Moving in together
Cohabitation
Becoming cohabitants marks the beginning of a new chapter. When two addresses become one, it is important to be aware that cohabitation is not legally regulated in the same way as marriage. Therefore, you should establish a cohabitation agreement when you move in together, so that you have full control over who owns what. Without a cohabitation agreement, the end of a relationship can lead to an uncertain financial situation for both parties.
Cohabitation Agreement: Create a Cohabitation Contract
All cohabitants should have a cohabitation agreement – regardless of whether you rent or own together.
A cohabitation agreement describes how you should arrange finances between you, and how you can achieve a fair settlement should you separate. The cohabitation agreement thereby ensures a fair distribution in the event of a break-up.
It is wise to draw up an agreement early in the relationship, when it is easy to do so amicably.
In a cohabitation agreement, it is important to include elements such as the division of residential and other property, how value appreciation and improvements such as renovations are handled, and what happens to valuable items, inheritance and furnishings.
Tips for the cohabitation agreement
- Update the agreement regularly as you make new financial investments, especially when purchasing a new home or other significant assets.
- Create and sign at least three copies of the agreement. For extra security, keep one of the copies with a third party.
- If you do not have children together and wish to provide benefits to your partner in the event of death, you should prepare a will in addition to the cohabitation agreement.
In partnership with Ally Advokater, DNB can offer programme customers assistance in setting up cohabitation agreements, wills and other relevant contracts.
Cohabitation or marriage?
There is not much that separates being married from being cohabitants, but there are some quite significant legal and financial differences.
When you are married, everything you and your partner have accumulated during the marriage is usually shared, known as joint property. This includes assets, money and other wealth that has been acquired whilst you were married. For example, the value of a home purchased during the marriage will usually be part of what is divided in the event of a separation.
If you are only cohabitants, the rules are slightly different. In that case, you are two independent financial individuals. The assets you bring into the relationship and the assets you acquire during cohabitation, you can take with you out. In other words, the money you save and spend is yours. This means that in the event of a break-up between you and your partner, it is important to have an agreement in place to ensure that both parties are financially protected.
An example of this is if one person in the relationship pays for everyday things such as food, clothes and gifts, whilst the other is responsible for larger investments in property, you risk that only one person is left with actual assets after a break-up, if you do not have a cohabitation agreement.
It is important to be aware of these differences, and sometimes it can be sensible to obtain DNB Legal advisory services to understand what applies in your specific situation.
Joint finances
Many couples live in different worlds when it comes to money and spending. Put an end to that. Instead, set up joint accounts for shared expenses and savings.
Joint current account
Joint savings
How to divide your shared finances
If you have different incomes, what you spend and save together should be proportional to each person's income. This provides a fairer distribution and enables both of you to have money left over each month for personal use, savings or investments.
One way to do this is to base it on what you receive each month. Then add both incomes together and work out what percentage each of your incomes represents of the total sum. This percentage can be used when calculating how much each person should pay towards shared expenses and savings.
Division of ownership interest when buying a home
When cohabitants buy a home together, their financial situations often vary. The ownership share each person invests depends on available equity and ability to pay.
For cohabitants considering buying a home together, different levels of equity are a common scenario. There are several ways to handle this:
- The choice of different ownership interests in the property should reflect an equal share of debt. Avoid the trap of paying half the loan when the equity does not correspond to the registered ownership share. A good tip is to include the ownership distribution in the cohabitation agreement.
- Create a private loan between the parties, secured by a charge on the property. This requires a formal loan agreement and should be included in the cohabitation agreement. Establish interest rates and amounts in advance for either ongoing repayment or upon any sale or separation.
- An alternative some choose is to own equal shares, but agree that the one with greater equity must have their deposit covered before the surplus is distributed upon a sale.
- In addition to the cohabitation agreement, it is crucial to draw up a will. The cohabitation agreement only applies during life, whilst the will regulates matters upon death. According to the law, only cohabitants who have or are expecting a child together have inheritance rights.
Are you unsure how much you can borrow for a home purchase? Test your borrowing capacity to get an overview of what you can borrow. For an exact assessment of the loan amount, we recommend applying for a pre-qualification letter.
When one partner owns the property and the other moves in
If you are planning to move in together, but only one of you owns the property and has a mortgage, it is advisable for the other party to gradually buy into the property. This ensures a fair distribution of any increase in the property's value, whilst the ownership share is officially registered.
If your partner does not have the finances to buy in, this can be resolved by contributing rent equivalent to half of the mortgage interest, in addition to covering costs for food and electricity.
A cohabitation agreement provides clarity regarding ownership in the event of a potential separation, and regulates the distribution of jointly saved funds between you. As a programme customer at DNB, you can get help to Create a cohabitation agreement.
Buying a home together with a friend
Buying a home together with a friend can be a good solution for those struggling with high property prices. However, it is important to be aware of a number of things before taking this step. This is what you should consider when you share a home with a friend.
Have a clear exit strategy
The most important thing when you co-own with a friend or family member is to have a clear plan for what happens if one of you wishes to move out. It is common for life situations to change, such as wanting to move in with a partner or experiencing changes in employment. A written agreement that regulates expenses, income from sale and deadlines for notifying a move is important. It can also be useful to have agreed how one party can buy out the other if the situation changes.
Sharing expenses
The simplest approach is to split the home loan and share all expenses. In principle, you will then each have your own finances. It is not a given that both parties will receive the same loan or have the same amount in equity. If you need to have different shares of the loan, it is important that the ownership share – and therefore also expenses related to, for example, loan repayments and any income from sale – follows the share you pay in.
Clarify in advance
Being a co-owner of a property can lead to unexpected costs or unforeseen situations. It is crucial to clarify how you will allocate costs related to damage, renovation or unexpected expenses. Also discuss what happens if one of you loses your job, becomes ill or is unable to cover your expenses.
Consider owning versus renting
Owning a home is not always the best solution. It is important to consider how long you plan to live there, as well as other factors before deciding to buy instead of rent.
Children and cohabitation
When it comes to children and cohabitation, it is important to be aware of certain legal aspects.
It is the parents who have the primary responsibility for supporting their own children.
It is possible to include agreements on child custody and contact arrangements with shared children in a cohabitation agreement. However, please be aware that this is not legally binding in the event of a separation, as a separate assessment of the children's best interests must be made based on the situation at that time if you choose to separate.
Cohabitants with shared children have certain inheritance rights from each other. They also have the option to retain the shared home without having to distribute the inheritance immediately.
Inheritance as a cohabitant
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Joint children
Cohabitants have fewer inheritance rights than spouses. To secure inheritance rights, it may be necessary to create a will.
In cases where two cohabitants have joint children, the child will have the right to inherit their share of the estate. The surviving cohabitant has inheritance rights limited to up to four times the National Insurance basic amount (4 G), and may choose between inheriting this sum or continuing undivided ownership of the joint home. It is important to choose one of these alternatives. Beyond this, the cohabitant will not inherit anything, unless there is a written will that changes the distribution.
G is the National Insurance basic amount and is adjusted annually.
1 G = 136,549 as of May 1, 2026.
Without joint children
Cohabitants have fewer inheritance rights than married couples. To secure inheritance rights, it may be necessary to create a will.
If the deceased cohabitant has children from previous relationships, each individual child will inherit their share of the estate, whilst the remaining inheritance will go to other family members. The cohabitant will not inherit anything unless there is a written will that changes the distribution of the estate.