A cohabitation agreement is a written agreement between an unmarried couple who live together, or plan to live together. It explains how they want to deal with money, property and practical arrangements during the relationship and if the relationship ends.
The agreement can cover things such as who owns the home and in what shares, how the mortgage or rent and household bills will be paid, how savings, debts, personal belongings and joint accounts will be dealt with, and what should happen if one person wants to sell the property or buy the other person’s share. It can also be used alongside other documents, such as a declaration of trust or a will, where appropriate.
A cohabitation agreement is especially useful for unmarried couples because living together does not create the same financial rights as marriage or civil partnership. If the agreement is properly prepared, it can help show clearly what both people intended. It may also be legally enforceable as a contract, as long as the usual contract requirements are met. This means both people should enter into it freely, the wording should be clear, and each person should ideally receive independent legal advice before signing.
