The position of cohabitants is much more easily protected than in the event of marriage.
It is possible to have a cohabitation agreement which can set out exactly what you want to achieve in terms of entitlements and protecting assets. When parties are married the law allows the court to adjust property rights on divorce but when parties live together the law can only determine who owns the property and in what shares. This is based upon the title deeds and any other documentation. It can also be based on contributions and intentions. It is contributions and intentions which is the biggest source of litigation between cohabiting couples as they often forget what these were once a relationship breaks down.
Therefore having an agreement can be an effective way of showing what intention was and what contributions were expected. The usual items included in a deed are:
- Who owns what property
- Whether it is intended either party will have an interest in the property owned by the other and if so in what circumstances.
- What will happen if either party makes a financial contribution/improvements to the property.
- Who will pay any mortgage/other outgoings
- The ownership of the contents
- Ownership of bank accounts and other capital assets
- What will happen if the relationship breaks down