Cohabitation Agreements in Scotland: What You Need to Know

Living together before marriage is increasingly common, with many couples opting not to legally formalise their relationship. However, the belief that “common law marriage” grants legal rights to cohabiting but unmarried partners is a myth.

What is a cohabitation agreement?

A cohabitation agreement records an arrangement between two or more people who have agreed to live together, as a couple or otherwise. It records each party’s rights and responsibilities in relation to the property where they live or intend to live together, financial arrangements between them, both during and following cohabitation and the arrangements to be made if they decide that they no longer want to live together.

Importance of Cohabitation Agreements

Unmarried couples living together do not have the same legal rights as married couples or those in civil partnerships. While they may have limited rights, such as claims on financial contributions towards property, financial support for children, and claims upon a partner’s death, they are generally unprotected.

Cohabitation Agreements: Key Benefits

• Property Rights: Clearly defines each party’s interest in the property, reducing disputes and costly litigation.

• Financial Flexibility: Allows couples to organise their finances as they wish during and after cohabitation.

• Future Security: Particularly useful for those starting new relationships after divorce or civil partnership dissolution, protecting individual financial security and future inheritance for children.

When to Create a Cohabitation Agreement

A cohabitation agreement can be drawn up at any point in a relationship. Regular updates are crucial, especially after major life events like buying property, having children, or receiving an inheritance.

What to Include in a Cohabitation Agreement

• Pre-existing Property: Clarifies ownership of property bought separately.

• Household Bills: Details contributions to mortgage payments and how joint bills will be handled post-breakup.

• Inheritance and Wills: Ensures that partners inherit each other’s estates, emphasising the importance of having an up-to-date will.

Independent Legal Advice

For a cohabitation agreement to be legally binding, both parties must demonstrate they agreed willingly and fully understood the terms. Independent legal advice is crucial for this process.