Like signing a Will or Power of Attorney, a cohabitation agreement can help you plan for an unpredictable future.
Cohabitation agreements (or marriage agreements for married couples)
are written contracts signed by couples that govern their relationship while they are living together, or more commonly, address issues that may arise if the relationship comes to an end.
Cohabitation agreements are common for couples with blended families, to ensure that both partner’s assets are protected. They are also common for couples if one partner has a substantial amount of property or debt, and can protect a partner from having to pay spousal support if one partner has significantly more income than the other.
If approached in a positive way, while both partners are on agreeable terms, this tool can provide a roadmap for how the financial aspects of a relationship are dealt with. They can determine which assets and household expenses are shared, which are kept separate, and determine how certain assets and property are divided if the relationship comes to an end – before the stress and pressure of the actual family breakdown.