When you move in together the last thing you want to think about is drawing up a legal document such as a cohabitation agreement.
But if you split up, you won’t have the same rights as a married couple and you could end up with nothing. So it’s even more important that you make one.
It's an essential financial agreement for all cohabiting couples. Find out more on how unmarried couples can draw up a cohabitation agreement:
Discuss with your partner why you want one. Most cohabiting couples draw up an agreement to record their financial obligations towards each other.
List your assets, liabilities and income with your partner so that you both have an accurate picture of each other’s finances before your draw up your cohabitation agreement.
Show each other your assets, liabilities and income details and be honest about how you want to arrange your domestic finances. This will form the basis of your cohabitation agreement.
Decide with your partner who will pay the outgoings (electricity and water bills, etc.). How will home repairs and improvements be funded? You can put this in your cohabitation agreement.
If you are going to buy property together, you need to decide how you are going to own it. Speak to your conveyancing solicitor for advice.
If you own property, you need to decide in what circumstances the home will be sold? If the home was bought in your partner’s sole name and the proceeds of sale are to be divided between you, you should first seek legal advice to ensure that your interest is put on the title deeds; otherwise your partner could sell the home without your knowledge.
Decide whether you will have a joint account and how it will be operated. Will you have joint credit cards?
You should both make a Will. Remember if you don't make a Will, then your cohabiting partner will get nothing when you die!
Draw up an agreement using Lawpack's cohabitation agreement template.
Sign the cohabitation agreement and insert your full names in the presence of an independent witness, who should also sign and include their full name and address.
If anything significant happens in your relationship such as the birth of a child; one of you becomes seriously ill; one of you becomes disabled; one of you is made redundant; your financial circumstances change or one of you receives a large inheritance, then you need to revise your cohabitation agreement.
Published on: July 12, 2011