Cohabitation contracts

The unfortunate reality is that in a long relationship where only one party develops earning power or pension resources, often at the expense of the other party, the other party is bound to be left financially exposed.  During the relationship the position may be abused by the more financially powerful partner.  Should the relationship break down the same partner will often be the more aggressive over distribution of assets, leaving the vulnerable partner scared about seeking what they are truly entitled to.

Cohabitation contracts seek to record at an early stage of a relationship what is agreed about financial and property issues for the future.  They are often entered into in when both parties are seeking to demonstrate how fair they are trying to be to each other.  At their simplest they act as a written record of what had already been said by the parties to each other and any agreement reached.  The idea is to provide a fair and efficient means by which the financial coupling can be brought to an end while recording a basic level of capital entitlement.

A cohabitation contract cannot completely oust the jurisdiction of the Court.  There are always circumstances where the Court can still intervene despite any contract.  The most obvious examples are where there are children or allegations of abuse.  However, they provide a starting point and unless there is good reason they will normally be followed.

While you may be concerned at the cost of entering into a cohabitation contract, the potential costs that would be incurred at the end of a relationship sorting out the finances if a dispute arose make this pale into insignificance.  More importantly, without a cohabitation contract you could end up losing your home as a result of a claim.

We provide a simple and (relatively) cheap service to parties wishing to enter into a cohabitation contract.  To discuss this and any concerns you may have please call us on (01525) 373322 for free initial advice.