Cohabitation Agreement to Protect Assets
Living together as a couple without being legally married has become increasingly common in recent years. However, cohabiting couples do not have the same legal protections as married couples, particularly when it comes to the division of assets in case of separation. This is why a cohabitation agreement can be essential in protecting your assets.
What is a Cohabitation Agreement?
A cohabitation agreement is a legal agreement between two people who choose to live together as a couple but are not married. This document outlines the rights and responsibilities of each party in the relationship. It deals with issues such as the division of assets in the event of a break-up, financial contributions, debts, and other related matters.
Why Do You Need a Cohabitation Agreement?
A cohabitation agreement helps to protect your assets in case of separation. If you are living together but not married, you do not have the same legal protections as a married couple. In the absence of a cohabitation agreement, the law will treat your assets as separate property and not as joint property. This means that if you split up, each person will keep their own assets, rather than dividing them between both parties.
A cohabitation agreement can help to clarify financial responsibilities and contributions. This helps to avoid disagreements and confusion in the future. For example, if one partner is paying for the rent or mortgage while the other is paying for utilities, this can be specified in the agreement.
How Do You Create a Cohabitation Agreement?
A cohabitation agreement should be drawn up by a qualified lawyer. It is important to ensure that the agreement is legally binding and enforceable. Both parties should have independent legal advice before signing the agreement.
The agreement should cover financial arrangements, such as property ownership, bank accounts, and debts. It should also specify what will happen to assets in case of a break-up. If you have children, the agreement should also address custody and support arrangements.
Conclusion
A cohabitation agreement is an important legal document that can help to protect your assets and clarify financial responsibilities when living together as a couple. It is important to work with a qualified lawyer to ensure that the agreement is legally binding and enforceable. By taking the time to create a cohabitation agreement, you can avoid confusion and disagreements in the future.