Cohabitation Agreements

More and more people are choosing to live together before getting married or just live together indefinitely without marriage. When these relationships end, similar issues arise as in a divorce: How will the property be divided? Who will pay the mortgage and take the house? How will the debt be divided?

Cohabitating Couples are at Risk When Their Relationships Dissolve

For married couples, statutes define their rights and obligations upon their divorce or break-up. The law determines what is separate property and what is marital property. The court can decide how the debt is allocated. Cohabitating couples are not protected by any specific law or statute.

Unmarried Couples Can Create Contracts to Define their Rights and Obligations

A couple can enter into a contract or agreement that can offer protection and guidance if their relationship should dissolve.

A cohabitation agreement can and should:

• define how property that is purchased or acquired during the relationship should be divided
• define how property that is received by gift or inheritance should be allocated
• define how property brought into the relationship should be treated
• define how expenses will be paid during the relationship
• define how debts will be distributed if the relationship should end
• define how any disputes should be resolved, such as through meditation or arbitration.