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- What Should Be Included In A Cohabitation Agreement?
- Save Money on Legal Costs if You Separate
- Signing a Cohabitation Agreement With Your Partner
Some couples think a cohabitation agreement is only necessary if they get married. But this couldn’t be further from the truth.
Some couples are delighted with the arrangement, only wanting to make any changes in the event of a breakup. If this is the case for you, no worries!
If you plan for a future beyond your breakup, a cohabitation agreement could be what you’re looking for. We’re going into detail below about why a cohabitation agreement should be part of any couple’s future planning. Keep reading to learn more!
What Should Be Included In A Cohabitation Agreement?
A cohabitation agreement can make decisions about the day-to-day living arrangement, such as who will do the household chores. The agreement can also be customized to fit the couple’s needs and can be modified as the relationship changes.
Here are some things to keep in mind that should be included in your cohabitation agreement options:
1. Property and Finance Clauses
When two people choose to live together without getting married, they may create a cohabitation agreement. These clauses can help to avoid disputes and misunderstandings about who owns what and who is responsible for what financial debts or obligations.
This document can address various financial and property-related issues. These issues include how to handle joint bank accounts and what will happen to the home if the couple breaks up. Couples can avoid potential conflict and confusion down the road by creating a cohabitation agreement.
2. Property Owned Before Living Together
One key issue that must be addressed in a cohabitation agreement is whether any property owned by either partner before the agreement was signed will remain their separate property or become joint property. This way, there is no confusion about who owns what if you split up.
By specifying what property each person owns, you can avoid arguments and legal battles down the road. Suppose you and your partner are considering signing a cohabitation agreement. In that case, consulting with an experienced attorney is essential to ensure your rights and interests are protected.
3. Property Inherited or Received by Gift During the Relationship
If you and your partner are living together and you inherit property or receive a gift during the relationship, you may consider creating a cohabitation agreement. This living agreement can help establish each person’s ownership rights in the property and prevent any disputes should the relationship end.
Without such an agreement, any property inherited or received as a gift during the relationship would not be considered joint property and would be subject to division upon separation. If the relationship ends, the person who inherited or received the property will keep it.
4. Property Bought During the Relationship
When two people purchase property together during their relationship, it is vital to protect both parties if the relationship ends. A cohabitation agreement can do this by specifying how the property will be divided between the two parties.
This can help to prevent conflict and ensure that both parties are treated fairly. Without such an agreement, one party may end up with the property, and the other party may be left without anything. A cohabitation agreement can help to protect both parties and their investment in the property.
These agreements can cover a wide range of topics, including expenses. Expenses can be a contentious issue in cohabitation agreements. This is significant if one person contributes more financially to the household than the other.
To avoid conflict later, it is essential to be clear about who will be responsible for the expenses in the agreement. Ultimately, the goal is to have a fair and equitable agreement that works for both parties.
6. Separation or Death
The document can outline what will happen to their belongings if one partner dies. The agreement can specify what will happen to their property and whether the surviving partner will have any financial obligations. It can also include provisions for survivors’ benefits.
Without such an agreement, state laws may determine how these matters are handled. This may not align with the couple’s wishes. A cohabitation agreement can provide peace of mind and protect both partners should their relationship end.
7. Dispute Resolution
Dispute resolution provisions in a cohabitation agreement can help couples avoid costly and time-consuming litigation. Arbitration and mediation are alternative dispute resolution methods that can be used to resolve cohabitation disputes. For example, the couple can agree to use mediation to resolve any disagreements before going to court.
If mediation is not successful, then they can agree to binding arbitration. Arbitration is like a mini-trial where both sides present evidence, and a neutral arbitrator makes a decision. These methods can be less expensive and quicker than going to court.
Save Money on Legal Costs if You Separate
If you and your partner are separating, one way to save on legal costs is to draw up a cohabitation agreement. This document can spell out how you will divide up your property and debts and any child custody and support arrangements. While a cohabitation agreement is not legally binding, it can help avoid potential disputes and costly litigation.
To be sure your agreement is enforceable, have it reviewed by a lawyer before signing. Visit angrov law to find out more about the steps to Alberta cohabitation agreement.
Signing a Cohabitation Agreement With Your Partner
Cohabitation agreements are not just for couples who are unmarried. There are many benefits to having a cohabitation agreement, even if you are married. Cohabitation agreements lay out each person’s financial rights and obligations during the relationship, which can help to prevent arguments and disagreements about money.
A cohabitation agreement can protect your assets, income, and property. If you are considering cohabiting with your partner, draft a cohabitation agreement to protect yourself.
You can have a strong foundation for your relationship now. Check out more of our other blog posts to learn more today.