Kate and Jerry decided to live together for a few years as a trial run before marriage. They were happy and content living this way and it never occurred to them to get married. Forty years later, Jerry died of stroke without leaving behind a will. Although they lived together for a long time, Kate did not inherit his property nor was entitled to his pension since she was not legally wedded to him. Kate was placed in a financial mess which could have been avoided if they had signed a cohabitation agreement.



Why do you need a legally binding agreement?

Today, marriage is being replaced by cohabitation in a lot of countries around the world. In the UK alone, more than 70% couples cohabitate. The increase in the cohabitation rate is primarily due to the increased divorce rates, decline of faith in the institution of marriage and the want to check out the compatibility with their partners before marriage.

Surveys indicate that at least one out of two cohabitating couple do not realise that they are not entitled to the same rights and privileges as their married counterparts. Couples who lack awareness of the same have found themselves in trouble later. They should acquaint themselves with the following circumstances:

Finance

• When one of the individual dies, the other one does not automatically inherit what belongs to the partner.



• On the partner's demise, they are not entitled to his pension or other benefits.



• On separation, they need not pay any maintenance even if the partner is financially dependent on them.

Responsibilities

Unless registered as the child's father in the birth certificate, he would not be granted parental responsibility. This means that he would not be entitled to make medical decisions for the child or get the child's custody upon the death of the child's mother.

Rights

• On separation, you cannot continue to live in the house if the tenancy is signed in your partner's name and he wants you to move out.



• On separation, you cannot continue to stay in the house owned by your partner, if he does not want you to live there.

Advantages Of A Cohabitation Agreement

By having a cohabitation agreement in place you can safeguard your rights against most of the issues discussed above. A properly drafted agreement would help you sort out things cordially and avoid spending a fortune towards legal proceedings. Some of the benefits of a cohabitation agreement are as follows:

• Helps you inherit your partner's property upon their death



• Allows you to acquire your partner's insurance and pension in the event of their death



• Provides you the authority to make medical decisions for your child



• Provides rights to your partner to make medical decisions for you during times of emergency



• Protects your entitlement to share your partner's property on separation



• Aids in deciding your child's custody and maintenance on separation



• Indicates how the household expenses can be shared between the couple during the cohabitation

The Procedure

If you are worried about spending time looking out for a solicitor and paying a huge legal fee for getting your agreement ready, then, there's good news. There are a lot of websites that provide these services. You can have a cohabitation agreement drafted by professionals within minutes. These services are available at competitive prices between ?10 and ?50. Some websites also allow free download of the cohabitation agreement form. Once you purchase the form, get your agreements signed in front of witnesses to legalise the agreement.

At times of crisis, a cohabitation agreement helps you reach an amicable solution with your partner instead of undergoing mental stress and spending a huge fee towards legal proceedings. Even if there is no problem in the relationship and you lead a happy life, a cohabitation agreement helps to protect your partner's rights and show your love and concern. A few minutes of your time and a few pounds is definitely a wise investment towards a stress-free and happy future.