More couples are choosing to live together without marrying or entering into a civil partnership. However, many do not appreciate how limited their legal rights may be if they separate or one partner dies.
There is no legal status of “common-law marriage” in England and Wales. Living together for many years, having children or sharing household expenses does not automatically give unmarried partners the same financial rights as spouses or civil partners.
A cohabitation agreement can help couples decide how their property, finances and responsibilities will be managed during the relationship and what should happen if they later separate.
What is a cohabitation agreement?
A cohabitation agreement is a written agreement between two people who live together or intend to do so.
It may record:
- who owns the property;
- how mortgage payments and household bills will be divided;
- whether financial contributions create any interest in the home;
- ownership of savings, furniture and other assets;
- responsibility for debts;
- arrangements concerning joint accounts;
- what will happen if the relationship ends; and
- how any jointly owned property will be sold or transferred.
The Government describes such agreements as arrangements that may record property ownership, financial responsibilities and what should happen following separation. Their enforceability depends on how they are prepared and the circumstances in which they are entered into.
The common-law marriage myth
One of the most persistent misunderstandings is that cohabiting partners acquire marital rights after living together for a particular period.
They do not.
Following divorce, a court has wide powers to redistribute property, award maintenance and make pension-sharing orders. Those powers generally do not apply merely because an unmarried couple’s relationship has ended.
Instead, disputes between cohabitants may depend on property, trust and contract law. The outcome can therefore turn on legal ownership, financial contributions, discussions between the parties and evidence of their intentions.
This can result in complicated and expensive litigation.
Who owns the home?
The starting point will often be how the property is legally owned.
Property in one partner’s name
Where the home is registered in one person’s sole name, the other partner does not automatically become an owner by living there or contributing towards ordinary household expenses.
In some circumstances, the non-owner may argue that they have acquired a beneficial interest. Such claims can be legally complex and highly dependent on evidence.
Jointly owned property
Where both partners are registered owners, they may hold the beneficial interest as either:
- joint tenants, under which they ordinarily own the property together without defined shares; or
- tenants in common, under which they own specified or ascertainable shares.
A declaration of trust can record the parties’ shares and may explain how sale proceeds are to be divided.
Disputes concerning jointly owned or beneficially owned land can result in applications under the Trusts of Land and Appointment of Trustees Act 1996. The court may be asked to determine the parties’ interests or make orders concerning the property.
Why financial contributions can cause disputes
Couples often contribute in different ways.
One partner may provide the deposit while the other pays more towards the mortgage. One may fund renovations while the other covers childcare and household expenses.
Without a written agreement, the parties may later have completely different views about what those payments were intended to mean.
A cohabitation agreement, often supported by a declaration of trust, can record:
- the deposit paid by each person;
- the percentage each owns;
- whether mortgage payments alter those percentages;
- how improvement costs will be treated;
- who may remain in the property after separation;
- how the property will be valued; and
- the procedure for a sale or buyout.
Household expenses and debts
A cohabitation agreement can also deal with everyday finances.
The parties may agree:
- which bills will be paid from a joint account;
- how rent or mortgage payments will be divided;
- responsibility for council tax and utilities;
- how holidays and major purchases will be funded;
- who owns particular possessions; and
- whether either person will provide financial support following separation.
An agreement cannot simply remove legal responsibilities owed to lenders, creditors or children. For example, an arrangement between partners will not prevent a mortgage lender pursuing either borrower under a joint mortgage.
Nevertheless, recording the parties’ intentions can substantially reduce uncertainty between them.
Children
A cohabitation agreement should not be treated as a substitute for arrangements concerning children.
Parents remain subject to their legal responsibilities, including child maintenance obligations. Decisions concerning a child’s welfare will ultimately be made by reference to the child’s best interests rather than an agreement between the parents.
The agreement may still record practical expectations, but legal advice should be taken where arrangements for children are a significant issue.
What happens if one partner dies?
An unmarried partner does not automatically inherit under the intestacy rules simply because the couple lived together.
A surviving cohabitant may, in some circumstances, be able to bring a claim against the deceased’s estate. However, that is not a substitute for making proper arrangements in advance and may involve stressful and costly proceedings.
Cohabiting couples should therefore consider:
- making or updating their wills;
- reviewing life insurance and pension nominations;
- checking how jointly owned property is held; and
- preparing lasting powers of attorney.
A cohabitation agreement does not replace a will.
Is a cohabitation agreement legally binding?
A properly prepared cohabitation agreement may be enforceable as a contract, but there is no guarantee that every provision will be upheld.
Its weight is likely to be stronger where:
- both parties enter into it voluntarily;
- each understands its effect;
- there has been honest financial disclosure;
- both have had the opportunity to obtain independent legal advice;
- the terms are clear and lawful; and
- the agreement is executed correctly.
Pressure, misrepresentation, uncertainty or serious unfairness may create problems.
Each party should generally obtain advice from a separate solicitor to reduce the risk of later allegations that one person did not understand the agreement or was improperly influenced.
When should the agreement be reviewed?
Couples’ circumstances change.
An agreement should be reconsidered following events such as:
- purchasing or selling a property;
- having a child;
- receiving an inheritance;
- making substantial renovations;
- a major change in income;
- taking on significant debt;
- becoming engaged or married; or
- relocating abroad.
Regular reviews help ensure that the document continues to reflect what the couple actually intends.
It is also important to note that the Government began consulting in 2026 on possible stronger rights for cohabitants. Those proposals should not be mistaken for existing automatic rights, and the current legal position should be checked when advice is taken.
How Penerley Solicitors can help
Penerley Solicitors can advise on cohabitation agreements, declarations of trust, jointly owned property and disputes following separation.
We take the time to understand how you own your property, what each partner is contributing and what outcome you want to achieve.
A clear agreement cannot remove every risk, but it can provide greater certainty, encourage open discussion and significantly reduce the likelihood of a future dispute.
Contact Penerley Solicitors to discuss preparing or reviewing a cohabitation agreement.
