Non-Married Cohabitation Agreements

More couples are choosing to reside together as non-married partners, however they do not consider what may happen if the relationship dissolves.  Many individuals believe that, because they live together, they have the same rights as married couples.  This is not the case.  In fact, there is little legal protection for non-married couples.  Many unmarried couples purchase real property, open joint financial accounts, and incur joint debt while living together.  If the relationship dissolves, the former couple often end up in lengthy and costly legal disputes to determine how to fairly divide their joint assets and debts. 

Before unmarried couples commit to sharing a home, they should consider making a Non-Married Cohabitation Agreement.  A Non-Married Cohabitation Agreement is an enforceable contract between the non-married couple and protects both parties.  It can be an extremely important tool if the relationship dissolves. 

A Non-Married Cohabitation Agreement sets forth the couples’ wishes regarding how the assets, debts, and personal property accumulated during the relationship will be divided if the couple breaks up.  For example, if the couple purchases a home together, they may agree to sell the house with one party residing in the home until the home is sold.  Or, one person may keep the home and pay the other party a share of the equity in the home.  The Non-Married Cohabitation Agreement can also state that each party keeps whatever he or she brought into the relationship prior to the commencement of their cohabitation.

A Non-Married Cohabitation Agreement may also include terms regarding continued financial support when one partner has financially supported the other partner while the other partner stayed home to care for their children, or attended school.  When an unmarried couple owns a business together, or especially if one partners owns the business and the other “helps,” this Agreement may be crucial to determining each person’s role or financial interest in the business after a break up.  

This saves a lot of emotional anguish when couples are already distressed over the loss of the relationship as well as costly legal fees.

These are just a few examples of how a Non-Married Cohabitation Agreement can protect the interests – and sanity - of unmarried couples.  Please feel free to contact us if you would like to discuss this option further, and how it may benefit you.

Co-Authored with Melissa Barz, writer and paralegal.