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Cohabitation agreement meaning

Published by a LexisNexis Family expert
What does Cohabitation agreement mean?
A cohabitation agreement sets out how unmarried partners living together will own, manage and divide property and finances while cohabiting and on separation. It typically covers property shares (often with a declaration of trust), mortgage or rent and bills, bank accounts, contents and pets, sale or buy‑out on separation, and dispute resolution. It cannot restrict children’s financial rights or override statutory schemes (for example, the Child Maintenance Service or Schedule 1 Children Act 1989). In England & Wales and Northern Ireland, the term is descriptive and not statutory. Such agreements are enforced under general contract law (often executed as a deed), subject to intention, certainty, disclosure, absence of duress/undue influence and public policy. Independent legal advice is strongly recommended. In Scotland, partners commonly use a minute of agreement, which can be registered for preservation and execution. It may regulate property and financial matters and settle or limit claims under the Family Law (Scotland) Act 2006. In Ireland, the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 recognises such agreements. They must be in writing and signed, with each party having independent legal advice (or a valid waiver), and must not be inequitable or prejudice dependent children.
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NEWS
England and Wales family law weekly: pre-nuptial agreements, needs and sharing; domestic abuse as conduct in financial remedies; children jurisdiction and fact-finding updates; new precedents and LexTalk community

In this issue: Financial provision LexTalk®Family: a Lexis®Nexis community Daily and weekly news alerts New Practice Notes Updated content Useful information Financial provision Pre-marital agreement, needs and the impact of excluding a sharing claim (AH v BH) In AH v BH [2024] EWFC 125, Mr Justice Peel reviewed a pre-marital agreement that, if enforced, would significantly restrict the wife’s financial remedy claims. The resources were considerable, about £50m, with almost everything in the husband’s sole name. The relationship was relatively brief, spanning roughly five-and-a-half years, including a period of cohabitation before the wedding. There were two dependent children of the marriage, aged two and four, and the wife continued as their primary carer. Katie Skinner, senior associate and chartered legal executive at Rayden Solicitors, explores the key issues and evaluates the judge’s handling of the allocation of assets as well as...

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PRACTICE NOTES
Directive 2004/38/EC: family members of EU/EEA citizens—definitions, dependency, entry and residence rights, marriages of convenience (Commission Handbook), cohabitation, and Surinder Singh returning citizens

There are two classes of family members of EU nationals under Directive 2004/38/EC (the Citizens' Directive): 'family members'—who enjoy the Citizens’ Directive’s full protections as an entitlement, individuals in 'durable relationships' with an EU national and 'other family members'—for whom Member States must facilitate entry and residence under their domestic rules This Practice Note addresses ‘family members’ as defined in Article 2 of the Citizens’ Directive. For information on durable partners and ‘other family members’, see Practice Note: 'Durable relationships’ and ‘other family members’ of EU nationals—definitions and rights of entry and residence. Note that, throughout, 'EU nationals' also covers nationals of the European Economic Area (EEA), comprising the EU Member States together with Norway, Iceland and Liechtenstein. Switzerland is party to the Agreement between the EU and the Confederation of Switzerland, with free movement rules that are very similar to those set out in the Citizens’ Directive. For details of when dual EU citizens fall within the scope...

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PRACTICE NOTES
Cohabitation agreements: drafting guidance on financial provision, property rights, children, death, variation, separation, and unenforceable terms (England and Wales)

This Practice Note outlines guidance on clauses that may appear in a cohabitation contract or agreement, covering financial provision, property interests, arrangements for children and variation, and highlights terms that are likely to be unenforceable. When preparing a cohabitation contract, the usual contractual requirements should be observed. Depending on the nature of the parties’ assets, they should also consider entering a deed of trust at the same time—see Practice Note: General principles—cohabitation contracts. A Precedent letter for clients contemplating a cohabitation contract/agreement is available: Cohabitation agreements—client guide. See also Precedent: Cohabitation contract. Terms Although cohabitation contracts can be wide-ranging, provisions such as stipulating how much time the couple must spend together are unlikely to be enforceable (see Balfour v Balfour). Agreements drawn up overseas may reflect different priorities, yet the same enforceability issues will arise if a dispute is heard in this jurisdiction. More practical, outcome-focused clauses may include: Financial provision for the parties—arrangements for meeting day-to-day outgoings, including responsibility for payment...

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PRECEDENTS
Precedent Cohabitation Agreement (Deed): Property, Finances, Wills, Pensions and Termination (England and Wales)

This Deed is executed on [ insert date and month ] 20[ insert year ] Parties [ Insert name of first party ] of [ insert address of first party ] (referred to as AB: [ insert first and last name of first party ]) [ Insert name of second party ] of [ insert address of second party ] (referred to as BC: [ insert first and last name of second party ]) Recitals The parties intend that this Deed shall have binding legal effect upon them, together with their respective personal representatives and estates. [ Both parties acknowledge they have had the benefit of independent legal advice regarding the terms and effects of this Deed OR [ AB OR BC ] has obtained independent legal advice concerning the terms and effects of this Deed and [ BC OR AB ] has been advised to do so ] . Each party has agreed to this Deed...

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