Are you and your partner planning to move in together? If so, you may be concerned about how you can best protect yourself financially.
Couples that are not married, but want to live together can benefit from a Cohabitation Agreement. A Cohabitation Agreement helps to prevent financial issues arising further down the line. At Jordans Solicitors, our expert cohabiting solicitors will help to protect you financially, by putting together a Cohabitation Agreement that meets your individual needs.
What is a Cohabitation Agreement?
A Cohabitation Agreement sets out, in detail, the financial arrangements of your relationship, and is a legally-binding document. While married couples and couples in civil partnerships are protected by laws that guide financial arrangements and the division of assets when they separate, the same is not currently true for cohabiting couples. It is for this reason that Cohabitation Agreements perform an essential function.
A Cohabitation Agreement prevents issues and disputes arising between you and your partner regarding your finances and any assets that you may have. Cohabitation Agreements clearly state the arrangements and responsibilities for each of your finances. The Agreement ensures there is no room for misinterpretation that may cause problems in the future.
A Cohabitation Agreement can cover many financial matters, including:
- Who is required to pay each bill
- Who pays for the upkeep of the property
- What proportion does each partner pay towards the rent or mortgage on the property
- What portion of the property does each partner own
- How will the property be divided if the couple separate
- How will a shared bank account be used
- Who will cover debts that may be incurred while cohabiting
- How will each partner’s assets be protected
When Should a Cohabitation Agreement Start?
Ideally, Cohabitation Agreements are best drawn up before you begin cohabiting. Entering into a Cohabitation Agreement from the very start will ensure that both parties are clear on where they stand in legal and financial terms.
If you are already living with your partner, it is not too late to put a Cohabitation Agreement in pla