What is a co-habitation agreement?
A co-habitation agreement is a contract drawn up and agreed to by all parties involved with the property, which sets out provisions as to the owner of assets and whether the property should be sold and if so how the proceeds should be shared. The agreement can also provide the option to buy-out the other’s interest and set a time-frame within which a sale should occur.
The main purpose of the co-habitation agreement is to limit the risk of any dispute that might occur should there be a breakdown in a relationship or a change of circumstances for one of the parties.
Couples buying property together, did you know?
It is not uncommon for unmarried couples to buy property together. Unless you are in a marriage or a civil partnership, there is no right to seek financial support from one another or share in the other’s assets or income at the end of a relationship. Therefore, it is advisable that couples who move in together who are not married, to consider a co-habitation agreement.
Each party should seek their own independent legal advice.
Cohabitation agreements are becoming increasingly popular and while we should hope for the best, it is sensible to prepare for the worst. If we don’t, there are limited options available to resolve disputes. We are happy to discuss your individual circumstances, talk to our family law team today.