A cohabitation agreement allows cohabitants to decide how to divide their shared accommodation and household goods upon separation. This agreement can be drawn up either before or during the cohabitation relationship.
The Meaning of a Cohabitation Agreement
A cohabitation agreement is a legally binding contract between two cohabitants. It specifies what will be shared and how it will be divided upon separation or the death of one cohabitant. Without such an agreement, all property acquired for joint use during the cohabitation period will be divided equally, regardless of who purchased the items or paid more for the property.
A cohabitation agreement can only regulate the division of the home and household goods bought for joint use. Items purchased before cohabitation, possessions not related to the home (such as a car), and money in a bank account are excluded from the division.
Other Considerations
In the event of separation or property division, only property related to the home is divided equally. It is important to note that both cohabitants are considered joint owners of any shared car and holders of any joint bank accounts. Only the person who owns the car is entitled to it, and only the account holder is entitled to the money in the event of separation or property division.
Cohabitants who wish to inherit from each other should also consider making a will, as cohabitants do not automatically inherit from each other as spouses do. A cohabitation agreement cannot replace a will. For more information about wills, click HERE.
We can assist you
At Advantage law firm, we are experienced in handling all types of family law matters. Contact us for assistance with cohabitation agreements. If you need a cohabitation agreement, we can draft one for you.
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