Unmarried Cohabiting Couples Are Left High And Dry By The Law

10th May 2021

If I had a pound for every time an unmarried couple refers to a set period of time they have been living together as a relevant fact in respect of their legal position I could retire  

“Common law marriage” “common law husband” or “common law wife” do not exist and it never has existed so I am at a loss to understand how people could assume otherwise.

It does not matter if you have been living together 1 month, 1 year or 30 years or you have children together you do not have the same protection as a married couple does, which can seem unfair

The reason for this is that the law does not recognise this living arrangement because the couple hasn’t entered into a legally recognised relationship such as marriage or a civil partnership

If you want some degree of legal protection you need to enter into a Cohabitation Agreement. Granted it is not sexy, but neither is house or car insurance, yet we still have these

The purpose of a Cohabitation Agreement is to provide both parties with a level of protection in case the relationship doesn’t last or if one of the couple passes away suddenly It regulates the basis on which you will live together and sets out what will happen if you decide to separate

The Agreement is drawn up as a Deed and needs to be signed and witnessed by both parties, ideally, after each party has received independent legal advice on the document to ensure the court will uphold the document if a dispute arises at a future date It usually covers:

Who owns and owes what at the time of the agreement and in what shares

The financial arrangements that you have agreed upon whilst you are living together

Future events that may or may not change the shares you own property, assets and debts etc and/or may change the ongoing financial arrangements you have agreed

How property, assets and income should be divided if you decide to separate; and

The mechanics of how you will separate your finances and property on separation

Timing

You can enter into a Cohabitation Agreement any time before or after you start living together

What are the risks of not having a Cohabitation Agreement?

Unlike couples who are married and decide to divorce there is no particular set of rules that automatically apply when unmarried cohabiting couples separate. The lack of legal protection can result in one or both parties exposed to unfairness and financial hardship.

Disputes over properties can be very expensive and lengthy.

What are the advantages of a Cohabitation Agreement?

A properly drafted Cohabitation Agreement can save you thousands of pounds in legal fees, the uncertainty of lengthy litigation as well as stress

Is a Cohabitation Agreement different from a Deed or Declaration of Trust?

Yes, a Deed or Declaration of Trust which you can have drawn up by your property lawyer if you are buying a property jointly is merely a legal document recording only the shares you hold your joint property in.

It does not cover what will happen if one party later injects cash into the property from an inheritance or redundancy or the arrangements should you later have children It won’t cover who pays for what or what is to happen when one party cannot afford to contribute to the mortgage

Nor does it cover who has the first option to remain in the property or the mechanics of a sale or buy out or how the contents are to be divided or who shall retain a family pet.

A Cohabitation Agreement may allow you to nominate your partner to receive any pension benefits, which they may not otherwise be entitled to, although the rules of the pension scheme will need to be considered

How often should review my Cohabitation Agreement?

Definitely if you move house or you have children.

Also, if you inherit money or receive a windfall or redundancy payment or your circumstances changes significantly

In addition to a Cohabitation Agreement, you should both also make a Will to make sure that if your partner is provided for in the event of your death. The absence of a will death of one partner can in the case of unmarried couples leave a partner exposed to financial hardship and could also result in them losing their home Don’t leave your future financial security to chance.

Make sure you and your partner are both financially protected in case your relationship doesn't work out as you planned.

If you would like more information on how you can protect yourself and your loved one, then get in touch to arrange a chat

Sarah

The content of this article is intended for general information only to the subject matter. Specialist legal advice from a family law specialist should be sought about your specific circumstances

 

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