You should use a cohabitation contract if you and your partner know that you are going to live together for a long time, but you do not want to get married. An agreement allows you to both confirm whether the property is identified as a separate (or common) property for legal purposes and to prepare both partners to think about how future assets and/or incomes could be distributed in the future. At the end of the agreement, assets acquired after the agreement is concluded are sold and the proceeds of the net sale are distributed equitably between the two parties. All common debts must be agreed with the lender in order to be repaid in equal parts. Other properties and separate incomes remain with the owner. Each partner remains responsible for their personal debts. The Civil Partnership Act 2010 allows couples who have been in intimate relationship for 5 years or more or 2 years, or 2 years if they have a dependent child, to require a contract to care for the other partner or financial assistance from their estate. Subsequently, recognizing the growing tendency of people to live together, the Family-Child Law Committee is committed to setting a precedent to help practitioners prepare and advise their clients in common housing if they opt for a cohabitation contract. The Family-Child Law Committee has set a precedent on cohabitation. Without a cohabitation agreement, you may be forced to take care of your partner`s debts if you separate. This means that you could be at the bank not only for rental and incidental expenses, but also for household and personal property. This agreement can also help ensure that all assets you acquired prior to the relationship remain in your possession when the relationship ends.
If the two people who live together are in a relationship and intend to marry or establish a life partnership, they should also consider a pre-marriage agreement. A cohabitation contract applies to unmarried persons as long as they live together, but only a marriage contract can affect the situation between two persons who have entered into a registered marriage or partnership. Both parties are required to seek independent legal advice prior to the conclusion of this agreement. It is also necessary for both parties to enter into this agreement freely and voluntarily and for you to provide full relevant financial information in order to avoid future allegations of inappropriate influence. Always give everything in your possession or for which you are responsible. Otherwise, many states will not abide by this agreement. Even in cohabitation agreements, it generally cannot enter into future agreements on the children of marriage. As a reminder, each party should seek independent legal assistance before implementing this agreement, as you may waive the rights to which you are entitled in the context of a common law marriage. The form below is only for illustration. You and your lawyer can use this example as a guide to developing a cohabitation agreement that best protects your interests and respects the laws in which you live.
Couples who live together and combine their finances can often save money, share health benefits and celebrate a wonderful kinship.