Cohabiting couples - a growing trend, why it’s best to get it right in the first place

The office of national statistics recently revealed that the number of cohabiting couple families are growing faster compared to married couple and lone parent families, with an increase of 25.8% over the decade 2008 to 2018. There has also been a 50% increase in same-sex couple families since 2015. 

People certainly have more choices than previous generations and the pressure or expectation to marry has reduced. Boris Johnson and his partner recently became the first unmarried couple to live at 10 Downing Street. 

Often people will choose to live together and put their money towards getting on the property ladder as opposed to an expensive wedding.

Cohabitation however gives no legal status to a couple in the way that marriage and civil partnerships do. This is regardless of the number of years a couple have lived together and even if they have children. The common misunderstanding that a couple has a ‘common law marriage’ after living together for a period to time simply does not exist.

The Law Commission published a report in 2007 with recommendations to provide some financial security for cohabiting couples who separate, but these recommendations have not yet been implemented. The way the law currently stands, cohabiting couples have no guaranteed rights to ownership of each other’s property. It is possible for one person to claim an interest in a property owned in the sole name of the other if they can show a beneficial interest. Couples who own a property in their joint names may also in certain circumstances be able to bring a claim that the shares in which they own the property should be adjusted. The technical rules of trusts and proprietary estoppel apply which are complex and can result in costly court proceedings.

If you are considering moving in with you partner, it is advisable to enter into a cohabitation agreement, or living together agreement. The agreement would set out what you would wish to happen if the relationship ends. In the event of separation, the court will usually follow the terms of a cohabitation agreement if it is fair, both parties made fully disclosure to each other of their financial positions at the time the agreement was made, and both parties took independent legal advice before signing.  A cohabitation agreement can set out the position where a couple own different shares in property at the beginning of the relationship or at the point when a property is purchased. If not done correctly at the time, it can be very difficult to row back at a later stage when a dispute arises.

Our family team at Knights can advise whether a cohabitation agreement would be appropriate in your circumstances. We work closely with our conveyancing and private client teams to ensure assets are protected as much as possible against the eventuality of relationship breakdown. Contact us for further information.