Cohabitation Prenuptial Agreement: What You Need to Know
Cohabitation is becoming a more popular alternative to marriage, especially among millennials. However, without proper legal protection, cohabiting couples could be putting themselves at risk financially. That`s where a cohabitation prenuptial agreement comes in.
What is a Cohabitation Prenuptial Agreement?
A cohabitation prenuptial agreement, also known as a cohabitation agreement, is a legal document that outlines the financial and property rights of a cohabiting couple in the event of a separation or the death of one partner. It`s similar to a traditional prenuptial agreement but is designed specifically for couples who are not married.
Why is a Cohabitation Prenuptial Agreement Important?
Without a cohabitation prenuptial agreement in place, cohabiting couples could face significant financial implications in the case of a separation or death. For example, without a cohabitation agreement, one partner could end up with a greater financial burden than they expected, or one partner`s family could be excluded from inheriting anything from the other partner.
What Does a Cohabitation Prenuptial Agreement Cover?
A cohabitation prenuptial agreement can cover a range of financial and property arrangements, such as:
1. Financial Support: Who will pay for what expenses, including rent, utilities, groceries, and other household costs?
2. Property Ownership: How will property purchased jointly be divided if the couple separates? If one partner owned the property before the cohabitation, how will ownership be divided, if at all?
3. Inheritance: What will happen to the property if one partner dies? Will their family be entitled to anything?
4. Asset Division: How will assets acquired during the cohabitation be divided in the event of separation?
5. Debt: Who will be responsible for debts incurred during the cohabitation?
How to Create a Cohabitation Prenuptial Agreement
Creating a cohabitation prenuptial agreement involves these steps:
1. Decide what you want to include in the agreement.
2. Hire a lawyer who specializes in family law to help you draft the agreement.
3. Each partner should have a separate lawyer review the agreement before signing.
4. Sign the document and have it notarized.
5. Keep the agreement in a safe place.
In Conclusion
A cohabitation prenuptial agreement is an essential legal document for cohabiting couples who wish to protect themselves financially and property-wise. Without it, cohabiting couples could face significant financial and legal implications if the relationship ends or one partner dies. Therefore, it is crucial to consult with an experienced family lawyer and create a cohabitation agreement that reflects the couple`s needs and circumstances.