The Benefits of a Cohabitation Agreement for Unmarried Couples
In an ever-changing society, it is becoming more and more common for couples to engage in a long-term relationship without planning for marriage in their future. This may be for many different reasons, whether personal objections, financial implications of marriage, religion, or many other situations. Though some may not want to get married to define their partnership, they may still share a life together as if they were in a marriage. This may mean shared use or ownership of assets, like property, or intertwining finances.
Because of how connected their two lives may become, some couples choose to create a cohabitation agreement. A cohabitation agreement is a legal contract between two parties outlining the responsibilities of their relationship. This can help define the financial aspects of your relationship and help you plan what would happen if your relationship ever came to an end.
Who Should Get a Cohabitation Agreement?
Many couples who plan to share a life without being married should consider entering into a cohabitation agreement. This may be especially helpful for unmarried couples with a large income gap or couples that share children. With a large income gap, unmarried couples may want to plan for a future where they separate—where finances are no longer mostly shared—but also want to ensure that each person has enough money to keep their lifestyle. A cohabitation agreement can help define this before or in case of a split and make it easier to divide finances.
Though cohabitation agreements do not allow for the defining of custody arrangements, they can allow for the division of finances, including those intended for the children in this relationship. If the couple has established a 529 account for their child or children, the cohabitation agreement can outline how much each person should be dedicating to such account, including in the event of a split.
Another aspect a cohabitation agreement can help plan for is pet custody. Though they are not custody agreements, cohabitation agreements can include what happens to pets in the event of separation because pets are considered property in the eyes of the law. This can apply to pets acquired before the relationship or during the relationship and allows for you and your partner to come up with a jointly approved plan for your pets in the event you split.
How We Can Help
Cohabitation agreements are very important because they can help define a couple’s financial relationships as well as protect them under the eyes of the law. Long-term couples that choose to abstain from marriage while maintaining a shared life may want to consider filing a cohabitation agreement to bind their responsibilities in their relationship under the law. This isn’t planning for the worst, or if the relationship will end, but instead, a cohabitation agreement provides peace of mind in ensuring both parties understand their rights as well as their obligations and feel secure in how their life would look if the relationship was to change.
At Kornitzer Family Law, our attorney, Robert Kornitzer, is an experienced matrimonial attorney who has represented people in many nuanced cases. At our firm, we help individuals and families work through these decisions with clear, practical guidance. Located in Paramus, New Jersey, we serve clients through Bergen and Passaic Counties, and across New Jersey. We’re here to support you as you consider your options. If you think you’re ready to take the next step, call us today.
