What is a Cohabitation Agreement?
Moving in with your partner, or purchasing a property with friends, can be an exciting new chapter. However, stepping into a shared life without clear financial agreements leaves you unprotected.
Many couples in the UK mistakenly believe that living together automatically grants them the same legal rights as a married couple, often referred to as a common law marriage. This is a complete myth. When a romantic relationship breaks down or a shared property arrangement between friends comes to an end, that misunderstanding can lead to serious consequences. Without a formal agreement, you risk complex property disputes involving solicitors, sudden financial hardship, or even homelessness.
In this article, we explain what is included in a cohabitation agreement, when it is best to be used, and how to register the document’s existence at the Land Registry.
- Financial and Living Scope: A cohabitation agreement covers home deposits, mortgage splits, joint bank accounts, existing personal debts, household assets, and pet custody arrangements. You can get one whether you are in a romantic relationship, or if you are friends, siblings, or housemates.
- Litigation Risks (TOLATA): Without an agreement, property ownership disputes default to court action under TOLATA, where legal fees average between £15,000 and £50,000+ per partner.
- Legal Enforceability: Unlike divorce proceedings, Living Together Agreements are governed by strict contract law, meaning agreements must be executed correctly to be enforceable.
- Estimated Drafting Costs: The average cohabitation agreement cost ranges between £700 and £3,000, depending on the complexity of the drafting.
- Land Registry Protections: You can protect your underlying property equity at Land Registry using Form A Restrictions, Form N Consent Restrictions, or Notices.
Do unmarried couples have legal rights in the UK?
No, unmarried couples do not have legal rights in England and Wales. They can, however, grow rights to the beneficial interest in the property by living together and paying towards the property costs, such as mortgage repayments and repairs or maintenance.
Is common law marriage real?
No. Common law marriage doesn’t exist under English law, regardless of whether a couple has lived together for years or decades, or even if they have children together.
Unmarried cohabitants fall entirely outside the scope of the Matrimonial Causes Act 1973. This means there are no statutory rights to spousal maintenance, pension sharing, or equal property redistribution after a breakup.
Also, under Intestacy Rules, surviving unmarried partners have no automatic right to inherit their deceased partner’s estate or home if there is no valid will in place.
What laws apply to couples who live together?
Because family law doesn’t generally provide the same protections to unmarried couples as it does to married couples or civil partners, the rights and financial interests of cohabitants are largely determined by property law, contract law, and other specific legal rules.
- General Contract Law: A Cohabitation Agreement is essentially a legal contract between two people who live together. Where an agreement is intended to be legally binding but there is no clear exchange of consideration, it may be executed as a formal legal Deed to remain enforceable, subject to the usual legal requirements.
- The Law of Property Act 1925: This legislation provides the framework for property ownership, dictating how legal title is held as joint tenants or tenants in common with defined beneficial equity shares (such as 60/40), which can be recorded via a Declaration of Trust and Cohabitation Agreement.
- TOLATA 1996: The Trusts of Land and Appointment of Trustees Act 1996 (TOLATA) provides the framework courts use when resolving certain disputes about property ownership between cohabitants. For example, where there is a disagreement over beneficial ownership or each person's share of a property, the court may be asked to determine the parties' respective interests.
- The Inheritance (Provision for Family and Dependants) Act 1975: Under the intestacy rules, an unmarried partner doesn’t automatically inherit their deceased partner's estate simply because they lived together. This can include the family home, depending on how it was owned. However, the 1975 Act may allow a surviving cohabitant who meets the relevant conditions to claim reasonable financial provision from the estate. In particular, a person who lived with the deceased as if they were their spouse or civil partner for at least two years immediately before the death may be eligible to make a claim.
- The Children Act 1989: This legislation provides the framework for arrangements concerning children, including child maintenance and financial provisions when an unmarried couple with dependent children separates.
When should I draft or update an agreement?
You can make a cohabitation property agreement at any time, whether you are about to start living together or if you have been doing so for many years. Your solicitor can help you negotiate this agreement and can write it down in a way that it is likely to be respected by the court in case there is ever a dispute about it. You can also use a trained mediator to help both parties discuss and agree on potential terms before preparing the formal draft.
Can you get an agreement after you purchase a property?
Yes. You get an agreement at any time after buying a property. Although many couples choose to have it ready before or during the property-buying process, there is nothing unusual about doing so months or even years later.
You can do this at any time, especially if your financial situation and living arrangements. For example, one partner might pay more towards the mortgage, cover major home improvements, or earn more or less than at the time of purchase. A living together agreement can clarify each person's rights and financial obligations as circumstances change.
Do you need a Cohabitation Agreement?
If you are living together without being married, it is important to have a Living Together Agreement. It protects your initial house deposits, inheritance funds, and family gifts from being treated as shared property in the event of a separation.
It also creates clear, legally binding rules for managing shared expenses, utility bills, and joint bank accounts while you live under the same roof.
What should be included in a Cohabitation Agreement?
The clauses within an agreement depend on the relationship and what both parties mutually agree. These are just some examples of what can be included:
How are rent, mortgages, and house deposits split under TOLATA?
Property ownership claims for unmarried cohabitants are governed by the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA). Under TOLATA, a partner who doesn’t own the property and who wants to claim a share in a home must meet a strong evidence threshold in court to prove a constructive trust or proprietary estoppel.
TOLATA claims are very expensive, usually ranging between £15,000 and £50,000+ per party, while complex trials could cost over £100,000. If you want peace of mind, whether you stay together or the relationship ends, a clear agreement can explain what will happen to the property. This might include buyout options, how the property will be valued, how much notice must be given, and how long the couple has to sell the property if an agreement cannot be reached.
How do unmarried couples split joint accounts, debts, assets, and pets
- Joint accounts: Can include clear limits on withdrawals and contributions, as well as an agreed way to divide any remaining balance if the account is closed.
- Individual debts: The responsibility can remain with the person who acquired them, including credit cards, personal loans, and student loans.
- Pets: Clear arrangements for legal ownership can be made, which can include where the pets will live and how ongoing costs such as veterinary bills and pet insurance will be shared.
- Personal possessions: The agreement can also cover other valuable possessions, such as vehicles, electronics, furniture and art collections, setting out how these assets would be divided if the relationship ends.
- Pensions and death benefits: Couples can also agree how death in service benefits and private pension beneficiary nominations should be kept up to date, helping to ensure their wishes are reflected if one partner dies.
Essential extra clauses
If you want to make your agreement clear and practical, our conveyancing team recommends including the following key provisions:
- Dispute resolution: Include a clause requiring both parties to try professional mediation before taking a dispute to court. This can help resolve disagreements more quickly and avoid the cost and stress of court proceedings, including a potential TOLATA claim.
- Buyout arrangements: Set out exactly what happens if one partner wants to leave the property or buy out the other’s share. This should cover how the property will be valued, how the buyout will be calculated and how long the remaining partner has to arrange finance. For example, you could agree that the property will be valued using the average of three independent RICS surveyor valuations, with the remaining partner given 90 days to secure a mortgage and buy out the other partner’s equity.
- Review triggers: Agree in advance when the Cohabitation Agreement should be reviewed or updated. Common triggers include the birth or adoption of a child, receiving a significant inheritance, one partner taking a career break or experiencing a substantial reduction in income. It can also be sensible to include a scheduled review, such as every five years, even if circumstances haven’t changed.
- Wills and life insurance: A Cohabitation Agreement sets out arrangements during your lifetime, while a will determines what happens to your assets after your death. If you want to make sure that these arrangements work together, both partners should consider putting appropriate wills and life insurance policies in place and reviewing them alongside the agreement. This can provide greater protection for both partners and help ensure the surviving partner is financially supported.
How are children covered in an agreement?
A cohabitation agreement can set out how parents plan to share the financial responsibilities of raising their children, including daily living costs and agreed maintenance payments. However, it cannot override court powers regarding parental responsibility or residence, nor can it prevent a future assessment by the Child Maintenance Service (CMS) under the Children Act 1989.
Checklist: What do I need before getting an agreement?
Before getting an agreement, make sure you have prepared:
- Financial disclosure: A completed dual column schedule listing all personal bank balances, investments, properties, and prior debts.
- Deposit proof: Financial paper trails (bank statements, gift letters, or solicitor completion statements) confirming the origin of property deposit funds.
- Living expenses breakdown: A documented breakdown of fixed monthly running costs (mortgage or rent, council tax, utilities) and an agreed percentage split based on income.
- Lender consent form: A Mortgage lender Occupier’s Consent or Waiver form if one partner is moving into a property solely owned by the other. If you are moving with your partner into a home you don’t own and want to know your rights, read our blog: Do I have property rights over my partner’s house.
Are Cohabitation Agreements legally binding?
What makes a Cohabitation Agreement legally enforceable?
For the contract to hold up in court, it needs to cover three legal criteria:
- Executed as a Legal Deed: The document must be executed as a formal legal Deed, signed in physical wet ink by both parties, and witnessed by an independent adult.
- Full Financial Disclosure: Both parties must disclose their true financial picture in an appended Schedule of Assets. Concealing assets makes the agreement voidable under contract law.
- Independent Legal Advice (ILA): Both individuals must receive independent legal advice from separate, qualified solicitors to eliminate any future claims of duress or undue influence.
Can I use a DIY template or get one online?
Free DIY templates frequently fail when challenged in court. They typically lack formal asset schedules, solicitor verification certificates, or proper jurisdiction clauses. Judges can also set aside generic template contracts if one party was at a serious financial disadvantage and did not have legal advice. This is known as the legal doctrine of unconscionability.
Modern digital legal services streamline ID verification, document sharing, and initial drafting online, but legal enforceability still requires independent solicitor signoffs (ILA) and physical wet ink signatures. We can guide you through the process of setting up a valid cohabitation agreement online.
Key legal and financial risks for unmarried couples
Risk Level | Scenario | Potential Impact and Legal Reality |
|---|---|---|
Critical Risk | Relying on Common Law Myths | If the relationship breaks down, a non owning partner could be left homeless with zero financial claim, while the owning partner faces a potential £50,000+ TOLATA court battle to establish rights or evict. |
High Risk | Using a Free DIY Online Template | Without full financial disclosure and Independent Legal Advice (ILA) signoffs, a judge can completely strike out the document under the doctrine of unconscionability, leaving you with no protection. |
Moderate Risk | Failing to Update an Old Agreement | If you have children, take a pay cut, or receive an inheritance, an outdated agreement will not reflect your current financial reality or protect you against Child Maintenance Service (CMS) reassessments. |
Is a cohabitation agreement a Deed of Trust?
No. A cohabitation agreement and a Deed of Trust are two different legal documents, each with a different purpose.
- Deed of Trust: A Deed of Trust, also known as a Declaration of Trust, deals specifically with property ownership. It can record how much of the property each person owns, particularly where they have made different financial contributions. For example, it could record that one person owns 70% and the other owns 30% because one contributed more towards the deposit.
- Cohabitation Agreement: This covers a much wider range of issues relating to living together. In addition to setting out arrangements for the property, it can cover household bills, joint bank accounts, individual debts, personal belongings, and responsibility for pets.
Although their purposes are different, couples who own a home together may choose to use both. The Deed of Trust can set out each person’s share of the property, while the Cohabitation Agreement can deal with the wider financial and practical arrangements of living together.
How do I register and protect my agreement at HM Land Registry?
You don’t register a Cohabitation Agreement itself with HM Land Registry. After all, it is a private legal contract containing personal information, such as financial arrangements, debts, and agreements about pets.
Instead, your property solicitor can extract the property specific terms, usually through a linked Declaration of Trust, and protect them on the property title using a Restriction or Notice. The right approach depends on how the property is legally owned.
Joint owners: Form A Restriction
If both partners are registered owners, they should usually hold the property as Tenants in Common where they have agreed unequal contributions or specific arrangements for dividing the equity.
A Form A Restriction records the existence of a trust and prevents a sole registered owner from giving a valid receipt for sale proceeds. In practice, this means that a sale or other transaction involving the beneficial interest will generally require the trust to be properly dealt with.
Sole owner: Form N Restriction
If only one partner is registered as the legal owner, but the other has contributed towards the deposit or mortgage, a Form N Restriction may be used to protect the non owner's agreed interest.
This can require the owner's written consent before certain transactions can be registered, helping to prevent the property from being sold or mortgaged without the non owner's interest being addressed.
Alternative for sole owners: Agreed Notice
If a Restriction is unsuitable, especially where a mortgage lender has concerns, an Agreed Notice may provide an alternative. If the owner won’t cooperate, a Unilateral Notice may sometimes be appropriate.
A Notice is entered on the property title to record the claimed beneficial interest. This puts buyers, lenders, and property solicitors on notice that another person may have a financial interest that needs to be dealt with.
How much does a Cohabitation Agreement cost?
The cost of a cohabitation agreement ranges from £700 to £3,000.
The more complex and time consuming to draft the agreement, the more expensive it will be.
How long does it take to draft an agreement?
On average, the process takes 2 to 4 weeks from your initial instruction to the final signing of the executed Deed.
Frequently Asked Questions
Andrew Boast FMAAT is a qualified accountant, conveyancing specialist and author with over 25 years of experience in the UK property sector. Since beginning his career in 2000 within established SRA and CLC-regulated conveyancing solicitor firms, Andrew has overseen the legal journeys of more than 75,000 clients.
He is the self-published author of the first-time buyer guide: How to Buy a House Without Killing Anyone, and a frequent contributor to mainstream UK media on legislative updates, property law, first-time buyer guides, conveyancing best practices, and stamp duty changes. Andrew specialises in resolving complex title issues, property conflict disputes, and property tax options, streamlining the enquiry process to reduce transaction times and maintaining a client-friendly focus.
Amanda Ambler is a highly accomplished conveyancing specialist with over 15 years of dedicated experience across residential property law, legal compliance, and practice management. Having held senior roles, including Head of Legal Practice and Head of Conveyancing at established UK law firms, Amanda possesses a profound, hands-on understanding of the technical intricacies of the property market.
As the designated Legal Content Reviewer for SAM Conveyancing, Amanda ensures that every guide, legal update, and resource published meets the absolute highest standards of accuracy, regulatory compliance, and factual integrity. Her rigorous review process guarantees that complex property legislation and industry processes are communicated clearly, transparently, and safely for home buyers and sellers alike.
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