Deciding to move in together is a big milestone. It’s exciting and very much a sign that your relationship has progressed to the next stage.
But if you’re the one who already owns the property, it’s natural to have a quiet question lingering in the back of your mind, “Do I need to do anything legally to protect my home, just in case?”
Sure, this might feel less romantic, but it’s important to talk about, which is why I have created this guide. Below, we’ll talk about Cohabitation Agreements (sometimes called “living together agreements”), what they are and when they really matter.
What is a Cohabitation Agreement?
A cohabitation agreement is a written agreement between unmarried couples who live together. It sets out, in advance, what should happen financially if the relationship were to end. It acts as evidence for the terms you both agreed on should the relationship break down.
But try to think of it less as planning for disaster (or break up) and more as a calm, grown-up conversation about realistic expectations. These agreements can cover things like:
• Who owns the property (usually the most important aspect)
• Who pays what while living together
• What happens if you separate, and what you are entitled to
Do you need a Cohabitation Agreement?
The honest answer is no, you don’t always need an agreement.
Though there’s a widespread myth that once a partner moves in, they automatically gain rights to the home, in England and Wales, that simply isn’t true. There is no such thing as a “common law spouse” that magically creates property rights.
Essentially, if your new partner moves into your home, pays towards day-to-day living expenses (food, utilities, council tax, maybe a Netflix subscription or two) but does not contribute to the purchase price or major renovations, then they are not suddenly acquiring a share of your house.
If this were the case and the relationship ended, your ex-partner would face an uphill struggle trying to establish any legal rights to the property.
It’s also really important to understand at this point that the rights of cohabiting couples are not the same as the rights of married couples. If a marriage breaks down, the Matrimonial Causes Act 1973 allows the court to redistribute all available assets based on what is fair. The court can consider contributions, needs, children, and the overall financial picture.
Cohabitees do not have the same protection and claims between unmarried partners are completely different. They rely on property law and evidence of financial contributions or shared intentions – not fairness or needs.
When should you definitely seek legal advice?
If your partner is contributing significant sums towards renovations or extensions, paying towards the purchase price or mortgage, or funding improvements that increase the value of a property owned in the sole name of the other partner, then you should absolutely pause and take legal advice.
In those situations, disputes are governed by civil law, specifically the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA). Claims under this legislation can be complex, expensive, and emotionally draining.
A Cohabitation Agreement (or at least clear legal advice) can help avoid misunderstandings and protect both parties.
What if we want to buy a house together?
It’s not always going to be the case that one partner moves into the other partner’s house. Often, a couple will choose to buy a new home together. This also raises important legal questions.
In this situation, one of the simplest and safest ways to protect your respective interests is to put a Declaration of Trust in place at the point of purchase.
This is because many couples don’t contribute equally. One person might provide a larger deposit or take responsibility for renovation costs, and without a Declaration of Trust in place, it can be very difficult to prove what was intended.
A Declaration of Trust is a document that sets out:
• Who owns what share of the property
• What each person is contributing
• How equity should be divided if you separate or sell
• What happens if one of you pays more later on
• How to deal with renovations, improvements, or one person wanting to sell
Having a well-drafted Declaration of Trust in place should mean there’s no need for a Cohabitation Agreement.
It’s about peace of mind, not pessimism
Let’s get one thing straight here: a Cohabitation Agreement is not created because you expect the relationship to fail. It’s about clarity, transparency, and protecting what matters while you enjoy what should be a very happy and exciting time.
In many cases, especially where a partner is simply moving in and contributing to everyday living costs, a formal agreement isn’t strictly necessary. But understanding where you stand legally can be incredibly reassuring.
If the financial arrangements are more complicated or you plan to buy a home together, a short conversation with a lawyer can save a lot of stress later. A little foresight now can preserve both your home and the harmony of your relationship.
For more information, you can contact me on +44 1603 756470 or email me at Denise-Findlay@birketts.co.uk
