Is Love Blind? You'll need a cohabitation agreement.

 

Many couples who are not married, or in a civil partnership, still own properties together and do so purely based on love, trust and with the sheer hope that things do not go wrong!

Whilst we do not wish to dampen the thought of Cupid’s hard work, having an arrangement in place with your partner could protect you from additional heartache, stress and costs if the relationship breaks down.

What is a Cohabitation Agreement

A cohabitation agreement records the arrangements between two or even more people who have decided to live together, as a couple or otherwise. It sets out each party's rights and responsibilities in relation to the property where intend to live together.

The agreement can also set out the financial arrangements between them, both during and following cohabitation and the arrangements to be made if they decide that they no longer want to live together or in the event their relationship breaks down.

Having a cohabitation agreement can avoid the cost of litigation in relation to the cohabitee’s respective beneficial interests within the property they jointly owned/ lived in. See our Article ‘Ownership following a Relationship break up!’ for further information on claims under TOLATA.

The agreement can also detail the ownership of personal property (such as cars, furniture or other items within the property). This would allow both cohabitees to enjoy their use when they live together but are to be retained by the owner if the cohabitation ends. 

There are many advantages of entering into a cohabitation agreement:

• It confirms, clarifies and protects your financial interests
  
  
• It preserves your assets
  
  
• It allows transparency
  
  
• It allows flexibility and freedom to deal with your finances
  
  
• It saves future litigation costs.

 

Madhvi Panchal of our Dispute Resolution Team, explains:

“Cohabitation agreements are not only for romantically involved couples and can be beneficial for those who have decided to pool together their financial resources and purchase a property to live in or rent. They are also applicable where properties are owned solely by one cohabitee, or by two parties in equal or inequal shares. The cohabitation agreement can be put into place at any time before the parties begin living together or after cohabitation has begun.”

We are currently offering a discounted fixed fee meeting, so get in touch with our Dispute Resolution Team to discuss your personal circumstances.

Madhvi Panchal, Solicitor, Dispute Resolution
mpanchal@lawson-west.co.uk

 

 

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