Moving in with your partner can be an exciting step which opens the door not only to a new home, but to a new chapter in your relationship! At CA Legal we embrace this new milestone and want to help you lay strong foundations for a happy and secure future together.

In light of this, it is worth considering how your finances, property and future arrangements will work between you both. Did you know that cohabitation rates have increased dramatically by 144% in the past 30 years, yet nearly half of all cohabitants in the UK do not know their legal rights in regard to the property that they share.

The current law for cohabitants

Unlike married/ civil partners, cohabitants (unmarried partners living together) do not automatically retain ‘home rights’. Home rights essentially mean that a spouse or civil partner has the legal right to occupy the matrimonial home, even if they do not legally own the property. This is because divorce and dissolution consider fairness for the parties pursuant to the Matrimonial Causes Act 1973.

In the event that your relationship regrettably breaks down and only your partners name is on the legal title of the property, as a cohabitant you would have to show the court that you obtain a beneficial interest in the property. Currently, the law is far from straightforward for cohabitants. This is because cohabitants may find themselves navigating the often-murky waters of TOLATA, also known as Trust of Land and Appointment of Trustees Act 1996, when seeking to establish their rights in a property. TOLATA does not have entrenched fairness principles for parties like divorce/dissolution does. As a result, parties attempting to prove a beneficial interest may face uncertainty and unpredictably with regarding the court’s decision.

The only instances when decisions are more certain, is when couples have kept rigid tracks on all their financial assets, as exemplified in Stack v Dowden [2007] UKHL 17. However, generally this is not the reality for most couples.

Positives of a Cohabitation Agreement

With this in mind, creating a legally binding cohabitation agreement can be a practical way for you and your partner to protect your interests and provide certainty should the relationship ever come to an end. Cohabitation agreements can also make a relationship breakdown easier to navigate, as they set out how assets and financial responsibilities will be dealt with. This can reduce the scope for disputes and help avoid unnecessary conflict at an already difficult time. Consequently, a cohabitation agreement can actually be viewed as a positive step in a relationship, as it reflects openness, trust and a willingness to have honest conversations about the future.

How CA Legal can help

At CA Legal Advice we want to help protect your rights and minimise any potential risks that can arise if you do not have a legally binding cohabitation agreement in place. We recognise that some couples may initially feel apprehensive about entering into a legally binding agreement. However, we work closely with both parties to ensure they are comfortable with and understand the terms of the agreement before it is finalised.

Cohabitation agreements are all about prevention and trusting each other when starting this new chapter together, and planning for your future.