In the latest of our series of legal advice columns, Sarah Birdsey from Timperley-based Nicholls Solicitors takes a look at prenuptial agreements.
What is a Cohabitation Agreement?
A cohabitation agreement is a legal contract between two people who live together but are not married or in a civil partnership. This agreement outlines the rights and responsibilities of each party, covering aspects such as property ownership, financial arrangements, and what happens in the event of a breakup.
Why should I consider a Cohabitation Agreement?
Property Rights: Clarifies ownership and division of property acquired individually or jointly during the relationship.
Financial Security: Outlines how bills, debts, and expenses will be handled.
Protection in Case of Separation: Establishes clear guidelines on asset division, living arrangements, and financial support if the relationship ends.
Legal Protection: Reduces the potential for legal disputes by defining expectations and responsibilities.
What is the process of creating a Cohabitation Agreement?
Step 1: You will have an initial free consultation with us. Each party should consult their own solicitor to ensure their interests are protected and the agreement is legally enforceable.
Step 2: Your solicitor will draft the Agreement. We will work with you to draw up the agreement based on your specific circumstances and future intentions.
Step 3: We will send the draft agreement to your partner (or their solicitor) so that they can receive independent legal advice on it. Once we receive their feedback, we will review any proposed amendments with you and ensure that you are happy with the final version. This step can be repeated if there are several proposed amendments from either party.
Step 4: Once the draft has been agreed, we will sign the final version of the agreement in the presence of witnesses. It will then be sent to your partner (or their solicitor) for them to do the same. It's advisable for both parties to keep a copy of the final signed agreement.
What will be included in my Cohabitation Agreement?
Every Cohabitation Agreement is unique. Here are some of the most common elements:
- Property Ownership
This will depend on whether you jointly own the property or not. The agreement will either outline the ownership of a property that was acquired before the relationship or if you have a jointly owned property, it will define how it will be divided if the relationship ends. You can also specify how the contributions to the property will affect the ownership (and it is expected that your title deeds will reflect the ownership details in the agreement).
- Financial Arrangements
You can define whether joint accounts will be opened and how they will be managed. We can specify in the agreement who will be responsible for paying rent/mortgage, utilities, groceries and other household expenses and set an agreement on how existing and future debts will be handled.
- Division of Assets
We can create a plan for dividing shared assets, including furniture, vehicles and pets. You may also want to consider any provisions for how assets should be distributed if one partner dies, and whether this agreement impacts any existing wills.
- Dispute Resolution
We can discuss whether disputes will be resolved through mediation or arbitration before taking legal action and how legal costs will be managed if disputes escalate to court.
A cohabitation agreement is a proactive way to manage the legal and financial aspects of living together without marriage. While it may seem unromantic, it can prevent future disputes and provide peace of mind by clearly defining each partner's rights and responsibilities.
We strongly advise that you consult with a legal professional to ensure that the agreement complies with current laws and adequately protects your interests.
For more information about Cohabitation Agreements and Nicholls Solicitors, visit nichollssolicitors.com or call 0161 980 6099
