A cohabitation agreement is a form of legal agreement reached between a couple who have chosen to live together (whether they are heterosexual or homosexual). In some ways, such a couple may be treated like a married

Marriage

Marriage is a social union or legal contract between people that creates kinship. It is an institution in which interpersonal relationships, usually intimate and sexual, are acknowledged in a variety of ways, depending on the culture or subculture in which it is found...

 couple, such as when applying for a mortgage

Mortgage loan

A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan...

 or working out child support

Child support

In family law and public policy, child support is an ongoing, periodic payment made by a parent for the financial benefit of a child following the end of a marriage or other relationship...

. However, in some other areas, such as property rights, pension

Pension

In general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment. Pensions should not be confused with severance pay; the former is paid in regular installments, while the latter is paid in one lump sum.The terms retirement...

s and inheritance

Inheritance

Inheritance is the practice of passing on property, titles, debts, rights and obligations upon the death of an individual. It has long played an important role in human societies...

, they are treated differently.

A cohabitation agreement contains documentation for a couple who want to live together in order to protect themselves from unnecessary cost and litigation should their cohabitation break down. They can clearly regulate their property rights and what arrangements might be made for mutual financial support, dealing with debt

Debt

A debt is an obligation owed by one party to a second party, the creditor; usually this refers to assets granted by the creditor to the debtor, but the term can also be used metaphorically to cover moral obligations and other interactions not based on economic value.A debt is created when a...

, caring for child

Child

Biologically, a child is generally a human between the stages of birth and puberty. Some vernacular definitions of a child include the fetus, as being an unborn child. The legal definition of "child" generally refers to a minor, otherwise known as a person younger than the age of majority...

ren, etc.

The agreement also, much like a prenuptial agreement

Prenuptial agreement

A prenuptial agreement, antenuptial agreement, or premarital agreement, commonly abbreviated to prenup or prenupt, is a contract entered into prior to marriage, civil union or any other agreement prior to the main agreement by the people intending to marry or contract with each other...

, allows the individuals concerned to determine in advance who will keep specific assets and what will happen to assets that have been purchased jointly if they separate. This agreement is intended to bind both parties.

Advantages

A cohabitation contract helps clarify financial commitments. Working out who pays what and how responsibilities are shared in running the home need sorting out for a harmonious home life. It is a good idea in that if the couple does break up, an altercation about who receives what may be less likely. However, the courts may occasionally change or ignore provisions set out in a cohabitation agreement if they feel that they are inadequate under the circumstances.

Disadvantages and limitations

There's no guarantee that a court will support the terms of a cohabitation contract in the United Kingdom

United Kingdom

The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

.
Thinking about and talking through all the issues that should be covered – including death

Death

Death is the permanent termination of the biological functions that sustain a living organism. Phenomena which commonly bring about death include old age, predation, malnutrition, disease, and accidents or trauma resulting in terminal injury....

, divorce

Divorce

Divorce is the final termination of a marital union, canceling the legal duties and responsibilities of marriage and dissolving the bonds of matrimony between the parties...

, and illness

Illness

Illness is a state of poor health. Illness is sometimes considered another word for disease. Others maintain that fine distinctions exist...

, often involve long, hard work. But talking about the terms of a contract could be looked on as a massive plus to a relationship, showing that it is mature enough to work through major decisions.

A cohabitation agreement will usually not be adequate to settle all legal issues that might arise, so a trust deed

Trust deed

Deed of trust may refer to:* Trust deed * Trust instrument, a legal instrument in common law systems* Trust Deed , used in Scottish law* Deed of Trust , music album...

 setting out property rights and a will

Will (law)

A will or testament is a legal declaration by which a person, the testator, names one or more persons to manage his/her estate and provides for the transfer of his/her property at death...

 are also recommended.

Common law marriage

In England

England

England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...

 and Wales

Wales

Wales is a country that is part of the United Kingdom and the island of Great Britain, bordered by England to its east and the Atlantic Ocean and Irish Sea to its west. It has a population of three million, and a total area of 20,779 km²...

, a couple can live together for 25 years without acquiring any legal rights to a share of the home or maintenance. However, the English courts have held that if one partner contributes to the mortgage or rental payment of the home, or have contributed in some other financial way such as contributing to the cost of repairs or improvements, then that partner gains a right to a share of the home.

Same sex couples

Some gay activists have been campaigning for legal recognition of their partnerships. Their campaigning for the right to take over a partner's tenancy of the family home on bereavement have been gained, regardless of any cohabitation agreement existing, but if a couple share a home their chances of buying the rights are much more limited.

In December 2005, the British government offered gay couples equal rights with married couples if they register a civil partnership legally. The government-backed scheme – which enables same-sex couples to qualify for next-of-kin entitlements on inheritance tax, pensions and property – is likely to attract many more couples.

There will still be large legal differences between civil partnership and marriage. For example, a couple can get married and have all the legal rights and benefits after knowing each other for only a few days, but a same-sex couple will almost certainly be required to show a lengthy commitment to each other before they are allowed to register their partnership. Currently, for immigration purposes, a same-sex couple must show they have a relationship of two years' standing, and it is likely that a similar term will be imposed for registering a partnership. Consequently, same-sex couples will need to make wills and a cohabitation agreement, to provide security in the event of break-up.

Legal changes ahead?

In 2002 the Law Commission recommended that cohabiting partners who lived together for two years should get the right to a share of their home if they separate, regardless of who paid for the property or its maintenance.

Prenuptial agreements

As afore mentioned, the term is also sometimes used loosely to refer to prenuptial agreements. These are often designed when one intends to protect his or her wealth in the event of the marriage ending in divorce. The contract aims to achieve a measure of certainty about what the financial "damage" would be if the marriage came to an end. However K v K (2003) has heightened the importance of prenuptial agreements by deciding that the wife had to stick by the terms of a prenuptial agreement she signed. The courts still keep their discretion about whether or not a prenuptial agreement will be upheld but this new case shows that the courts are in favour of couples making private agreements between themselves.