Cohabitation and Separation agreements

Cohabitation and separation agreements

While having a written agreement might seem to go against the spirit of cohabitation, having a robust cohabitation agreement is important for protecting assets.

With more couples choosing to live together without marrying, and more people choosing not to marry at all, an increasing number of couples are risking losing valuable assets in the event of separation or the death of a partner.

A written agreement gives certainty and protection for both partners so that you can relax in the lifestyle you have chosen.

Similarly, if a couple is separating but not yet divorcing or dissolving their civil partnership, then it can be beneficial to create a separation agreement to set out arrangements for finances, property, and children.

For tailored cohabitation and separation agreements that suit your unique needs, speak to our team today.

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How can we help you

Our expert team is on hand to:

Draft Cohabitation Agreements to set out who owns what and how assets will be divided
Prepare Separation Agreements to record financial settlements while delaying divorce proceedings
Negotiate fair terms, review existing agreements, and represent you in court when required
Provide clear advice on pensions, property, maintenance and Consent Orders

Cohabitation and Cohabitation Agreement

What is cohabitation and what are your rights?

Couples that cohabit have no rights over their partners income or assets unless they own the assets jointly, have made substantial capital contribution or alternatively they have entered into a Cohabitation Agreement stating how assets are to be divided. You do not obtain rights against a person or their assets simply by living with them regardless of how long you live together.

This lack of rights is not just restricted to relationship breakdown, however. If one partner dies, then the other partner will have no automatic claim on their estate if that person died without leaving a Will.

Making a Will is an obvious step, but for those wanting to ensure they are protected as best as possible during both partners’ lifetimes, drawing up a Cohabitation Agreement is a sensible option.

Cohabitation agreements

A Cohabitation Agreement is a private contract between partners that records their intentions about money and property while they live together and if they separate.

It can:

Confirm who owns the home and other assets
Record contributions to mortgage payments, renovations and savings
Set out how joint debts will be shared or repaid
Explain what happens if one partner dies

Advantages of a cohabitation agreement

A Cohabitation Agreement can be drawn up to state whatever the parties agree
The agreement will provide a framework for what will happen if the relationship breaks down
Creates certainty so both parties know where they stand
The agreement provides a record of the parties intentions at that time.
Cohabitation Agreements are based in Contract law however this does not stop one of the parties trying to renege on the agreement. If this occurs it would then be for a Court to decide matters. If there is no agreement in place it is then one parties word against the other and the parties have to resolve the issue amongst themselves. A Court can only become involved when there is a legal matter in issue, i.e. in this instance breach of a contractual agreement. Without the agreement there is nothing either party can do to make the other part adhere to what they had previously verbally agreed.

For a Cohabitation Agreement that suits your relationship, get in touch.

Speak with our family law team

Separation and Separation Agreements

A Separation Agreement, also called a Deed of Separation, records the financial arrangements when a couple separates but does not want to start divorce proceedings straight away.

It commonly covers:

Sale or transfer of the family home and division of proceeds
Maintenance payments and lump sum settlements
How joint debts will be dealt with
A statement that the agreement is intended as a full and final settlement

Parties often prefer a Separation Agreement because it is negotiated rather than imposed by the court.

The agreement can later be turned into a legally binding Consent Order when divorce proceedings begin.

What are the advantages and disadvantages of a separation agreement?

Some couples may hesitate before going through the process of getting a separation agreement as they may not understand if it is right for them.

We want to help you understand the benefits and drawbacks of a separation agreement so you can make a more informed decision.

Advantages of a separation agreement

The parties reach the solution themselves, so they are more likely to adhere to it
It allows both parties to move on financially without immediate divorce proceedings
It can be completed relatively quickly compared with full court proceedings

Disadvantages of a separation agreement

It is an additional cost on top of divorce fees
It is not always legally binding, so a court could revisit it in later financial proceedings
Pensions cannot be shared until divorce proceedings start and the court makes the relevant order
Either party could decide to start divorce proceedings earlier than planned

Important matters to consider

For an agreement to have the best chance of being upheld later, these matters should be in place:

Both parties obtain independent legal advice
Full and frank financial disclosure by both parties
No pressure or coercion to sign the agreement
The agreement is fair in all the circumstances

Although the agreement will not prevent an application to the court to consider the financial matters, providing the above matters have been complied with the agreement is likely to be upheld by the court.

Case law shows that fully informed agreements entered into freely are likely to be upheld, particularly if the parties act on them over time.

For more information on Separation Agreements please contact the Family Team at Palmers Solicitors.