Many couples now don’t feel the need to marry and they instead continue to raise families and get a mortgage happy in their decision. There are also people living together, as friends or housemates, who want to protect their rights. However, many are getting savvier about protecting their rights when they sign on the dotted house agreement line.

In both scenarios, an agreement can set out how finances will be shared, what happens if one of them becomes ill, dies or “opts out” of the relationship. The agreements for the finances can include how the rent, mortgage or bills are paid, what would happen to joint bank accounts or pensions, deal with assets owned or bought while living together, arrangements for children (normal or fur babies) and next of kin rights.

In order to have an agreement drawn up, parties will need a list of their finances including any debts, assets and anything else they would like the agreement to cover. The parties will also need relevant documents to support the list such as proof of assets, tenancy agreements or title deeds, proof of earnings and bank statements and birth certificates of any children.

Once the agreement has been drafted, there are some steps to make sure the agreement is valid and these are:
• Both parties need to enter into it freely and voluntarily;
• The agreement needs to be in the form of a Deed;
• Each person needs to sign it;
• It must be updated following any major life changes (e.g. birth of a child, purchase of a home).

During the process, each party should seek independent legal advice to ensure they understand the terms and are happy with the agreement.

If the relationship does break down or change, at least the person can concentrate on fixing their broken heart safe in the knowledge the finances are sorted.

If this is something you think could benefit you and your partner, please telephone our office to make a fixed fee initial meeting with us.