Cohabitation Agreement: An Overview
There are couples who choose to live together without tying the knot. A cohabitation agreement is a formal agreement that is signed by a couple who have decided to live together. By some sections of the law, for example, the Income Support and Housing Benefit, partners who cohabit are treated in the same vein as married couples. However, when it comes to some private laws, they do not enjoy the same benefits as married couples. A cohabitation agreement includes the necessary documentation for a couple who wish to stay together and avoid the cost of litigation if they choose to part ways. However, when it comes to issues such as pensions, inheritance and property rights, these are treated in a different manner.
Much like a prenuptial agreement, this document allows both the partners to determine well in advance as to who would get to keep the assets that have been purchased jointly. Such a contract helps to settle financial commitments.
When it comes to rules for the unmarried couples, these are markedly different. Therefore it would be a mistake to believe that couples living together are entitled to the same set of rights as married couples. There is nothing called the common-law marriage.
If you are contemplating moving in with your partner, then it is necessary that you weigh the pros and cons of the decision. People often think that staying together would bring down the living expenses considerably. Framing a cohabitation agreement would help to take care of the practical side of such a union. However, the nature of the agreement would largely depend on the kind of situation that each of the partners is in. Contents of a cohabitation agreement include:
The term of the agreement
The purpose of the agreement and whether the parties involved want it to be legally binding
The ways in which the couple will handle outstanding debts
Arrangements for children
Matters concerning wills and inheritances
While formulating a cohabitation agreement, it is necessary to keep certain factors in mind.
1. The agreement should always be in writing and sanctioned by the concerned authorities so that the parties involved are legally bound by the contract.
2. The terms of the agreement should be clearly stated. For instance, if a section of the agreement deals with the finances, then it is necessary to clearly state where the money comes from and the way it would be distributed. The use of vague terms would increase the complications of the case and that would make the agreement ‘void for uncertainty’.
3. It is a legal document and the agreement needs to be recorded in the presence of an independent witness who can account for the signatures.
The agreement should be made after it has been carefully examined and reviewed. It is necessary to make sure that all the aspects are taken into account and no one partner has the upper hand especially when it comes to matters such as division of property. It is necessary to ensure fair distribution of mutually held properties. The help of a conveyancing solicitor can be sought in this regard.
Processing your request, Please wait....
