Cohabitation agreements are not well-known or well-understood, resulting in more residents missing out on vital legal protections.
The way that we view relationships and living arrangements has changed, with Essex also seeing a shift in how people live.
Rising rents and challenging housing markets are causing more people to cohabit than before, even if they are not in any form of romantic relationship.
A new era of living is upon us and only through understanding cohabitation agreements can people make the most of it.
Is a cohabitation agreement just for couples?
Do an online search for cohabitation agreements and you are likely to find discussions on how unmarried couples can use them in place of tying the knot to get some legal protection.
This is true. They are useful for couples who do not want to get married or enter a civil partnership, but there is a lot more to a cohabitation agreement than an ersatz marriage contract.
A cohabitation agreement provides a legally binding contract for two or more people who share a residence.
They do not need to own the property, nor do they need to be in any form of relationship.
Cohabitation agreements also do not solely focus on what happens if living arrangements change, as they can be used to enshrine provisions while people are living together.
What should be included in a cohabitation agreement?
Cohabitation agreements establish legal protections, provided they are drafted correctly and entered into freely and knowingly by all parties.
As such, they should cover anything that needs to be considered when living together.
To make use of a cohabitation agreement while living together, it is wise to outline how bills will be divided, particularly if one resident is able or willing to pay more towards rent or bills than another.
Relying purely on altruism and a handshake is likely to lead to conflict if the generous resident later withdraws their offer, so a cohabitation agreement can ensure stability when dividing up household bills.
It can also be used to retain ownership of any shared assets that are bought for the property and outline provisions for their replacement in the event of damage or what will happen to them should one or more of the residents leave the property.
Recent news coverage has indicated that the breakdown of cohabitation can cost as much as £5,000 if items are left in the property or taken by someone who did not originally pay for them, so it is worth including them in a cohabitation agreement.
Any pets should be listed in a cohabitation agreement with specific residents given responsibility for the animal in the event that things do break down and those involved end up moving away.
The property itself can be included in a cohabitation agreement if it is owned by the people living in it, with measures detailing how ownership should be split if one or more people decide it is time to move on.
At Palmers solicitors, we understand that the world has changed significantly and that the law needs to keep up.
If you or a loved one are entering a shared living situation, or are already in one, then a cohabitation agreement is important.
Legal protections are limited without it and the resulting disputes that can occur when living together or when trying to move on if things break down.
Our expert team can draft and review cohabitation agreements, as well as advise on the most effective strategy for a person’s unique living circumstances.
You and your loved ones deserve peace of mind in whatever residence you inhabit, so we can help you support you. Speak to our team to find out the true value of cohabitation agreements in the new age of shared living.
