A Cohabitation Agreement is a formal agreement entered into by 2 people who intend to live together to set out what happens in the event of their relationship breaking down. It doesn’t need to be a couple but could regulate where siblings or other family members intend to live together.
These types of agreements can also be relevant in situations like a partner moving into a property that the other person owns in their sole name. It can set out, for example, that the person moving in, regardless of any financial contribution to outgoings will not gain any financial interest in the property.
It is also helpful in situations where couples are contributing to the property in differing shares. The agreement can set out what would happen in the event of separation for example with who is going to move, who is going to pay the utility bills and / or mortgage. It can set out how long one party should have to buy out the other, and/or how long before the property goes on the market for sale.
Whilst a Cohabitation Agreement may seem like an unnecessary expense it is much better to enter into these agreements whilst you are still in a relationship than it is on the breakdown of a relationship because it is at this point that matters become that much harder to agree. It could also potentially avoid expensive litigation on claims being made in the future.
For more information on Cohabitation Agreements visit here.
