Cohabitation Agreements
Many couples in Bucks County are deciding to live together rather than get married. It makes sense to test the relationship at the next level before making a bigger commitment and getting married. However, when you live together certain financial arrangements should be very clear. If you have a lease or one person owns the property you should seriously consider a cohabitation agreement.
The term “cohabitation” generally refers to a romantic couple living together under similar conditions and with similar expectations as a married couple without being legally married. Many couples live together without the intention of marriage, but it’s also becoming common for engaged couples to live together and delay the wedding until some future date. These couples often make major purchases together, have children, and get pets. Because of these shared assets and responsibilities, they need to lay legal foundations regarding financial burdens, support of children, and division of assets in the event of the dissolution of their relationship.
Why do you need a cohabitation agreement?
It can be difficult to bring up the subject of a cohabitation agreement, just as it can be difficult to bring up the subject of a prenuptial agreement. But because the arrangement of cohabitation is less stable in nature than marriage, such an agreement is even more critical. Couples living together do not have the shared property rights under the law that married couples do, nor do they have legal responsibilities such as alimony or spousal support that married couples do.
For instance, if a couple has a shared bank account, one partner can take all the money and run, and the other can’t do anything about it. One partner may take on a mortgage or car loan in his or her name, with the verbal agreement that they will both pay for it, but the other partner can walk away from the relationship and pay nothing.
What is covered in a cohabitation agreement?
The purpose of a cohabitation agreement is to confer upon the couple some of the protections and responsibilities under the law that married individuals have if their marriage ends in divorce. It can also include responsibilities while they are cohabiting.
A cohabitation agreement can address a variety of topics:
- Assets and liabilities (loans, etc.) brought into the relationship
- Assets and liabilities acquired jointly or individually while cohabiting
- Financial responsibilities while cohabiting
- Distribution of assets and liabilities if the relationship dissolves
- Financial responsibilities for children or partner if the relationship dissolves
- Method for updating the agreement or resolving disputes, such as mediation or arbitration
What about Common Law Marriage?
Common law marriage was a legal framework that assumed that after a couple had been together for a period of years, their status conferred upon them some shared property rights and responsibilities. This was abolished by case law in 2003 and by statute in 2005. Therefore, couples who have lived together since before this time without a cohabitation agreement may be recognized in courts as having a common law marriage, but if your cohabitation began after this time, you will not have any legal protections.
What about a do-it-yourself cohabitation agreement?
We do not recommend that you download an agreement from the internet. There are too many legal and financial details that could be missed and each state has different laws. For instance, there are many ways to title property that can impact an individual’s rights to the property. When you make a significant purchase in one person’s name, parties responsible for payment must be clearly defined. And issues of partner or child support must follow strict legal frameworks. For this reason, we encourage you to find an experienced lawyer to help you properly structure your cohabitation agreement.
At the Law Office of Elissa C. Goldberg in Doylestown, PA, we specialize in all aspects of family and collaborative law. Our associates can help you craft a cohabitation agreement that will protect your legal rights and provide you with confidence and stability.