What are they?

An Agreement made between two people who are living together or intend to live together, which can regulate the terms of the relationship which is ongoing and make provision for the future should it break down.

Why are they important?

Parties who live together do not have the same rights in law as a married couple enjoy should the relationship fail. A Living Together Agreement therefore clearly sets out the intentions of the parties, and indicates to the Court that there was an intention between the couple to make their arrangements legally binding. The terms of the agreement can be enforceable in contract law.

A clear advantage is that an Agreement can introduce some certainty and achieve an outcome which the parties feel is fair and just in their circumstances, particularly with regard to the ownership of the house. The alternative is that they are at the mercy of the court, which will make decisions based on strict property law. Living Together Agreements therefore allow the couple to retain control of arrangements and can also be more cost effective rather than having to suffer expensive Court proceedings.

How enforceable are they?

If carefully drafted and properly entered into, the courts are very likely to uphold their terms. It is therefore important that there is disclosure between the parties in relation to their financial circumstances before the agreement is entered into. Each party must have the opportunity to take independent legal advice, and no undue pressure to enter into the agreement should be placed on one party by the other. However, the jurisdiction of the Court can never be ousted.

What can be included in the Agreement?

Generally, they are used to regulate matters relating to the ownership and division of land, property and money. They can detail how debts will be dealt with and how day to day living expenses will be met. They can deal with other issues relevant to the relationship, but these are often better contained in a separate document.

What if we subsequently marry?

It may be the decision of the parties that this will result in the Agreement coming to an end. Alternatively, the Agreement can state that the provisions contained within in should be one of the factors for the Court to take into account should the marriage fail. A review clause should always be built into the agreement in any event so that its terms can be reconsidered on a regular basis or upon a major change in circumstances.

How do we agree its terms?

Your lawyer will help you to consider all of the relevant factors and to negotiate provisions which will meet your needs. They will help you to understand the financial aspect and the impact of proposals. If your lawyer is a trained collaborative lawyer, you may prefer this approach so that you can discuss matters directly with your partner, whilst still receiving support from your lawyer.

If you require further information on Living Together Agreements, please contact either Jane Cowley on 0116 247 3596 or email: jane.cowley@howespercival.com or Justine Flack on 0116 247 3564 or email: justine.flack@howespercival.com.