What is a cohabitation agreement?
Cohabitation agreements are used by people who live together to record their legal and beneficial ownership in their shared property and to regulate their financial and living arrangements, both during cohabitation and if they ever cease to live together.
The parties to the agreement do not have to be in a romantic relationship, but they can be. Often, cohabitation agreements are used by couples who have decided not to marry or enter into a civil partnership. The property concerned can be rented, owned solely by one cohabitee, owned by one or more cohabitees together or with a third party, or owned jointly by cohabitees in equal or unequal shares. Whatever the situation, it can be written into the agreement.
Having a cohabitation agreement in place and discussing each person’s rights and obligations at the outset of living together can help parties to avoid the personal negativity, cost and uncertainty of litigation if cohabitation ends. Cohabitation agreements can help to provide a sense of reassurance and financial security for the parties. For example, provisions can be put in place for financial support for the former partner if the relationship ever ends, particularly if they have children together.
There is some uncertainty about whether the terms of a cohabitation agreement will be upheld and enforced by the court, however, the general view is that if the cohabitation agreement is properly drafted as a legal contract, then it is more likely to be enforceable. Cohabitation agreements can be a complex area of law and therefore if you wish to discuss this further we would advise that you speak with one of our specialist family solicitors.
Related FAQs
Matrimonial assets tend to be those which have been generated or accumulated during the marriage whereas non-matrimonial assets tend to be assets which are acquired outside of the marriage such as assets owned before marriage or assets received by one party during the marriage without contribution from the other such as through inheritance or a gift.
The discretion of the court when making financial awards is wide ranging and the way the court will deal with this distinction varies from case to case so it is always important to seek advice about your particular circumstances. However, in broad principles, any asset which is “matrimonial” in nature is usually shared unless there is good reason not to. If an asset is non-matrimonial, an argument could be raised that there ought to be a departure from an equal share of the asset to reflect the fact it is from a source external to the marriage. However:
- If financial resources are limited such that a party’s needs cannot be met without using the non-matrimonial property, the fact it is non-matrimonial will carry little weight, if any.
- The family home is seen as core to the marriage and is often treated differently. It is invariably treated as a matrimonial asset even if it would have been non-matrimonial in nature.
- If a non-matrimonial asset has been intermingled with a matrimonial asset, a court may place less weight on the fact it started as non-matrimonial in nature.
- If the parties were married for a short period of time, a court may place greater weight on the fact that an asset is non-matrimonial and may be persuaded to allow a greater departure from equality than if the parties have been married for a long period of time.
The court will always have a mind to fairness and is likely to take a step back and consider whether the overall division of the assets is “fair” bearing in mind the parties respective financial and non-financial contributions to the marriage.
On 2 April 2020, the Government issued guidance relating to Private Finance Initiatives and PF2 Projects. The guidance, which is to be enforced with immediate effect (currently due to stay in place until 30 June 2020), is one of several guidance notes issued to date.
A link to the guidance is set out below:
Key messages to contracting authorities
- PFI contractors should very much consider themselves as being part of the public sector response to the current pandemic
- Covid-19 is not regarded as, and is not to be classified as a force majeure event
- PFI contractors must ensure that contingency plans are up to date and have been reviewed and discussed with contracting authorities to enable the continuity of full services to respond to the pandemic and maintain vital public services
- Contracting authorities should work closely with PFI contractors to use all available options to maintain public services during the emergency period
- Local arrangements should be made where PFI contractors can’t deliver the agreed requirements and performance standards
- “Best efforts” should be made by all parties for the continuation of service provision
The guidance is clear that furloughed staff must receive no less than 80% of their reference pay (up to the monthly cap of £2500).
Employers cannot enter into any transaction with the worker which reduces the wages below this amount. This includes any administration charge, fees or other costs in connection with the employment.
- Working with PFI providers to get contingency plans up to date
- If a PFI provider is struggling to achieve service delivery requirements due to Covid-19, then local arrangements should be put in place to:
- maintain unitary charge payments
- revise contract requirements/standards
moderating payment and performance regimes where appropriate.
- In any event, you may wish to review and adjust your requirements to reflect the current situation. It is possible that some requirements can be relaxed, whereas others need to be tightened. For example, there may be an increased need for cleaning and maintenance in certain areas of your PFI premises or the layout of the premises and/or room uses may have temporarily changed. With staff illness and shortage likely to be an issue, you may also wish to consider if the resource can be moved from one area to another to help maintain essential services.
- When putting local bespoke arrangements into place it is vital that:
- Contract requirements or performance standards are not relaxed to the point where health and safety are put at risk.
- It is made clear that the arrangements are temporary and that matters will return to normal as soon as the Covid-19 emergency is over. Indeed the guidance note makes clear that if assets temporarily close they should be kept in such condition that they can be immediately up and running when this emergency is over. In such instances, likely a basic level of maintenance and security will therefore be required as a minimum.
Follow up to date UK Government advice. This can be found at: https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/guidance-for-employers-and-businesses-on-coronavirus-covid-19
For best practice and more detailed information; consult the HSE’s website at https://www.hse.gov.uk/news/coronavirus.htm
Failing to follow the guidance is likely to be regarded as failing to take all reasonably practicable steps.