Parties who are not married to each other can chose to regulate the outcome of their relationship if it is not successful. The reasons for doing so can be numerous:
- A substantial difference in the income or assets of one party
- To protect assets you acquired before the marriage
- Your family contributed to your assets
A Cohabitation Agreement is an agreement made between parties who are planning to cohabit and want to regulate their living and financial arrangements. This can detail their current situation and what would happen if the relationship failed.
However it has the same problems as Pre-Nuptial agreements in that they are not legally binding
in the UK. What causes further difficulties is that there is no law governing cohabitation and the parties must rely on the general laws of contract.
we actively encourage clients to be proactive about their future and these types of agreements go a long way in protecting their future stability.