Whether you’re planning to move in with your significant other or you’ve been living together for years, you may have heard the legal term “cohabitation agreement” and wondered if this option applies to your situation. While living together implies a sense of permanence to any relationship, a cohabitation agreement, like a prenup, can help protect your personal and financial interests in the future.
To help you decide if a cohabitation agreement is right for you and your partner, here are the answers to some commonly asked questions:
What is a Cohabitation Agreement?
A cohabitation agreement is a contract between two individuals living in the same household who are romantically involved. As with any legally binding contract, a cohabitation agreement must be drafted correctly to ensure it includes considerations between the two individuals. This can include shared property, such as the purchase of a car, condo, or vacation home. According to Law.com, a “consideration must be of value (at least to the parties), and is exchanged for the performance or promise of performance by the other party (such performance itself is consideration.”
Is a Cohabitation Agreement Right for My Partner and Me?
A cohabitation agreement is the most responsible choice when moving in with a romantic partner. It’s essentially just a way of covering your bases. Whether you and your partner choose to remain financially independent from one another (e.g. separate bank accounts, no shared income, separate cars, split rent, and utilities), there is still much to consider in the event of a break up, especially if you have shared interests. A cohabitation agreement will help protect you, should you both decide to part ways in the future.
Contact a Minneapolis Attorney Near You
Coming to a mutual agreement that involves finances and assets requires 100% participation from both parties. No one can be forced into a cohabitation agreement, so it’s essential that you speak with your partner to discuss the benefits of such an agreement and whether this decision is right for each of you. Like a prenup, a cohabitation agreement is a positive way to stay honest with your goals and clearly communicate your concerns, so you both are on the same page.
For questions regarding cohabitation agreements, contact us at KTF Law Firm, and let us help you through the process!