The number of cohabiting adults in the US has grown substantially, reaching 20.3 million in 2024. According to the Pew Research Center, 93% of cohabiting adults are either the household head or the unmarried partner of the head.
Moving in with your partner is a significant step in any relationship. While it brings excitement and new beginnings, it’s also wise to consider the practical aspects of sharing a home. One way to ensure clarity and protect both partners is by creating a cohabitation agreement.
Cohabitation agreement attorney Stephane Quinn says cohabitation agreements are well suited for couples who share money and property but who don’t want to get married. Such agreements will allow them to establish how matters related to property purchased together, inheritances, personal assets, etc. will be handled in the event of a breakup.
Let us look at the reasons why you might want to consider this agreement.
Defining Property Ownership and Rights
The cohabitation partnership agreement must clearly state ownership and rights to avoid future disputes. Express who owns what: real estate, chattels, or common property. State how property bought during cohabitation will be treated and how it will be dealt with upon dissolution.
It is worth reflecting on joint purchases, which shall wipe out any ambiguity about the division of such things as assets, debts, and liabilities when the relationship terminates.
Asset division lawyers from Bundy Law say in some states, like Oklahoma, each spouse is allowed to keep separate property, which typically includes assets they owned prior to the marriage as well as gifts and inheritance given specifically to them.
It’s best to understand the laws in your state when drafting the cohabitation partnership agreement so each person knows their rights and duties.
Clarifying Financial Responsibilities
Addressing money matters should be the first priority to ensure that the remaining issues can be resolved smoothly together. Sit down together and discuss how you’ll manage your finances. Decide who’ll cover which bills, whether it’s rent, utilities, or groceries. Be specific about amounts and due dates to avoid misunderstandings later.
Address any shared banks and expenses, and how much each party will contribute. Besides, consider saving targets and long-term financial plans.
Transparency fosters trust and ensures agreement on the following matters. Defining such responsibilities clearly will prevent disputes and make for a more conducive living situation.
Open discussions about finances create stable ground for your life together.
Establishing Guidelines for Shared Expenses
Establish clear rules for incurred expenses to avoid any disputes and cultivate a spirit of cooperation within your coexistence.
List those items you’ll share, such as rent, utilities, groceries, and other household expenses. Discuss fee-sharing methods: whether equal or by income, depending on what feels fair to the group.
Set payment dates so bills will always be paid on time; this way, late fees and worries just won’t exist. Make time for updates to your joint budget as changes arise in income or lifestyle.
Consider establishing a plan to address unexpected expenses, such as repair costs, that encourages shared responsibility.
Planning for Potential Breakups
Breakup discussions, albeit awkward, form an essential part of cohabitation. It can become the ground for amicable separation should the need arise.
The cohabitation terms typically address the division of common assets, who takes over the debts, and possibly living arrangements. Such an arrangement prevents confusion and emotional problems later on.
Such provisions may include items, cash contributions, or joint purchases. Any vague expectations clear off the prejudice of any single party and preserve the integrity of the relationship.
Protecting Children and Parenting Arrangements
Children’s safety is more important, so parenting arrangements must be clear. Cohabitation agreements define each parent’s custody, visiting, and financial responsibilities. Defining parental duties reduces confusion and conflict.
Make sure to discuss how you will handle such things as education and health care decisions in which both parents will have a say. You must also learn to adjust to any changes in your work or your partner’s work to ensure the kids’ stability.
An agreement will foster a positive co-parenting relationship while focusing on the emotional and physical welfare of the children. All of these clear decisions help secure the family’s future and help the kids grow.
