In the same week that the legal age of marriage was changed to 18, a new study found that marriage is ‘going out of fashion’. More couples are choosing to live together without tying the knot. This has several legal implications if a cohabiting couple splits. That’s why cohabitation agreements are more crucial than ever.
What is a cohabitation agreement?
A cohabitation agreement is a legally binding agreement between an unmarried couple who live together in a relationship, or otherwise, which sets out the arrangements for:
A cohabitation agreement can be made at any time. It is recommended that you get one before moving in together.
Marriage going out of fashion makes cohabitation agreements crucial
It’s a common mistake to think that cohabiting couples have the same rights as those who are married or in a civil partnership – they don’t. Nevertheless, fewer couples are marrying.
According to a study by the Office for National Statistics (ONS), the number of adults who have never married or been in a civil partnership has increased every decade from 26.3% in 1991 to 37.9% in 2021.
The trend is most noticeable among 25 – 29 year olds. 73.9% of people in this age group chose not to get married or be in a civil partnership in 2011, rising to 84.2% in 2021.
Meanwhile, the number of people cohabiting in the UK in 2021 reached 3.6 million, representing a 144% rise compared with 1996 when around 1.5 million people were cohabiting.
The decline in numbers getting married or entering a civil partnership, combined with a rising number of people living together unmarried, means cohabitation agreements have become more important.
5 benefits of cohabitation agreements
Having a cohabitation agreement if you are unmarried covers you if:
- You and your partner end your relationship
- You or your partner become seriously ill
- You or your partner dies
Because you have no automatic legal rights when you’re unmarried or not in a civil partnership, a cohabitation agreement offers the following benefits:
#1 – Establishes entitlements
If you live in a property owned by your partner, you have no legal rights, even if you help pay the mortgage and bills. If you own a property jointly, your ownership might be assumed to be 50:50 when in fact it’s 60:40 in your favour.
A cohabitation agreement establishes who is legally entitled to what should your relationship end, making sure that no one feels unfairly treated.
#2 – Simplifies the separation process
Splitting up is devastating enough. Throw on top of that an argument over who gets what, makes the situation worse. A cohabitation agreement makes each partner’s rights and responsibilities clear. This reduces the risk of falling out over financial matters and other issues.
Plus, a cohabitation agreement prevents the need for any legal action to resolve disputes. This makes separating that little bit easier, faster, and cheaper.
#3 – Protects your future and your children’s futures
If you’re unmarried or not in a civil partnership, you have no legal right to a financial settlement or maintenance payments should your relationship end. This can be a problem if you have been financially dependant on your partner, especially if you have children together.
A cohabitation agreement allows you to specify a financial settlement and child maintenance payments if you and your partner do split. This means you can protect you future and the future of your children.
#4 – Reduce the risk of conflict when living together
A cohabitation agreement is not only for the end of a relationship, it can also prevent conflict when you are living together. An agreement can be made stating how much each party will contribute to the mortgage, bills, and other living expenses. If this is agreed upfront, it can prevent arguments in your relationship because everyone knows what’s expected of them.
#5 – Saves you money
Getting embroiled in a legal battle following a split is the last thing you want, especially if you’re unmarried or not in a civil partnership. Pursuing what you think you are entitled to, without any legal grounds, will cost you a fortune.
Having a cohabitation agreement will cost you less. Plus, it prevents any legal action in the first place.
