Sometimes, a new partner may cohabit with you before you have reached a financial settlement during your divorce.

Therefore, you may be cohabiting with a new partner and have concerns over whether this new relationship will affect your financial settlement.

This article will explain whether a new partner living with you will directly affect your financial settlement and why we highly recommend you enter a cohabitation agreement.

What would the family courts perceive as a new partner?

Many separated partners will have entered into new relationships during the divorce process. However, these relationships will be at different stages, for example, you might be dating somebody, but they still reside at their own property.

Perhaps you intend to cohabit in the future, and you are concerned about how this will affect your divorce settlement as it is still proceeding.

Cohabitation is when your partner moves in with you, but you are not married or in a civil partnership with that new partner.

As in the case of Kimber v Kimber, the family courts will strongly consider this new living arrangement and whether it directly and materially affects a financial settlement.

Therefore, if you live with a new partner within the same household, this is generally considered cohabiting.

Will cohabiting with my new partner affect my divorce settlement?

As with all matters relating to family law, your details will have to be reviewed on an individual case basis, and the facts need to be carefully assessed.

No family's situation is ever the same, this means that general rules can not be applied. Everyone's financial situation is different, for example.

For example, regarding cohabitation, your new partner may still own their own property and occasionally reside there.

However, the divorce lawyer will be interested in the duration and stability of the new relationship.

What we mean by this is how long you have been in this new relationship and whether it has lasted for some time. Your divorce lawyers will the examine carefully your Form E.

Form E is the financial disclosure part of your divorce, your divorce lawyers will look to see if this new relationship has a material effect on the divorce settlement.

The family courts and your appointed divorce lawyers will want to know the financial contributions a new partner may make to the mortgage and the monthly household bills.

If the new partner is paying some or all of the mortgage, this could materially affect the divorce settlement.

For example, circumstances could change where you no longer work, and your new partner may well be financially supporting you. Therefore, this situation will need to be examined by the qualified family lawyers.

The Form E

When completing Form E and offering full and frank disclosure, it might be tempting to conceal the fact that you are in a new relationship.

However, as with all clients, we urge you to be as forthcoming and honest as possible about every aspect of your finances when completing Form E.

This is because your former partner might actively challenge the divorce settlement later on if it becomes apparent that a new partner is financially supporting you.
For example, you may claim that you are struggling financially at the moment, but it may come to light that you might have enjoyed a series of lavish holidays and perhaps a luxury lifestyle with a new partner for some time.

Therefore, you don't want to be dragged back into divorce proceedings at a later date because you have yet to mention your new living arrangements and financial support received to date.

Therefore, be forthcoming with your finances and fully detail your current financial situation.

One size does not fit all

When a partner goes through a divorce, the temptation is to read many family law articles to try to piece together the jigsaw puzzle of how one's financial situation could look post-divorce.

However, it is strongly recommended that you consult with an expert divorce lawyer as soon as possible.

Reading articles online might lead to a distorted view of what will happen to your finances, and you might therefore be misinformed. For example, you might read advice on a divorce solicitor's website that does not relate to the jurisdiction of England and Wales.

You should contact a qualified divorce solicitor for expert help and guidance. This help and advice can be offered throughout your divorce, or you may want help and advice at periodic intervals when you need extra guidance.

Last but not least, do strongly consider entering a cohabitation agreement

At this time, you are probably experiencing how stressful and arduous the divorce process can be.
The divorce might even have become acrimonious, with one partner stating they want to retain the property post-divorce. You may feel that such demands are totally unreasonable because, for example, it was a particularly short marriage.

Therefore, you now know first-hand how complex a divorce can be for some couples.

Therefore, if you are in a new relationship or about to ask your new partner to move in with you, we strongly encourage you to form a cohabitation agreement.

This agreement can also be formed when a new partner resides and lives with you.

A cohabitation agreement states what should happen if the relationship breaks down within a legally binding contract that both sides should freely enter into.

The last thing you want is for a new partner to make financial contributions to the mortgage and then make a separate claim on your property, that is if the relationship breaks down at a later date.

Therefore, cohabitation agreements clearly state what both parties should do if the relationship deteriorates and breaks down.
Our family law practice's expert and highly skilled divorce lawyers who can help you navigate the divorce process and form a robust and detailed cohabitation agreement.

Video consultations are available

The good news is that we can consult with you via video link here at Alun Jones family. We can consult with you online at your convenience.

Do consult with the experts in Cardiff. We are a highly knowledgeable team of divorce solicitors who can help with any aspect of divorce. We also pride ourselves on offering a personal and friendly approach so that you feel fully supported throughout your divorce process.