A Cohabitation Agreement is a legal contract between two people who live together as a couple in England and Wales but who are not married and are not in a civil partnership. It sets out the couple's agreement on how they will manage their financial affairs, property ownership, and other practical matters during their cohabitation, and what should happen if the relationship ends. Unlike many other jurisdictions, English law does not recognise the concept of 'common law marriage' and provides cohabiting couples with very limited statutory protection compared to married couples and civil partners.

The absence of a statutory framework for cohabitants in England and Wales means that when an unmarried couple separates, their property and financial rights are determined by the general law of property and trusts, not by family law. The primary legislation governing property disputes between cohabitants is the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA), which allows a co-owner or a person claiming a beneficial interest in property to apply to the court for a declaration of their interest or an order for sale. However, TOLATA does not give the court the broad discretionary powers available under the Matrimonial Causes Act 1973 to redistribute property between divorcing spouses based on fairness or need.

The Law Commission recognised this gap in its landmark 2007 report, Cohabitation: The Financial Consequences of Relationship Breakdown (Law Com No 307), which recommended the introduction of a statutory scheme to give cohabitants limited financial remedies on separation. Despite widespread support from the legal profession, the recommendations were never implemented. In February 2025, the government announced a formal consultation on cohabitation rights reform, but as of early 2026 no legislation has been introduced.

A Cohabitation Agreement fills this gap by creating a private contractual framework that documents the couple's intentions regarding property, finances, and separation. Where properly drafted and entered into voluntarily with full financial disclosure, English courts have upheld cohabitation agreements as binding contracts. Independent legal advice for each partner significantly strengthens the enforceability of the agreement.

A Cohabitation Agreement is advisable for any couple in England or Wales who are living together or planning to live together without being married or entering into a civil partnership. The agreement is particularly important in the following circumstances.

When one or both partners own property, a cohabitation agreement clarifies each person's beneficial interest in the property and prevents disputes about ownership shares if the relationship ends. Without a written agreement, the non-owner partner may need to bring a TOLATA claim and prove the existence of a constructive trust or resulting trust, which is uncertain, expensive, and time-consuming. In Stack v Dowden [2007] UKHL 17, the House of Lords confirmed that where property is in one partner's sole name, the starting point is that the legal owner holds the entire beneficial interest, and the burden falls on the other partner to prove a different intention.

When partners are buying a property together, a cohabitation agreement (or a separate declaration of trust) should specify whether the property is held as joint tenants or as tenants in common, the percentage share each partner holds, how mortgage payments will be split, and what happens to the property on separation. This is especially important where the partners are contributing unequally to the purchase price or mortgage.

When one partner is significantly wealthier than the other, a cohabitation agreement protects the wealthier partner from claims that the other partner has acquired a beneficial interest in their assets through the doctrine of constructive trust or proprietary estoppel. It also protects the less wealthy partner by documenting any financial arrangement agreed between the parties.

When the couple has children or is planning to have children, a cohabitation agreement can document arrangements for childcare costs, education expenses, and living arrangements. While any provisions relating to children are subject to the overriding jurisdiction of the court under the Children Act 1989 and the Child Support Act 1991, a documented agreement provides a useful starting point.

When one partner is giving up work or reducing their working hours to care for children or manage the household, a cohabitation agreement can provide for financial compensation or support in recognition of that sacrifice, which would otherwise be unprotected under the law of England and Wales.

When partners want to protect their respective estates for their children from previous relationships, a cohabitation agreement combined with separate wills ensures that each partner's assets pass to their intended beneficiaries, rather than being the subject of a contested claim under the Inheritance (Provision for Family and Dependants) Act 1975.

A well-drafted Cohabitation Agreement for use in England and Wales must address several critical elements to ensure that it is enforceable and provides meaningful protection for both partners.

The status clause must confirm that the agreement is intended to be legally binding and that the parties are not married or in a civil partnership. It should record that each partner has entered into the agreement freely, voluntarily, and with full knowledge of its terms. A declaration of full and frank financial disclosure strengthens enforceability by addressing one of the most common grounds on which such agreements are challenged.

The property clause is the most important provision and must clearly state the ownership status of the shared home. If the property is held as tenants in common, the agreement should specify each partner's beneficial share and confirm that this is consistent with any declaration of trust. The clause should address what happens to the property on separation, including whether one partner has the right to buy out the other, and the mechanism for determining the property's market value (typically an independent RICS surveyor valuation).

The financial contributions clause should specify how mortgage or rent payments, council tax, utilities, and other household expenses are shared. It may provide for a joint bank account for household expenses, with equal or proportionate contributions. The agreement should also address each partner's financial independence, confirming that individual income, savings, pensions, and debts remain separate property.

Provisions for children must comply with the overriding principles of the Children Act 1989 and the Child Support Act 1991, and should acknowledge that the welfare of the child is the paramount consideration. The agreement should record any agreed arrangements for childcare, education costs, and living arrangements.

The separation provisions should specify the notice period for leaving the shared home, the process for dividing property and personal belongings, and any restrictions on financial claims. A mediation-first approach to dispute resolution, before resorting to court proceedings under TOLATA, is recommended and will be viewed favourably by the courts. The agreement should also address inheritance, encouraging each partner to make a will, and reference the limited inheritance rights available to cohabitants under the Inheritance (Provision for Family and Dependants) Act 1975. A review clause ensuring the agreement is reassessed at least every two years keeps it relevant as circumstances change.