Living Together? 5 Subjects to Address in a Cohabitation Agreement
Do you plan to move in with your significant other and form a family? More and more Americans choose this route today, eschewing marriage for a while or even forever. And while cohabitating can have many benefits, it carries more risk for both parties. Why? Without the legal protections inherent in a marriage, many things are left unaddressed in case of an emergency or if something goes wrong.
One way to address the legal gaps of a couple who chooses not to get married is to draft a cohabitation agreement. What subjects might you and your partner handle in such an agreement? Discover a few of the most common and the most important issues to put in writing.
1. Division of Property
Married couples automatically become subject to state laws regarding how property for the benefit of the household is divided if they break up. If a divorcing Oregon couple fails to make their own agreement, for instance, they can count on state laws that seek an equitable division of assets between the two.
However, cohabitating couples have no asset or debt division protections if they break up. Each party will generally walk away with what's in their own names, regardless of the length of their time together or how each contributed. A cohabitation agreement, like a prenuptial agreement, allows you to decide for yourselves how to divide your assets and debts.
2. Co-Parenting Children
Many couples hope to start a family of their own while others find themselves unexpectedly becoming parents. And while both biological or adoptive parents have legal parental rights, your goal should always be to co-parent harmoniously for the benefit of the children, no matter what happens in your relationship. The best way to do this is to agree in advance on some of the basic ground rules you will abide by.
3. Powers of Attorney
Who will make decisions for you if you become incapacitated? Who will pay your bills and ensure you receive adequate health care? For most people in a committed relationship, the ideal person is their partner. However, unmarried partners may have no automatic legal rights to do either in the case of an emergency.
To authorize them to take care of you if you can't do so yourself, you will each need to sign legal documents naming them. The most common of these are powers of attorney, which can be permanent or temporary, and which should be included when making legal agreements with your partner.
4. Family Finances
Money is one of the most common reasons for arguments between couples. How can you avoid this tendency? Consider the value of putting down in writing how you will both contribute to the household finances.
This segment of your agreement doesn't need to be comprehensive, but you may want to address subjects like how much each will pay for shared housing and costs, whether you will use joint or separate accounts, who will pay for irregular expenses, and whether any assets will have joint ownership.
5. Post-Breakup Support
Finally, will either spouse need or want support if you break up? Because you aren't subject to divorce laws, you will need to agree on financial support between yourselves. You can stipulate terms for any support, such as a time length or dollar amount, or you may specify that neither is entitled to it.
Could your relationship be better with a cohabitation agreement? This document can protect you, your partner, and any children, no matter what the future holds. Start by learning more about these documents. Oregon residents can call on Rise Law Group for help. We will work with you and your partner to draft a document that meets everyone's needs and interests. Call today.