Cohabitation Agreements

Whereas the court has ultimate control when dealing with financial issues concerning divorce, if couples who are living together enter into a properly constructed cohabitation agreement this will almost certainly be absolutely binding on them. Accordingly, it is possible to properly protect your position by entering into such an agreement at the outset of a relationship. There is no “common law” or other legal status governing those who live together but do not marry or enter into a civil relationship.

Financial Issues

The law dealing with financial disputes between couples who live together, but are not married, is complex. The main area of dispute tends to revolve around the ownership of property.

The Trusts of Land and Appointment of Trustees Act 1996 makes provision for dispute resolution where two cohabitees cannot agree whether there should be a sale or not and for a declaration as to the extent of their respective interests.

When considering making an order the court will take into account:
a. The intention of the parties;
b. The purpose of the joint purchase;
c. The welfare of any children;
d. The interests of any secured creditor (eg. a mortgagee).

The most complicated area is ascertaining the intentions of the parties at the time when the property was purchased, as at that point relationship breakdown was probably not contemplated.

However, if an express declaration of trust was made at the outset of the purchase this will almost certainly be conclusive of the shares in which a property is owned.