Cohabitation agreements and property disputes for unmarried couples [2026 update]
25th August, 2026
Despite widespread belief, the "common law marriage" myth remains exactly that – a myth. Under current English law, unmarried couples who live together do not share the same automatic legal rights as married couples or civil partners, regardless of whether they have been cohabiting for two years or twenty.
If an unmarried relationship breaks down, neither partner has an automatic right to claim spousal maintenance or a share of the other person’s assets, bank accounts, or pensions. At Ward Hadaway, our experienced family law solicitors provide practical, up-to-date legal support to help unmarried couples clarify their financial positions, protect their assets, and resolve complex property disputes.
What is a cohabitation agreement?
A cohabitation agreement is a formal, legally binding contract entered into by an unmarried couple who live together or plan to move in together. It clearly outlines who owns what and defines how property, savings, debts, and daily living expenses will be managed during the relationship and how they will be divided if the relationship ends.
A cohabitation agreement is a highly flexible document tailored to your unique circumstances. It is particularly valuable if:
- One partner owns the property you live in and you want to clarify that the non-owning partner will not establish or accrue a legal stake in it; or
- You want to agree on how household bills, mortgage repayments, and maintenance costs are shared; or
- You wish to protect independent inheritance, gifts from family members, or pre-existing assets.
Buying property together as an unmarried couple
One of the most critical times to put a cohabitation agreement in place is when you are purchasing a home together. If you are contributing unequal amounts toward the property deposit or making different contributions to the monthly mortgage payments, you cannot rely on the law to sort it out fairly later on.
Pairing a cohabitation agreement with a Declaration of Trust ensures that your exact financial contributions are explicitly documented and legally protected. This guarantees that if the property is sold in the future, you will both receive a fair return that accurately reflects your original financial investment.
Parents who are looking to gift money to their child for a house deposit should have a pragmatic discussion with their child where the child plans to cohabit and/or co-own the property with their partner. The parents are likely to want the deposit to remain with their child, and to be returned to them in the event of the property being sold upon separation. Obtaining early legal advice to ascertain how to proceed will provide the prudent financial protection.
What if we are already splitting up? Separation agreements
If you are an unmarried couple currently in the process of separating and you do not have a prior cohabitation agreement in place, you can still protect your interests by drafting a separation agreement.
A separation agreement takes the form of a contract, which allows you to formalise your split amicably without relying on costly court intervention. It records your agreed decisions on:
- How to handle the transfer of the family home to one party, or the arrangements for it’s sale and the division of the equity; or.
- How to split any joint savings or clear outstanding debts; or
- How any joint business interests will be divided;
- How possessions will be shared; and/or
- The financial support for children.
Pension assets cannot be shared between cohabiting couples. The sharing of pensions is only possible following a divorce.
The signed separation agreement is not submitted to the court; no court proceedings are required.
Resolving cohabitation property disputes (TOLATA)
When an unmarried relationship ends without an agreement and a conflict arises over who owns the home, it creates a hybrid family law/property law dispute, and the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA) applies.
Disputes can be resolved using NCDR methods, which is preferrable to commencing court proceedings. But if litigation be necessary, the court has the power to:
- determine the percentage property share that each party owns;
- order a sale of the property, where appropriate; and/or
- direct how a sale of the property should take place.
TOLATA litigation uses the Civil Procedure Rules rather than the Family Procedure Rules, and so it is vital to instruct a solicitor with expertise and experience in TOLATA cases. These types of cases are front-loaded and they are heavily reliant upon evidence, meaning that a great deal of the detailed work is required at the outset to establish the strength of the case and prospect of settlement. Every case turns on its own facts, and the available remedies will depend on your individual circumstances.
TOLATA litigation can quickly become expensive, highly technical, and emotionally draining. Having a robust cohabitation agreement during the relationship, and a separation agreement at the end of the relationship, is the most effective way to prevent a protracted court battle.
Contact our cohabitation and Family Law specialists
Whether you are looking to cohabit, buy a home together, or you are a parent gifting a deposit, getting the right legal framework in place early provides essential peace of mind, and avoids conflict and significant legal costs in the event of a future separation. If the relationship later breaks down, a separation agreement provides a clear route to share the joint assets, and certainty that no future claims will be made by each party.
Our specialist team at Ward Hadaway can advise on how best to preserve your assets, and can advise and represent you within complex TOLATA disputes. Call us today for a confidential, no-obligation conversation about your personal situation.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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