Cohabitation Agreement

Part of: Financial Settlement after Divorce

A cohabitation agreement can often be seen as unromantic but are somewhat important to avoid uncertainty and lengthy legal costs. Our cohabitation agreement lawyers often describe as a form of insurance.

Cohabiting couple families are the fastest growing family type in the UK — 3.5 million in 2024, up from 3.1 million a decade earlier, and now 17.7% of all families (ONS, Families and Households in the UK). The law protecting them has not moved at the same pace. Figures reviewed [2026]. Source: Office for National Statistics.

If you have found the perfect life partner and marriage isn’t yet on the cards then a cohabitation agreement is something that should be carefully considered.

What is Cohabiting?

Cohabiting is an alternative to marriage. So what is cohabiting? Cohabiting is where couples live together in a sexual relationship whilst not being married. Many couples often cohabitate to test their relationship compatibility before they enter into a marriage. It is important to note that the legal rights of a cohabiting couple differ from those who are married.

Why do couples choose to cohabitate?

One of the main reasons for cohabitation is that a couple wants to test their relationship before considering marriage. Cohabitation allows a couple to live together under one roof in a relationship which is similar to being married. Many people want to test whether their interest in their partner can hold against day to day problems. By cohabiting, a couple can test their compatibility.

Many people also choose to cohabitate for convenience. Cohabitation allows a couple to share living expenses rather than pay alone. This includes sharing accommodation and utility costs as well as the costs of daily living. Couples may also choose to cohabitate to increase intimacy in their life. Couples who do not live together may not be able to be as intimate as they like. A couple who cohabitate can also build on their sexual intimacy through this arrangement.

Why many are choosing to cohabitate instead of marriage?

One of the main reasons for choosing to cohabitate instead of marriage is the costs associated with marriage. Many people quite simply are unable to afford a marriage. Planning and executing a wedding can be expensive. It includes the costs of venues and wedding dresses amongst others. People often see cohabitation as a cheaper option to marriage where they just move in together without the costs of the marriage.

People are often afraid of marriages ending in divorce. Many people often want to ensure the person they live with is the right person for them. If they were to marry and arguments arise it could lead to divorce. You often hear or see in the media about celebrity divorces and fall out. Ending a marriage could cause emotional and financial stress and may turn out hostile. In this day and age divorce can cause a financial burden on couples. In order to separate from a marriage, you will need to obtain a divorce and possibly settle any finances. This could incur huge legal costs and time. Whereas a cohabitation can end at any time without the need of any legal hassle.

Couples who divorce can claim against each other’s assets, including pensions and income. Cohabiting couples have no equivalent automatic claim. Property disputes between cohabitees are decided under trust and land law rather than family law, which means the outcome turns on what you can evidence about contributions and intentions — not on what feels fair. If one partner owns the property but both live together then upon divorce, they both have rights to the property. In contrast for cohabitation the party who doesn’t own the property may not obtain such rights. Cohabitation can therefore also be seen as protecting a persons financial position when compared to marriage.

What is a cohabitation agreement?

A cohabitation agreement is a legal agreement put in place for couples who live together whilst they are not married. This is also known as a cohabitants agreement or a cohabitation contract. The agreement allows you to enter into a legally binding contract between you as a couple. Cohabitation agreements can cover many terms and decisions such as:

• Who shall pay for the upkeep and bills in a property, and how
• Who owns a share in a property and in what proportions
• What will happen in the event of a separation
• Who shall pay certain debts

It is a contract which allows a couple to agree its terms and responsibilities arising from cohabiting together.

What are the benefits of a cohabitation agreement?

Cohabiting couples have no automatic financial claim against each other on separation. There is no such thing as common law marriage in England and Wales, however long you have lived together and whether or not you have children. You have no automatic right to maintenance for yourself, no claim on your partner’s pension, and no automatic claim on property held in their sole name.

That is not the same as having no options. Without an agreement, a separating cohabitee is pushed into slower and more expensive routes: a claim under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA), or an argument that a resulting or constructive trust gives you a beneficial share in a property you are not named on. Where there are children, Schedule 1 of the Children Act 1989 allows claims for their benefit — a lump sum, or a property to house them until they reach adulthood.

The agreement allows couples to decide on the terms of their separation. It provides certainty to a relationship knowing what each partner will be entitled to in the case of a separation.

A properly drafted and properly executed cohabitation agreement carries real weight in the English courts, and in most cases the terms will be upheld. Enforceability is not automatic, though. The agreement must be executed as a deed and correctly witnessed, and the circumstances in which it was signed must stand up to scrutiny.

A court is far more likely to uphold an agreement where both partners gave full and honest disclosure of their finances, each took independent advice, and neither was pressured into signing. Terms that attempt to override a court’s duty to a child will not be enforced regardless of what the parties agreed.

It is also not irreversible. You can vary or replace the agreement at any time by mutual consent, provided the change is recorded as formally as the original. We recommend reviewing it after a house purchase, a new child, or one partner reducing their hours.

Cohabitation agreements can be a tool to avoid conflict. Such agreements could contain on your responsibilities and rights when living together and not just on separation. Having an agreement in place can limit any disagreements as each partner is aware of what their responsibilities are.

A cohabitation agreement can save money if the relationship ends. By having an agreement in place there is usually no need for legal action when the relationship ends. You can avoid paying huge legal costs on separation by having an agreement in place.

How soon can a cohabitation agreement be prepared?

A cohabitation agreement can be entered into at any time. Either when you are deciding to move in together or whether you have been living together for a few years. In order to enter into a cohabitation agreement you should seek advice from a family law adviser. An adviser will be able to discuss your options with you and place a value on your assets which need protection.

The length of time it can take to prepare a cohabitation agreement depends on individual circumstances. If a couple is able to agree on terms amicably the process can be relatively quick and straightforward. The agreement however may take time to prepare if changes are required or the terms cannot be prepared.

If you are looking to enter into a cohabitation agreement then contact us today for a free initial consultation. We can consider your circumstances and advise you on the process of entering into a legally binding agreement.

Can you write your own cohabitation agreement?

It is important to note that a couple can agree the terms of a cohabitation agreement between them. However for the agreement to be binding it must be formally drawn up into a deed. Therefore although an agreement can be made on your own you will need legal assistance to ensure it is recorded formally. The agreement will also need to be witnessed to ensure it is enforceable.

Cohabitation law is under review — where the 2026 reforms stand

On 5 June 2026 the Ministry of Justice launched A Fairer End to Relationships, the most significant review of cohabitants’ rights in a generation. It covers financial remedies on divorce, financial provision for cohabitants on separation, and inheritance where a cohabiting partner dies without a will.

The headline proposal is a statutory framework allowing couples who have lived together for at least three years to bring limited financial claims on separation, with similar protection possible where there is a child. The proposed scheme is narrower than the remedies available on divorce, and includes an option for couples to opt out.

None of this is law. The consultation closes on 14 August 2026, and any legislation would still need to pass through Parliament. Anyone separating now is dealt with under the law as it stands.
One detail matters today: the proposed scheme includes an opt-out, and couples who have documented their intentions in writing are in a stronger position under both the current law and the proposed framework.

The pitfalls people miss

Drawn from matters our family law specialists have advised on. Details changed to protect client confidentiality.

1. The deposit that was never recorded

One partner puts in a deposit from savings or an inheritance. The property goes into the other’s sole name, or into joint names with no declaration of shares. Nobody writes anything down because the relationship is fine.
What we advise: record the contribution as a share on the face of the deed, at the point of purchase. Reconstructing it years later from a [bank transfer] and remembered conversations is a TOLATA claim — slow, expensive, and decided on evidence you may not have kept.

2. Paying the mortgage isn’t the same as owning it

A common assumption: I’ve paid half the mortgage for [X] years, so half is mine. Mortgage payments alone don’t create a beneficial share. Neither do the bills, the food shop, or years of unpaid work on the house.
What we advise: agree what each payment represents while you’re making it. Rent, contribution to a share, or a loan — say which.

3. The renovation that added value to someone else’s asset

One partner funds [a kitchen, an extension, a loft conversion] on a property they aren’t named on. The property gains value. On separation there’s no automatic route to any of it.
What we advise: record the spend and what it buys, before the builders start.

4. Giving up work isn’t recognised

The partner who reduces hours or stops working to raise children has no claim for maintenance for themselves — however long the relationship. Schedule 1 Children Act claims exist for the children’s benefit, not the parent’s.
What we advise: if one of you is stepping back from earning, put the financial consequence in writing at the time. This is the single most common gap we see.

5. No will means no inheritance

Intestacy rules don’t recognise cohabiting partners. If your partner dies without a will, you may inherit nothing — even from a home you shared for decades.
What we advise: an agreement and a will are two documents, and you need both. An agreement doesn’t do the job of a will.

6. The agreement that was never made a deed

A written, signed agreement that isn’t executed as a deed and properly witnessed may not bind. Template agreements downloaded online frequently miss this.
What we advise: execution formalities are not admin. They’re the difference between an intention and an enforceable document.

7. Signed without disclosure or independent advice

Agreements are challenged on how they were signed, not what they say. No financial disclosure, no separate advice, or pressure to sign — any of these gives the other side something to argue.
What we advise: full disclosure both ways, separate advice for each partner, and enough time between draft and signature.

8. Never reviewed after life changed

An agreement drawn up when you were renting doesn’t cover the house you bought four years later. Agreements go stale.
What we advise: review after a purchase, a child, a significant inheritance, or one partner reducing their hours. 

In almost every matter we advise on, the couple didn’t expect to separate and assumed time together had built rights. It hadn’t. The document was always cheapest on the day it was least necessary.

Contact our cohabitation agreement specialists today

If you are looking to move your relationship to the next stage and are looking to cohabitate, then contact us today on 0330 094 5880 or let us call you back to arrange a free consultation today.

With family lawyers in Newcastle as well as York, London and Oxford we can provide you with advise and assistance on cohabitation and assist you in preparing a cohabitation agreement to protect your interest and secure your future.