How Important is a Cohabitation Agreement
With the latest winners of Love Island, Jack and Dani, recently announcing that they have bought a flat together, Family law specialist, Melissa Markham of Whitehead Monckton reminds us all of the need to have a cohabitation agreement when moving in together.
Melissa says when a couple invest in property together or, indeed, when one party invests in a property for them both to live in, they create a financial arrangement between them. However, the law as it stands provide little, if any protection for them unless they are married as there is no such thing as a common law spouse. So if their relationship breaks down and there is a dispute over how the property should be divided the courts would look to out dated trusts and property laws to decide this issue. The court will need to decide what the parties’ intentions were when they agreed their financial contributions and to do so will have to examine the parties’ financial history. This can be an extremely costly and drawn out process and often results in a very unsatisfactory outcome for one or both parties.
Drawing up a Cohabitation Agreement to clarify the parties’ intentions makes matters clearer and less ambiguous and enables both parties to know exactly where they stand should their relationship break down. Contact a member of the family team here and discuss your requirements and protect your financial interests.