the years to come? For example if one person gives up an earning capacity to have children.

4.    What happens if one person loses their job and cannot make their agreed contribution?

5.    What happens if one party perhaps receives an inheritance and is able to pay off part of the mortgage or pay for substantial improvements?

6.    What about contents and personal possessions?  In the event of the relationship breaking down would you want to protect items of furniture that may have been used in the house but are of special emotional value to you?

7.    What happens if one of you dies?  If the property is not owned as Joint Tenants are you going to allow the surviving party to live in the property for a period of time or inherit the whole house?

8.    Should there be any joint bank accounts if so what proportions should each party contribute and what should be paid out of that joint account?

9.    How should the purchase of cars be funded?   In whose name should the car be registered?  If you are fortunate to own other property or have special belongings, are they to be kept out of the relationship and joint finances?

All these things should be committed to writing as clearly and simply as possible.  If you do agree to keep part of your finances a secret from each other then do record that fact by stating that you have agreed not to investigate each others whole financial position, only to regulate that portion that is going to be committed to the relationship

As always, if you properly and fairly record in writing your agreement then it is likely that you will avoid expensive and bitter legal arguments at a later stage in the unhappy event of your relationship breaking down.

If these or any other issues relating to family breakdown are problems for you please contact us on 01423 858582 or This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
 
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