Creating a Cohabitation Agreement: Essential Advice and Templates
What is a Cohabitation Agreement?
When couples who are not married choose to live together, they may decide to enter into a living together contract. These agreements are also referred to as premarital agreements, cohabitation agreements, or marriage contracts, and serve to protect each person’s rights, property, and financial interests. A living together contract truly defines the nature of the relationship for legal purposes, and can be useful in a number of circumstances.
For example, a contract can detail the rights and responsibilities of each partner if the relationship should end. Domestic disputes are a common cause of litigation, and can result in expensive court intervention. When a couple has a legal agreement that outlines what is expected of each person, there is often no reason for going to court. A living together contract can also include requirements regarding children. More states have passed laws that strip non-married parents of parental rights over biological children . Those individuals who are raising children in a cohabitating relationship can use a contract to ensure that their rights and interests are protected.
Legal issues can also arise when one partner owns all property, but the other has contributed to the upkeep of that property. Those who need legal protection for property investments may also want to consider entering into a cohabitation contract. For example, suppose a couple purchases a home together, but when they separate only one partner is legally entitled to the house. A living together contract that names specific conditions for the sale or buyout of the other person’s share can prevent disputes and a lengthy court battle.
As more and more couples choose not to marry, it is critical for those individuals to understand their legal rights. A living together contract is an excellent way to protect those rights, as well as property investments, financial interests, and children.