A guide to prenups and cohabitation

What is a prenuptial agreement?

A prenuptial agreement (often called a prenup) is a contract made between two parties before they marry. A prenup specifies an agreed settlement with regards to property and other assets in the unfortunate event that your marriage breaks down.

While they are often regarded as simply a way for rich people to protect their assets when they marry someone less wealthy, that isn't the only purpose of a prenuptial agreement. In fact, a prenuptial agreement can be a good way to start your marriage in a spirit of openness and honesty. This is especially true if it is drawn up in such a way as to ensure that you would both be able to move on in your lives with financial security in the event of divorce.

What can be included in a prenuptial agreement?

A prenuptial agreement should include details of how any property or financial assets you and your partner own are split in the event of a divorce. An expert prenup solicitor can provide you with legal advice and guidance on what to include in your prenuptial agreement depending upon your personal circumstances, though common areas to include are:

• Ownership of property, including any property each spouse brings into the marriage and what would happen to the family home in the event of a divorce
• Money, including investments held separately, savings and money kept in joint accounts
• Responsibility for any debts, including those incurred separately before the marriage and those during

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Moving in with a partner is an exciting time, but if you aren’t married, you don’t have the same legal protection. A cohabitation agreement can be a good way of protecting your assets and safeguarding your future.

What is a cohabitation agreement? Sometimes called a ‘living together’ agreement, a cohabitation agreement is a legal document that sets out the rights and responsibilities of a couple who live together, the ownership of assets (including property), and what should happen if the relationship breakdowns later.

While it is a commonly held belief that living together, particularly if you’ve lived together for a while, makes you common law partners and gives you the same legal protection as married spouses or a couple in a civil partnership. However, this is not the case. The truth is that, without a legal agreement between the two of you, you don’t have any set legal rights regarding jointly owned assets.

Cohabitation agreements are a good way for couples who are not married or in a civil partnership to protect their rights and assets in the event of separation, and to define legally their responsibilities to one another.

What can a cohabitation agreement include?

A cohabitation agreement can cover a wide range of areas, though the exact content will depend upon your circumstances. It should set out who own which assets, either outright or as a proportion, and could cover things like:

• what each person’s share of the mortgage or rent is
• how the bills should be handled
• how ownership of any property should be split
• the ownership of any other assets, such as cars, furniture, and other high-value items
• how other financial issues should be dealt with, including life insurance, pensions, bank accounts, and the payment of debts
• ownership and responsibility of any pets

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