What Can Be Included in a Cohabitation Agreement?

More and more couples are choosing to live together without marrying. While this reflects changing social attitudes, many people may not realise their legal position. Unlike married couples or civil partners, cohabitants do not have the same automatic rights when it comes to property, finances, or inheritance.

A cohabitation agreement can provide clarity and security in these situations. It allows partners to set out in writing how they wish to manage their financial affairs both while living together and if the relationship comes to an end. For many couples, it offers peace of mind and a clear plan for the future.

What is a cohabitation agreement?

Cohabitation agreements are a relatively recent feature of Irish family law. For a long time, the law offered no real protection to couples who lived together without marrying. This often meant that if a relationship ended, one partner could be left with no legal claim to the home they had shared or to financial support, even if they had contributed significantly during the relationship.

That position changed with the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010. This Act introduced a legal framework for cohabitants, including the right to apply for certain financial orders if the relationship breaks down, and the ability to make a written agreement setting out their own financial arrangements. These agreements are now commonly referred to as cohabitation agreements.

A cohabitation agreement is a contract between partners who live together but are not married or in a civil partnership. It allows them to decide in advance how property, income and expenses will be managed while they are together, and how assets or financial responsibilities should be dealt with if they separate.

To be valid, the agreement must be in writing and signed by both partners. Each person must either take independent legal advice or receive joint advice and confirm in writing that they are waiving their right to separate advice. While the courts will generally uphold these agreements, the law does allow a judge to set one aside in very exceptional circumstances if enforcing it would lead to serious injustice.

Who might need a cohabitation agreement?

A cohabitation agreement can be helpful for a wide range of couples, not only those with significant wealth. It provides certainty, helps avoid disputes, and ensures both partners know where they stand.

You may find an agreement particularly useful if:

• You are buying a property together and want to record contributions to the deposit, mortgage payments and what should happen to the home if you separate.
• One partner has greater assets or income and wishes to protect their financial position.
• One partner has existing debts, and you want to agree on how these will be managed without affecting the other.
• You are raising a child from a previous relationship and want to safeguard those responsibilities.
• You simply want to be clear about “what is mine, what is yours, and what is ours.”

In each of these situations, a cohabitation agreement provides reassurance and safety for the future.

What can you include in a cohabitation agreement?

The agreement can be tailored to suit the needs of each couple. The law allows partners to decide how their finances will be managed during the relationship and what should happen if it ends. While every agreement is unique, the following areas are commonly covered:

• Property and the home – who owns what share of the property, how mortgage or rent payments will be made, and what happens if the home is sold or one partner moves out.
• Household expenses – how everyday bills, utilities, groceries and other running costs will be divided.
• Bank accounts and savings – whether you will keep separate accounts, open a joint account, or use a mixture of both, and how savings will be treated.
• Debts and liabilities – setting out responsibility for any loans or debts, and whether one partner will indemnify the other.
• On separation – what arrangements will apply if the relationship ends, such as how assets are divided or whether any financial support will be provided.
• Pensions and insurance – agreements about naming each other as beneficiaries, or maintaining life cover to provide security.
• Wills and inheritance – promises to make or update wills in line with the agreement, to ensure financial wishes are respected.
• Opting out of the redress scheme – if both partners agree, the contract can state that neither will apply to the court for financial orders under the legislation.

Including these details helps reduce uncertainty and ensures that both partners understand their rights and responsibilities. It is a flexible tool that can be adapted to the circumstances of any couple.

What you can’t do with a cohabitation agreement

Although a cohabitation agreement is a powerful tool, there are limits to what it can cover. The law places certain matters outside the scope of a private contract between partners.

You cannot use an agreement to:

• Decide arrangements for children – issues such as custody, access and child maintenance are always decided by the court based on the best interests of the child.
• Make a pension adjustment order – only a court can make or approve such an order, even if both partners agree in writing.
• Avoid court intervention entirely – while agreements are generally upheld, a court can set one aside in very rare cases if enforcing it would cause serious injustice.

Understanding these limits is important. A cohabitation agreement can bring certainty in many financial areas, but it does not replace the protections that the law provides for children or the oversight of the courts where fairness is at stake.

Practical tips

When preparing a cohabitation agreement, it is important that both partners take independent legal advice. This ensures that each person understands the terms and reduces the risk of the agreement being challenged later. Full disclosure of assets, income and debts should also be made at the outset, as transparency is key to fairness.

It is sensible to review the agreement if circumstances change, for example after buying a new home, having children or experiencing a significant change in finances. Wills, insurance policies and pension nominations should be kept consistent with the agreement so that all financial arrangements work together smoothly.

Require assistance with drafting a cohabitation agreement?

If you are considering a cohabitation agreement, it is important to take professional advice so that your interests are fully protected. At McCarthy + Co Solicitors LLP, our family law team has extensive experience in drafting clear and practical agreements that reflect each couple’s unique circumstances. Arrange a consultation with a solicitor by completing our quick and confidential online form.