Cohabitation agreements: a practical guide to living together

Cohabitation agreements, also called living together agreements, allow people who share a home to set out clear financial arrangements during cohabitation and if it ends. In England and Wales, they are especially useful because there is no concept of a “common law spouse”.

Who can use a cohabitation agreement?

A cohabitation agreement or living together agreement is not limited to couples. It can also be used by people sharing a home in other arrangements, including those in polyamorous relationships, polygamous relationships, family members, and unrelated housemates who are not in a relationship.

Cohabitation agreements are relevant whether the property is jointly owned or held in one cohabitee’s sole name.

What can a living together agreement cover?

A well-drafted cohabitation agreement can address everyday finances and future scenarios, including:

• What happens to the home if someone moves out
• How any equity in the property will be divided
• How mortgage, rent, utilities and other outgoings will be paid
• Who owns the contents and how they will be divided if cohabitation ends
• Pet ownership, day-to-day costs and who keeps pets if cohabitation ends
• Treatment of joint bank accounts and savings

These practical issues often fall outside the scope of the court’s powers in cohabitation disputes, which is why planning ahead matters.

How does TOLATA fit in?

When cohabitees cannot agree about property on separation, court applications are usually brought under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA). A TOLATA claim can ask the court to:

• Decide each cohabitee’s financial interest in the property
• Order a sale of the property
• Determine whether a cohabitee has the first right to buy the property before it is marketed

However, TOLATA does not resolve wider living-together issues such as how outgoings were to be shared, who keeps furniture or pets, or how joint accounts are handled. TOLATA proceedings can also be costly, time-consuming and narrow in focus compared with the broader, bespoke solutions available through a cohabitation agreement.

Why make a cohabitation agreement?

A cohabitation agreement helps to:

• Reduce uncertainty by agreeing terms in advance
• Minimise the risk of disputes and the need for TOLATA litigation
• Protect contributions and expectations regarding the home and belongings
• Provide clarity around pets, joint accounts and day-to-day living costs

When should we put the agreement in place?

You can enter into a cohabitation agreement before moving in together or after you have started living together. If you are purchasing a property, it is advisable to complete the agreement before completion of the purchase so that ownership shares and contributions are clearly recorded from the outset.

Are cohabitation agreements legally binding?

Cohabitation agreements are contracts. Provided they are properly drafted, signed, and each party has had the opportunity to take independent legal advice, the courts generally uphold them as a record of the parties’ intentions, particularly on property and financial arrangements. They should be reviewed if circumstances change, for example on the birth of a child or a significant change in contributions.

Key takeaways

• A cohabitation agreement or living together agreement sets clear financial terms for people sharing a home.
• TOLATA can determine property interests and sale but does not address day-to-day issues such as contents, pets or living costs.
• Agreeing matters in writing reduces disputes, costs and uncertainty.
• Ideally finalise the agreement before completing a property purchase.
• Seek independent legal advice to ensure the agreement is robust.

FAQs

What is a cohabitation agreement?

A cohabitation agreement is a contract between people who live together that sets out how property, contents, outgoings, savings and pets will be handled during cohabitation and if it ends.

Do we need a cohabitation agreement if the home is in one person’s name?

Yes. A cohabitation agreement can clarify contributions, living costs and what should happen if one person moves out, even if only one person owns the property.

What happens if we split up without a living together agreement?

You may need to negotiate or, if you cannot agree on property interests, consider a TOLATA application. Without an agreement, disputes can be longer and more expensive to resolve.

When should we sign a cohabitation agreement?

Ideally before moving in or, if buying a property, before completion. You can also sign one after moving in and update it if circumstances change.

Do we both need independent legal advice?

Yes. Independent advice helps ensure the agreement is fair, understood and more likely to be upheld.

Speak to our family team

If you would like tailored advice on a cohabitation agreement or living together agreement, please contact our family team on 0345 070 6000. We would be pleased to help.