Moving in with your partner is such an exciting time in your life. You are ready to embark on a new journey together, turning a house into a home and building a life together.

No doubt, this next step in your relationship came after much careful thought and consideration. But have you thought about how you will protect your financial interests should the relationship break down?

While this may seem very morbid during what should be a special time, it’s a crucial topic which shouldn’t be ignored. Essentially, there is no UK law to determine the fair distribution of an unmarried couple’s assets. This is why we always advise couples to draw up a cohabitation agreement while living together outside of marriage.

What happens if I don’t have a Cohabitation Agreement drawn up?

Without sounding dramatic, couples who live toegther without a cohabitation agreement are putting themselves financially at risk.

Contrary to popular belief, there is no such thing as a ‘Common Law’ husband / wife. Whether you have lived together for two weeks, or two decades, the relationship of an unmarried couple is not legally recognised and no financial rights are accrued.

Despite cohabitating couples representing the fastest growing family type in England and Wale, current UK laws leave cohabiting couples with ‘inferior’ protections to those who have formally married or have obtained a civil partnership.

A group of cross-party MPs is demanding reforms to offer better protection to those cohabitating. But as it stands, the risks faced by a potential relationship breakdown or the death of a partner are significantly higher for unmarried couples who live together. Essentially, the financially weaker partner has no automatic rights to the family home.

So, what is a Cohabitation Agreement and how can it protect me?

Thankfully, you do have options when cohabitating to ensure your financial interests are protected. Drawing up a cohabitation agreement can protect your interests, provide certainty, and should not harm your relationship if you approach it in the right way.

Rather than looking at the agreement as a gloomy prediction that the relationship will ultimately fail one day, you should approach it in a positive light as the process can strengthen your relationship. You can use the preparation of drawing up an agreement to discuss key issues and decisions in your lives together.

The agreement should include each partner’s rights in relation to the property you live in, the cars you drive, and equally who has responsibility for certain debts. The agreement can also outline how you will meet living expenses while you are living together. If you have children, the agreement can also address this.

Get in Touch

As family law specialists, we can walk you through the process and help to put your mind at ease as you approach this new chapter in your life.

If you require any further assistance from a legal representative, please do not hesitate to get in touch by calling 0161 402 0213 or you can visit the Family Law section of our website.