Overview of Cohabitation Agreements
A cohabitation agreement is a legally binding contract between two people who intend to live together, in the absence of marriage. Cohabiting couples may enter a cohabitation agreement for anticipatory purposes, that is, before they combine their lives as committed partners, or they may enter into a cohabitation agreement after they have lived together for many years. A cohabitation agreement does not need to be drafted when the relationship is on the rocks, but may serve as a valuable tool at any point, for any of the parties involved, whether parties plan to break up or remain together. Like a prenuptial agreement, a cohabitation agreement provides legal protection for each party. In this case, a cohabitation agreement legally protects both parties in the event that the relationship goes sour, or if one party dies.
There are many legal issues that can arise when one chooses to cohabitate with a partner, and this is especially true if the couple has children, or owns property, or if one of the partners has significant assets. Although a cohabitation agreement can protect the rights of all parties involved, it cannot compensate for the lack of a marriage certificate and what that means under the law. For example, one spouse is generally responsible for the other spouse’s debts, but this is not the case in the event that the parties are not married. If Jen is 40 years old and still paying off her student loans from college, Chris will have to pay his own debt, yet Jen will be expected to take care of his loans, even if the loans include those for his brand-new pickup truck and his new boat . The logic here is that these days if a person hasn’t been married in the eyes of the state for 20 some years, the couple has already proven that their union is either beneficial to both parties, or harmful to one.
People often associate cohabitation with modern Americans who prefer a more casual union. Unlike a prenuptial agreement, the primary reason for creating a cohabitation agreement is not to address the pros and cons of married life, but the pros and cons of remaining unmarried and living together while under the laws of marriage. Cohabitation agreements address personal property, property acquired during the time of the cohabitation, personal income, debts and liabilities, alimony-like payments in the event of deaths while one partner is still alive, debts and liabilities, and the less important but nevertheless crucial section on how to divide the property if the relationship ends. Cohabitation agreements can also address personal preferences, such as religion, childrearing practices, maintenance of household, and family functions involving gatherings of parents, siblings, and others. Many cohabitating couples adopt family or individual pets, and a cohabitation agreement can determine how these pets are cared for in the event of death or separation.
If the couple eventually marries and, subsequently, separates or files for divorce, and has not updated the cohabitation agreement, the agreement will continue to function as a prenuptial agreement. Cohabitation agreements are recognized in the court system, but the parties must demonstrate they are viewing the relationship in a constructive, civil manner. One of the most important considerations when drafting a cohabitation agreement is detailed documentation and when the agreement is made.
Components of a Cohabitation Agreement
The contents of a cohabitation agreement depend on the individual circumstances of the parties. The following are some common elements included:
Property Division
Even though unmarried couples may not have the same property division rights as married couples, a cohabitation agreement can address issues such as:
• Joint ownership of property
• How title will be held
• How property will be divided if the relationship terminates
• What happens when one party dies
• How joint expenses and individual expenses will be paid
• Whether any property will be categorized as separate property, such as premarital property or gifts
• Whether the property/premises will be rented or owned
• Whether the amount a cohabitant contributes to the mortgage/rent will be compensated in the event of separation
Financial Arrangements
Think about how you would like to handle common financial issues in your agreement, such as:
• Joint accounts vs. separate accounts
• Separate bank accounts for each person to pay their own bills
• Joint bills for rent/mortgage, groceries, utilities, etc.
• Contribution of the parties to the household in order to maintain a certain standard
• Payment of credit cards
• Disposing of debts in the event of separation free of liability by another
• Withdrawals from savings accounts
• Who will make day-to-day purchases?
Dispute Resolution
The agreement can address alternate means to resolve disputes, such as mediation or arbitration.
Additionally, it’s generally a good idea for any cohabitation agreement to set forth in what format revisions must be made to the agreement in order to be valid. Cohabitation agreements must adhere to all the same legal requirements of contracts, including the statute of frauds, which generally require contracts whose performance cannot be completed within a year to be in writing. That means that if the parties wish to change anything in the agreement, it must be in writing and signed by both parties in order to be enforceable.
Also think about when your agreement will be terminated, such as the death of a party, marriage, or new children.
Preparing Your Cohabitation Agreement PDF
Crafting a Cohabitation Agreement PDF is a nuanced process that should ideally be undertaken with careful legal guidance. The goal of a Cohabitation Agreement is to define the financial relationship of the parties and to provide some measure of protection if that relationship comes to an end.
When you sit down to draft this type of agreement, the first element is to make sure you have a comprehensive understanding of the financial aspects of your relationship, including each party’s assets and liabilities. You will need to include both what is pre-existing at the time of the agreement and what may come about in the future.
Once you have reviewed both parties’ financials, work closely with your attorney to focus on the specific language of the document. As you are creating the Cohabitation Agreement PDF, it is important to go through each of its terms together. Having all terms in writing helps to keep everything clear. Make sure there is no ambiguity in the document—the main goal of this exercise is that you and your partner will be clear about your roles and responsibilities during your time together.
Cohabitation agreements are unique to each couple, so don’t expect to find a pre-formatted template that you can simply fill out. Instead, rely on your attorney to craft an agreement that handles all of your concerns regarding your financial and legal relationship with your partner. Your attorney will be able to refer to existing templates for cohabitation agreements to make sure that your form covers all relevant bases while remaining tailored to your specific situation.
Legal Factors and State-By-State Differences
It is crucial to consider the legal aspects that apply to cohabitation agreements, as the laws are not uniform throughout the United States or the world. Differing rules around common-law marriage, property division, custody, and support can significantly impact the content and enforceability of a cohabitation agreement.
In some states, like Alaska and Vermont, common-law marriages are recognized, which means that even if a cohabitation agreement is in place, the couple may be subject to the same financial obligations as a married couple if they were to separate or divorce. Other states have unique equitable distribution laws that outline how marital assets are divided upon separation. If a couple has certain assets before their relationship, those may not be counted as jointly owned. This could affect the contents of the cohabitation agreement, as assets may need to be clearly defined as separate or mutually owned. Some other states’ approaches to property division are community property, apportionment, or equitable division. For instance, married people in Texas can own communities and separately property . Community estate includes any property created during the marriage, while separately property may be anything owned before the marriage or received thereafter as a gift. Again, different strategies may be applied to the rights of unmarried individuals in that jurisdiction.
Different jurisdictions also have different child and spousal support guidelines. For example, child support is often calculated by multiplying the parents’ income by a statutory formula but unequal computations are used elsewhere. Similarly, when a cohabiting couple breaks up, courts will determine child support based on state law and the circumstances of the couple’s lives. In some jurisdictions, alimony statutes may apply to long-term cohabitation if the parties can demonstrate a relationship similar to marriage.
Finally, other governing considerations that couples should check were discussed above, such as Intellectual property rights, created and existing property rights laws, general restraint laws, and laws concerning the validity of pre-marital agreements containing waivers of spousal support.
Templates and Tools for PDF Cohabitation Agreements
For those who are looking to draft a cohabitation agreement, there are several websites available online that have templates. One such template can be found on the website for LegalZoom which has a very basic template to start with that is in PDF format. You can download the PDF, fill it out, and then print it.
Another template can be found on the website for FindLaw that is considered more of a contract than an actual agreement. A contract is simply the act of agreeing to do something and that is all that it is in this case as informal and non-legally binding as it may be. Once again, you can download the PDF, fill it out and print it.
One more example of a simple cohabitation PDF agreement that is free to use can be found on the website for eForms. You can purchase the full form without an account or account can be set up for free to save the document after it has been filled out. In most cases, you simply have to add information on the names of the individuals involved, what date the agreement will take effect, if anything will be paid for or not, and where a signature will go. You can create a legally binding agreement when you add these details to any of these templates.
Modifying and Adding to the Agreement
Section 5: Updating and Amending the Agreement
As with any legal contract, life changes may create the need to review and update your cohabitation agreement. Some common circumstances may include: The cohabitating couple starts (or stops) living together or even begins to contemplate marriage; The couple considers or embarks on having children, or actually gives birth to them; one or both of the partners receive’s a lucrative job at some point in the future; one or both of the partners inherits money or property or receives a substantial gift.
Updating your agreement after a major life change is essential. The process for making necessary changes is simple. You can opt to either revise the original agreement as a new document or write up an amendment. An amendment is a short document that outlines any new details that need to be added to, or modified in, the current contract.
There are no mandatory requirements as to how amendments should be worded , but it is usually advisable to add: The date of the amendment; The complete names of both partners as listed in the original agreement; An explanation of exactly what you are changing in the agreement; A statement that nothing else in the agreement is being changed in the amendment; The signatures of both partners; and, The signatures of any witnesses.
Even if your lives remain unchanged after your cohabitation agreement has been used, it will not be void. It remains in full force and effect for the entire time that you live together. Unless you have explicitly stated otherwise in writing in the contract, however, it will not apply if you ever divorce.
When updating and revising your cohabitation agreement, it is very important to be honest and thorough about all life events that have taken place thus far. Outlining each significant issue will ensure that you and your partner are both protected if you ever separate.