In some ways, such a couple may be treated like a married couple, such as when applying for a mortgage or working out child support. However, in some other areas, such as property rights, pensions and inheritance, they are treated differently.
A cohabitation agreement contains documentation for a couple who want to live together, in order to protect themselves from unnecessary cost and litigation should their cohabitation break down. They can regulate clearly their property rights and what arrangements might be made for mutual financial support, dealing with debts, looking after children, etc.
The agreement allows the individuals concerned to determine in advance who will keep specific assets and what will happen to assets that have been purchased jointly if they separate. This agreement is intended to bind both parties.
Advantages:
A cohabitation contract helps clarify financial commitments. Working out who pays what and how responsibilities are shared in running the home will strengthen your success for a harmonious home life.
Disadvantages and limitations:
Thinking about and talking through all the issues that should be covered – including death, divorce and illness – involves often long, hard work. But talking about the terms of a contract could be looked on as a massive plus to a relationship, showing it is mature enough to work through major decisions.
**A cohabitation agreement will usually not be adequate to settle all legal issues that might arise, so a trust deed setting out property rights and a will are also additionally recommended.
You may request additional information from McNamee Mediations regarding Cohabitation Agreements mediation by filling out the form below.