Cohabitation Agreements: What Happens When Unmarried Couples Separate?

In the UK, more and more couples live together without marriage or a civil partnership. Yet many do not realize that, as opposed to married couples, they are not well protected by the law in the event that their relationship does not work. This is where a cohabitation agreement can prove priceless.

But what is a cohabitation agreement, and what happens when a couple who are not married splits up?

What Is a Cohabitation Agreement?

A cohabitation contract is a binding contract which specifies financial and property arrangements between unmarried partners living together. It gives clarity on:

•Ownership and split of property
•Payment of household bills
•Money in case the relationship breaks up
•Responsibility for children
•Other personal issues, such as ownership of pets

Having it ensures disputes may be avoided and expensive court action in case the relationship breaks down.

Property Rights for Unmarried Couples:

Unlike married couples, cohabitees do not have automatic legal rights in each other’s property. If you are living in a house which is owned entirely by your partner, you do not have a legal right to it unless you can establish a beneficial interest, typically by showing financial contributions to the mortgage or substantial improvements to the property.

If it is held jointly, the law under which it is held (as joint tenants or tenants in common) controls how ownership is divided up on split-up:

•Joint tenants: Both of them hold equal portions, and if one of them dies, his portion automatically vests in the other.

•Tenants in common: Both partners own a given percentage, and their share can be left to someone else under a will.

A cohabitation contract can establish these rights to ownership beforehand, minimizing the possibility of conflict.

Financial Support Upon Separation:

Unlike married people, there is no law compelling one cohabiting partner to provide financial support to the other upon separation. This implies that if one of the partners had been financially dependent on the other throughout the relationship, they could find it hard after the break-up.

The only exceptions are:

•Where there are children, in which event the main care taker can be entitled to child maintenance through the Child Maintenance Service.

•Where one partner has contributed financially to an extent that it might support a legal claim based on constructive trust or proprietary estoppel principles.

Read Also: Prenuptial Agreements: Safeguarding Your Assets Pre-Matrimony

What Happens to Shared Assets and Debts?

When a couple who live together breaks up, the splitting of jointly owned property, like savings, vehicles, or investments, can be complicated. If assets were bought in one partner’s name, the other has no automatic right to them. But if the asset was bought jointly or both partners paid for it, they might have a claim.

Debts are another issue. If both parties are both listed on a loan or mortgage agreement, they are still jointly liable, even if one party ceases to contribute after the break-up. A cohabitation agreement can outline how debt will be apportioned to avoid future disagreements about finances.

What about Children?

Unmarried parents retain rights and responsibilities over their children. Parental responsibility automatically belongs to the birth mother, but for the father, only if:

• They are included on the birth certificate (for children born after 1 December 2003 in England and Wales).

• They have acquired parental responsibility by formal agreement or court order.

On separation, children’s arrangements for residence and maintenance should be agreed between both parents. Where disputes occur, mediation or family court intervention may be required.

How a Cohabitation Agreement Can Help:

A properly drafted cohabitation agreement can:

•Precisely define ownership of property and contributions to money.

•Define how joint debts and assets are to be divided.

•Define financial support arrangements (if necessary).

•Define child-related obligations.

•Reduce the likelihood of costly court fights.

It is advisable to have a solicitor draw up or review the agreement to make it legally enforceable and fair for both partners.

What Happens If There Is No Cohabitation Agreement?

If there is no cohabitation agreement, a separated unmarried couple may be left in limbo under the law. If they have issues over property, cash, or children, they may have to go through costly court action in order to resolve them.

Potential legal routes involve:

•Applications under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA): When one partner feels they have an interest in a property, even though they are not a legal owner.

• Child maintenance claims: Where child support is not given voluntarily.

• Unjust enrichment or proprietary estoppel claims: Where one of the partners has made a financial contribution in such a manner that there is a reasonable expectation of joint ownership or benefit.

Unmarried couples in the UK lack equivalent legal rights to married couples on separation. Cohabitation agreement is an important document to safeguard both parties’ interests, giving clearness and minimizing the chances of conflict.

Getting legal advice while creating this agreement can add an extra layer of protection and reassurance. If you are cohabiting or intending to live with a partner, consider establishing an agreement to secure your future.

Conclusion:

Unmarried partners in the UK are not legally as protected as married couples in the event of a split-up. A cohabitation contract is an essential safeguard to guard both parties’ interests, clarifying matters and minimizing the possibility of conflict. Taking legal counsel when preparing the contract can further ensure security and reassurance.

If you’re living together or about to live together, you may want to establish an agreement to secure your future.

For further advice please get in touch with our team today by calling 020 8538 0182 or +44 7857 809932, or you can email us on [email protected].

Please note these blogs are to enhance your knowledge and are not tailored advice, for specific advice please get in touch with our outstanding team.