Moving in with a partner is a very exciting step in any relationship and parents are often keen to help their children to achieve this independence. This ‘help’ can take many forms and may include giving money to use as a deposit to buy a property or offering an available property for a couple to live in. Taking advice to ensure this help is protected is always sensible and for the couple themselves, having a full understanding of the legal consequences of living together is vital to plan and avoid an unwitting legal situation.
In England and Wales, unmarried couples who live together do not have the same legal rights as married couples, regardless of how long they have been in a relationship. Many people mistakenly believe in the concept of “common law marriage,” but in reality, cohabiting partners have very limited legal protection if they separate. This is where a cohabitation agreement becomes essential.
A cohabitation agreement is a legally recognised document that sets out financial and property arrangements between unmarried couples who live together. It outlines responsibilities during the relationship and provisions for what happens in the event of a separation. While these agreements are not automatically legally binding, they can be enforced by the courts if they meet specific legal criteria.
Protecting farm properties with a cohabitation agreement
For farming families, protecting property is particularly important when children live with their partners in homes situated on family-owned farmland. Without a legal agreement in place, a breakup could lead to disputes over ownership or occupancy rights.
How a cohabitation agreement helps farming families
- Prevents property claims – If a child’s partner lives in a farmhouse or cottage on the family farm, an agreement can ensure they have no claim over the property if the relationship ends.
- Clarifies financial contributions – If the non-owning partner contributes to renovations or maintenance, the agreement can specify whether this gives them any financial stake in the property or can expressly rule this out.
- Protects generational farming businesses – Avoids complications in succession planning by ensuring that farm properties remain within the family.
- Reduces legal disputes – A cohabitation agreement can prevent costly legal battles over farmland and agricultural properties.
Farming families should consult a solicitor to ensure their agreements align with their estate planning and business succession strategies.
What is a cohabitation agreement?
Cohabitation agreements provide security and clarity for couples who choose to live together without getting married or entering a civil partnership. Key benefits include:
- Clarifying financial responsibilities – Specifies who pays for what, including rent, mortgage contributions, and household bills.
- Protecting individual assets – Ensures that any property or assets owned before the relationship, or gifted by one person’s parent remains protected and
- Outlining what will happen from a practical point of view in the event of a separation- this can include provisions for who should move out of the property and when or when a property should be sold.
Are cohabitation agreements legally binding in England and Wales?
Cohabitation agreements properly entered into provide very strong evidence of the parties intentions which can be determinative in any case. They can be upheld by the courts if:
- The agreement is made voluntarily and without coercion.
- Both parties have received independent legal advice before signing.
- Full financial disclosure has been provided.
- The agreement has been executed as a deed.
If these conditions are met, the courts are more likely to enforce the agreement as a legally binding contract.
Steps to create a cohabitation agreement
- Discuss terms – Partners should have an open conversation about finances, assets, and expectations.
- Seek independent legal advice – Both parties should obtain legal advice.
- Draft the agreement – A solicitor will draft a legally sound agreement tailored to the couple’s needs.
- Sign the agreement as a deed – For legal enforceability, the agreement should be executed as a deed.
- Review and update regularly – Circumstances change, so agreements should be reviewed periodically.
Common misconceptions
- “We have lived together for years, so I have legal rights.” – Cohabiting partners do not automatically acquire rights to each other’s property or assets.
- “We don’t need a cohabitation agreement because we trust each other.” – While trust is important, legal protection ensures clarity and fairness if circumstances change.
- “We provided the deposit to our child”– having an understanding of the implications of gifting and property ownership can be vital to protect gifts made.
- “A will covers everything.” – A will only applies after death, whereas a cohabitation agreement covers both the relationship and potential separation.
- “A declaration of trust is the only thing we need”- whilst crucial to defining ownership shares when a property is co-owned, a cohabitation agreement can cover much more detail than a declaration of trust and can be used where the property is not owned by the couple.
Wrapping up
A cohabitation agreement provides clarity, protection, and financial security for unmarried couples. Whether you are moving in together, buying a home, or living on family farmland, having a legally binding agreement can prevent disputes and safeguard assets.
As a final thought – cohabitation agreements cover the position for cohabiting partners, if the couple get married or are engaged taking advice about a pre-nuptial agreement and to understand the legal consequences of marriage on their particular circumstances is always sensible.
How can Moore Barlow help
For expert advice on drafting a cohabitation agreement, contact our cohabitation agreement solicitors today. Our specialist family law solicitors can help you protect your assets, your family, and your future.
