Relationship Agreements: Cohabitation, Pre-Marital and Post-Marital Agreements

Couples can enter relationships with very different financial circumstances. One person may already own a property, have greater savings or investments, expect an inheritance, own a business, or have assets following an earlier divorce or separation.

In these circumstances, it may be sensible to consider how finances and assets should be treated if the relationship later breaks down.

Relationship agreements can help couples discuss these matters in advance and clearly record their intentions. The type of agreement that may be appropriate will largely depend on whether you are living together, planning to marry or are already married.

Our Family Law team can advise you on the options available and the type of agreement that may be appropriate for your circumstances.

What Types Of Relationship Agreement Are There?

There are three main types of relationship agreement: Cohabitation Agreements, Pre-Marital Agreements and Post-Marital Agreements.

Cohabitation Agreements

A Cohabitation Agreement is intended for couples who live together, or plan to live together, without marrying or entering into a civil partnership. It may also be referred to as a living together agreement.

The agreement can specify how particular financial arrangements and assets should be handled during the relationship and what the couple intends to happen if they later separate.

It may be particularly worth considering where one person owns a property before the relationship, where a couple is contributing different amounts towards a home, or where either person has other significant assets or financial commitments.

Pre-Marital Agreements

Pre-Marital and Post-Marital Agreements are treated differently. They are not automatically binding on the court in England and Wales, but a properly prepared agreement can be given significant weight when the court is considering financial arrangements following a divorce.

The circumstances in which an agreement was prepared can therefore be important. Both parties should understand the implications of the agreement and have the opportunity to take appropriate legal advice.

For a Pre-Marital Agreement, it is also advisable to start the process well in advance of the wedding rather than leaving discussions until shortly before the marriage.

Why Seek Legal Advice About A Relationship Agreement?

A relationship agreement can have significant financial implications, so it must reflect your individual circumstances rather than relying on a standard document or online template.

Taking legal advice can help you:

• identify which type of agreement is appropriate;
• understand what assets and financial arrangements need to be considered;
• understand the implications of the proposed terms;
• ensure your intentions are recorded clearly; and
• address potential areas of uncertainty before they become a source of disagreement.

Although discussing finances can sometimes feel uncomfortable, particularly when a relationship is going well, having clear conversations and documenting what has been agreed can provide greater clarity.

Speak To Our Family Law Team About Relationship Agreements

Our experienced Family Law team advises clients on relationship agreements and other financial matters arising within relationships, marriages and separations.

Whether you are planning to live together, preparing to marry, or already married, we can explain the available options and provide advice based on your individual circumstances.

A Pre-Marital Agreement, sometimes also known as a pre-nup, is entered into before marriage.

It records how a couple intends certain financial matters to be dealt with if their marriage later ends.

A Pre-Marital Agreement may be relevant where one or both parties have assets they acquired before the marriage, own a business, have received or expect to receive an inheritance, or have children or financial commitments from a previous relationship.

Post-Marital Agreements

A Post-Marital Agreement, sometimes also known as a post-nup, is made after a couple has married.

It can be considered where financial circumstances have changed since the marriage, where a couple did not put a Pre-Marital Agreement in place beforehand, or where they want greater clarity about their financial arrangements going forward.

What Can A Relationship Agreement Cover?

The contents of a relationship agreement will depend on the circumstances of the couple involved.

Matters that may need to be considered include:

• property owned before the relationship or marriage;
• jointly owned property;
• savings and investments;
• inherited assets;
• business interests;
• financial contributions made by each person; and
• how particular assets should be treated if the relationship ends.

The purpose is not simply to protect one person’s assets. A well-considered agreement can provide greater clarity for both parties by establishing their intentions and expectations from the outset.

Are Relationship Agreements Legally Binding?

The legal position depends on the type of relationship agreement involved.

A properly prepared Cohabitation Agreement can provide an important record of the arrangements agreed between an unmarried couple.

If you would like to discuss a Cohabitation, Pre-Marital or Post-Marital Agreement, please contact the EJ Moyle LLP Family Law team on 01903 784447 or 01903 725143.

You can also by complete our online enquiry form at https://moyle.co.uk/contact/