Living Together in the 2020s: Why more Gen Z’s are Saying 'Yes' to Cohabitation Agreements

Gen Z, also known as ‘Zoomers’, consists of people born between 1996 and 2010. Born in the late 1990s, I am therefore considered a ‘geriatric’ Gen Z and sometimes feel I can relate to Millennials more in certain respects. But when it comes to the idea of entering into a cohabitation agreement, my views align more closely with those of Gen Z, though that may also be because I am a family lawyer who favours certainty and pragmatism. 

In a recent survey carried out by Charles Russell Speechlys (involving 4,000 adults, 2,000 of whom were Gen Z), it was found that, despite the perception that Gen Z are less keen on tradition, they do prioritise marriage, love and protecting their own wealth and assets. Interestingly, though perhaps not surprisingly, nearly half (47%) of Gen Z surveyed were open to signing a cohabitation agreement before moving in or buying a property with a partner. This is significantly higher than those older than Gen Z (23%). 

The Office for National Statistics report on families and households in the UK released in May 2024 indicated that cohabitants accounted for almost one-fifth (18%) of couples living together in the UK. It is the fastest growing form of family living arrangement in the UK. 

Rights of Cohabitants 

Many unmarried couples believe that ‘common law marriage’ exists and assume that at least some of the legal rights available to spouses and civil partners apply to cohabitants too. The 2019 British Social Attitudes Survey indicates that almost half (46%) of the total population of England and Wales assume (incorrectly) that cohabitants can form a ‘common law marriage’. The percentage was higher in households with children (55%). The prevalence of the ‘common law marriage myth’ is worrying, as many cohabitants are not aware that, upon separation or the death of a partner, the legal consequences differ significantly to those who are married or are civil partners.   

Married couples and civil partners are entitled to make financial claims against each other upon separation and divorce. On the other hand, cohabitants are left to rely on a mix of principles of the law of trusts, contract and property. They are not entitled to spousal maintenance from their former partner, and do not have any automatic rights to property owned solely by their former partner. In the latter case, the party with no legal ownership would have to rely on the Trusts of Land and Appointment of Trustees Act 1996 to try to demonstrate they had a beneficial interest in the property. Pursuing this through the courts is often a cumbersome and expensive process, with no guarantee of success. If the cohabitating couple has children under the age of 18, claims can be made for child maintenance and a parent may be able to seek capital provision for housing the child by applying under Schedule 1 of the Children Act 1989. However, any remedies sought through ‘Schedule 1 proceedings’ would only provide temporary relief until the child reaches the age of 18 or finishes tertiary education (and capital provision for housing would not be outright). 

In October 2023, Shadow Attorney General Emily Thornberry announced at the Labour Party Conference that a Labour government would reform the law for cohabiting couples. However, to the dismay of many family lawyers, the King’s Speech on 17 July 2024 did not include any mention of a Cohabitation Bill or reform to the existing law (or lack of law) on cohabitation.

What is a Cohabitation Agreement?

It is possible for cohabitating couples to enter into a cohabitation agreement, which is a binding contract, to provide stronger protections for each party in the event of a separation. Such an agreement can set out arrangements for property ownership, financial provision and support for children (if applicable) both during the cohabitation and upon separation or death. Couples can make an agreement at any time, though it is common for the agreement to be agreed and executed before the couple move in together, or if there are certain triggering events such as buying a property or having a child.

Both parties to a cohabitation agreement should take independent legal advice on the document. Depending on what type of financial arrangements are covered within the agreement, a certain level of financial disclosure may also be required. 

Cohabitation agreements are not the same as pre- or post-nuptial agreements (for couples who are due to marry or are already married) but the rationale for them is similar – the parties want as much certainty and clarity as possible. Nuptial agreements are also on the rise, particularly amongst the younger generation. To date, the uptake of cohabitation agreements has not been as high as nuptial agreements but, given the results from the survey, it is likely that, going forward, an increasing number of cohabitating couples are likely to enter into such agreements.