Couples are increasingly making a decision to live together without marriage. Yet there is still a common misunderstanding that a couple who have been together for a period of time have established a “common law marriage.” However, this is a total myth. Legally, there is no such concept as a "common law marriage". Should the relationship come to an end, one of the parties could be left in a very vulnerable position financially. Even though the parties may have been in a relationship and living together for many years, one party may find at his or her cost, to be in a very weak position and has limited and sometimes no claims against the other party’s assets.
This is why it is so important that whenever a couple cohabit that they should enter into a Cohabitation Agreement. A Cohabitation Agreement is a contract which sets out each party’s rights and obligations to each other and if properly concluded, the Agreement is likely to be legally binding. It can give you security and peace of mind.
A Cohabitation Agreement can be tailored to deal with the specific financial issues which are relevant to the needs of the couple concerned. For example, the Agreement can deal with the family home. It can define the contributions made by each party towards that property such as payments towards the purchase price, the mortgage and any improvements. It can define the relevant shares in the property and establish also how this might alter in the future should there be any change in the parties’ financial circumstances. The Agreement can determine what is to happen to the family home or any other property should the parties’ separate. It can decide who should leave the property. It can determine what should happen to the contents of the property and to pets.
When a couple separate it is often the case that things can become extremely emotional and stressful, even about issues such as the parties’ pets. It has been reported that more and more dog owners are considering signing Cohabitation Agreements (where they are married, Pre Nuptial Agreements) in order to avoid custodial “battles” over these issues. It has been reported by some estranged couples that the loss of a pet is worse for them than the actual breakup of the relationship with their partner.
Some couples who separate engage in costly litigation over the contents of the home which were of considerable sentimental value to them. They do this also at a cost considerably disproportionate to the monetary values of the items concerned. A properly prepared Cohabitation Agreement can avoid this.
The Agreement can deal with issues such as confidentiality, for instance preventing one party disclosing embarrassing/harmful information or photographs via the internet to others on their separation. A Cohabitation Agreement can make provision upon death and provide for the nomination of pension and death-in-service benefits. It can provide for the ownership of items purchased from funds from a joint account or credit card and what should happen to them in the event of separation. It can deal with business interests. There are numerous other types of provision that can be included in a Cohabitation Agreement.
Couples starting out together should therefore instruct a Solicitor who is well experienced in drafting Cohabitation Agreements to prepare one which will be legally binding and suitable for them, in the event that they might separate.
The family law department at Winston Solicitors can offer a professional discrete service to our clients in drafting such Agreements. Talk, in confidence, to the family team on 0113 320 5000 or email family@winstonsolicitors.co.uk
