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Cohabitation Agreements

Couples who live together but do not marry can still have similar rights to married couples,  despite the Government’s U-turn on giving cohabiting couples more rights, says the Law Society

The Law Society has stated that despite the Government’s decision to drop plans to give couples that live together similar rights to married couples, unmarried couples can sign a cohabitation agreement which would give them stronger rights should their partner die or should the couple separate.

The Law Society guidance states that cohabitation agreements which are drafted by a solicitor could potentially put cohabiting couples in a better legal position than their married counterparts should the relationship breakdown. Under current law cohabitation agreements can be prepared for hetrosexual as well as same sex couples.

Law Society President John Wotton said“Although the Government has chosen not to legislate to give cohabiting couples the same rights as married couples, couples can sit down with their solicitor and draft a cohabitation agreement which caters for all eventualities. Unlike pre-nuptial agreements for married couples, cohabitation agreements are recognised by the courts in England & Wales as being legally binding. It is not yet established that pre-nuptial agreements for married couples are binding in the courts In light of the Government’s decision not to give live-in couples the same rights as married couples, there is perhaps a greater need for cohabiting couples to make these agreements as they do not have the same automatic protections as married couples. For example, when a spouse dies their husband or wife gains ownership of their estate in the absence of a will.”

Cohabiting couples should seek legal advice from their solicitor when drafting cohabitation agreements, as often there is more than a home that needs to be considered. Child care and other assets need to be taken into account, as well as property rights.

The Society also urges cohabiting couples, in the absence of protections under intestacy laws, to write wills to ensure their partner does not go without should they pass away. Without a will it is possible someone could end up with nothing from their partner’s estate.

The Law Society provides guidance to couples living together in their article Setting up Home with Your Partner

If you are considering entering into a cohabitation agreement with your partner, telephone us on 020 8401 7352 for a free telephone consultation and guidance or, to book an appointment.

Link to our page on Cohabitation Agreements

Telegraph article: How unmarried couples can have greater legal rights than husbands and wives (13.09.11)

Law Commission’s Prenuptial Agreements Consultation

Law Commission Publishes Marital Property Agreements Consultation

Tuesday 11 January 2011 

In recent years there has been strong support for a change in the law calling for pre-nuptial agreements to be made legally binding.

The Law Commission has today launched a consultation paper, asking for views on a range of potential options for reforming the law of pre-nuptial, post-nuptial and separation agreements. The paper comes just a few months after the historic Supreme Court judgment of Radmacher vs Granatino, which many had thought paved the way for pre-nups to become binding.

The consultation paper is viewed by many as a first step toward making prenuptial agreements binding under English Law. The consultation paper sets out the challenge of reforming the law in such a way that gives couples greater financial certainty whilst protecting the vulnerable from entering into unfair agreements. However one area of concern has always been the fate of children, particularly thise born after the parties enter into prenuptial agreements. The welfare of children during and after divorce has always been an integral concern of the English legal system in relation to divorce. The consultation from the  Law Commission closes on 11 April 2011.

The consultation documents can be downloaded and viewed from here:

Marital Property Agreement Consultation – published 11 January 2011

Full Consultation Paper

Summary Consultation Paper

Law Commission Press Release

Common Law Marriage & Living Together Agreements

In the words of Lord Justice Rimer:

‘Overall, this is an unusual case in which a joint owner of property had deliberately come off the title deeds, failed in his bid to prove and express agreement that he was to retain his beneficial interets and admitted that he had later rejected the idea of going back on to the deeds because he did not want to put the property at risk of claims by others’, who were chasing him for his debts. As a consequence of Mr Wade’s conduct, the Court of Appeal has ruled that he is entitled to no share of a house purchased when the couple first started living together in 1982 and which they shared until 2005 when the split-up. The problem here was that for various reasons Mr Wade has chosen to have his name removed from the deeds of ownership of the house. When the relationship came to an end, Mr Wade applied to court claiming that he was entitled to a 50% share of the property and, also a company they ran together. The court of appeal refused Mr Wade’s application.

This is a common situation and again underlines the dangers faced by cohabiting couples in the absence of a properly drawn up agreement setting out the nature of their financial arrangements together. Had Mr Wade and Ms Bayliss set out the terms of their financial dealings in a ‘living together agreement‘, Mr Wade would not have walked out of court with nothing. A living together agreement is an inexpensive document which can protect parties when a living together relationship comes to an end. Sadly, Mr Wade, like so many other people, had assumed that he was protected by the law due to his ‘common law marriage‘ or ‘common law relationship‘. What Mr Wade did not realise at the time is that although the concept of ‘common law‘ relationships exists very plainly in the English language, it has absolutely no basis whatsoever in the English law and simply does not exist!

If you are involved in a ‘living together relationship’ or a ‘common law relationship’, it would be naïve to simply assume that the law will protect your rights. The reality is far from that as Mr Wade has just discovered much to his disappointment. However you can protect yourself with a ‘living together agreement’ which should cost no more than a few hundred pounds and will help to protect tens if not hundreds of thousands of pounds of your assets. Call us on 020 8401 7352 for a free 30 minute telephone consultation to discuss your requirements for a ‘living together agreement‘ or indeed any other aspect of cohabitation, marriage, divorce or childrens law.

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