Taking The Leap - What You Need To Know Before Cohabitating With Your Partner

3rd May 2024

Moving in with a partner is a huge milestone - and can mark one of the most exciting times in your life. But there are also many factors to consider when cohabitating and taking this next step, whether it's bills, legal implications, or overall housing decisions.

To make the process a little smoother, Legal & General explains what to do when you decide to cohabitate with your significant other.

If your partner owns a house

For some, transitioning to a partner's house may be the next step. In this case, it's important you are aware of your rights - and what you're entitled to in the chance it doesn't work out.

Cohabiting refers to couples that live together but aren't married or in a civil partnership. It's a common misconception that long-term cohabiting partners are in what's known as a ‘common-law marriage.'

The reality is, if you aren’t married and are simply cohabitating, you don’t automatically have the right to live in the home. However, if you have had a ‘beneficial interest’ in the property - for example, you may have contributed towards the mortgage - then theoretically you could force the owner to sell the property or claim proceeds from its sale.

Before moving in - or having someone move into your property - make sure you are clear on these implications.

What to do when someone moves in with you

Discuss cost splitting: Decide how shared expenses will be divided, considering income discrepancies.

Consider a joint bank account: Simplify shared expense management but ensure mutual financial responsibility.

Update home insurance: Inform your insurer about the change in occupancy to adjust premiums.

Consolidate expenses: Cancel unnecessary payments and streamline bills now that you're living together.

Life insurance: Assess if coverage is needed to protect against potential financial burdens in case of death, especially concerning mortgage payments.

Declare a partner is moving in: When a partner moves in with you, there are several situations where you might need to notify relevant authorities. For instance, informing your local council about the change ensures accurate Council Tax payments.

For more information, please visit: https://www.legalandgeneral.com/insurance/life-insurance/family/what-to-do-when-your-partner-moves-in/e

Lack of Legal Protection
One of the biggest disadvantages of cohabitation is the lack of legal protection for unmarried couples. Unlike married couples, cohabiting couples do not have the same legal rights, such as the right to inherit a partner’s assets, access to a partner’s pension, or the right to make medical decisions on behalf of a partner.

Financial Disputes
While cohabiting can save money, it can also lead to financial disputes. Couples who cohabit may find it difficult to separate their finances, leading to disagreements about money.

Cohabiting couples legal rights
Although cohabiting couples do not have the same legal rights as married couples, they do have some legal protection. The term "common law marriage" is often used to describe the legal status of cohabiting couples, but it is important to note that this is not a recognised legal status in the UK.

However, cohabiting couples do have some legal rights, such as the right to make financial claims against each other in certain circumstances, the right to seek child maintenance, and the right to make a claim for a share of the property they have lived in together.