Marriage is a legal contract between two individuals. There are rights and responsibilities which each party is required to fulfill in order to remain married to each other.
Two individuals who are not married are still able to create a contract to live together. Living together contracts are commonly referred to as:
- Cohabitation agreements;
- Non-marital contracts; or
- Living together contracts.
The terms of these contracts may be similar to those contained in a prenuptial agreement. Among other things, these contracts also include property and how debt will be handled if the relationship fails.
The majority of couples do not make these types of agreements with each other and end up paying for it in the long run. If a couple is considering living together without getting married, it may be beneficial to consider creating a living together agreement.
How to Decide if You Need a Living Together Agreement?
Not every relationship will necessarily require a living together agreement. However, it will be more useful for a long term relationship if certain things are expected to accumulate, including:
- A large portion of money;
- Property; and
- Debt.
In order to make the best decision individuals can based on their circumstances, there are certain issues that the individuals can consider if they are contemplating entering into a living together agreement, including:
- Age and maturity of the couple involved: This means if the couple is older, they may want make sure that the property is kept per their final wishes;
- Couples that do not believe in the institution of marriage: These couples should consider drafting a living together agreement to generally define:
- the relationship rights;
- the relationship obligations; and
- how property is to be distributed in the event of a separation or death; and
- Any other issues the individuals believe should be included.
Living together contracts can be detailed and cover every aspect of the relationship, if desired. Creating a simple, functional, and comprehensible document that uses common English language is more practical that a formal document containing terms such as “heretofore” and “pursuant.”
Individuals can create multiple agreements if they need to. It is important, however, to avoid illegal and frivolous agreements in order to ensure that a court will enforce the agreement in the future.
What is the General Content of These Contracts?
There are essential terms and provisions which need to be included for any contract to be valid and enforceable. Living together contracts also have certain provisions or clauses which may be useful to include.
Property and finance clauses may help the individuals highlight their financial priorities as well as to keep a record of the property which is owned during the relationship. Generally, the living together agreement should cover all of the individual’s property, including the property they had before they entered into the relationship as well as the property either or both parties accumulate during the relationship.
If both parties are transparent and sort out issues earlier, especially financial issues, it may be helpful in the future of the relationship. The individuals can also include any property which is inherited or received as a gift during the relationship.
There are many individuals who will desire to keep property separate which they inherit or receive as a gift. Other individuals will want to consider all property as shared. Both viewpoints are reasonable and acceptable.
Because of this, it is important for the parties to determine what works best in their relationship and for their circumstances. A consistent approach will be easier to follow through and implement by both individuals.
Property can be a complex issue, especially if there is a misunderstanding between the parties or they do not address the problem. It is important for the parties to be transparent in the beginning and to share their expectations in order to have a smoother understanding of what the relationship will look like.
Are there Other Important Provisions that Should be Included?
Yes, other important provisions that should be included in living together agreements include how to handle expenses and separation or death clauses. The agreement should contain provisions regarding how the individuals want to handle the daily expenses and any other expenses during their relationship.
For example, the individuals may include how they will divide the costs of day-to-day expenses, especially if they may increase or decrease, including:
- Groceries;
- Utilities;
- Laundry;
- Housing; and
- Other expenses.
In many situations, couples share a checking account. In these cases, the individuals can both deposit their paychecks into the account and pay all of the bills from it.
It may be easier for the individuals to split the payments if they share a bank account. Some couples, however, may wish to structure their finances differently.
Every couple can create their own financial system and write down the expenses for record keeping purposes. This method may allow each individual to contribute to the income and expenses and not feel as though they are being taken advantage of.
Provisions or clauses governing financial management are important to ensure that less tension will arise in the future. In addition, having income clauses may benefit the couple because they make a financial plan for their life together.
Because this type of relationship is not a traditional marriage union, developing an agreement regarding finances will be helpful for both individuals. Another important clause in a living together contract is a separation or death clause, which will provide instructions regarding what will occur in the event of the death of a party or the separation of the parties.
These provisions may include information regarding how the finances will be handled and who will be responsible for the debt as well as other issues. The agreement can be as simple as to state that if the couple separates, each party has the right to take immediate possession of their separate property and that all of the property which is jointly owned will be divided equally.
Specifying a method for dividing the property that is jointly owned will be helpful for the parties, as not all separations are amicable. Although it may be difficult to consider this issue at the beginning of the relationship, it is important to consider what will occur if one party passes away.
Without certain prepared documents, the individuals in a relationship who are not married will not have the right to claim property from one another. A living together agreement can be used to specify how one of the parties wants to provide for the other.
Considering a written will may also be beneficial. It is important for both parties to make plans for the future, especially if they do not intend to get married.
Another important issue is to provide a method for resolving any disagreements that later arise. Some disagreements may result in the parties being required to go to court.
The living together contract, however, can provide for alternative dispute resolution methods, such as mediation. The individuals can provide in their contract that their disagreements will be resolved by a third party who will help facilitate an agreement.
If medication is not successful, the parties may allow either partner to submit the dispute to formal and binding arbitration if necessary. A living together contract will only be enforceable after the parties marry if it was created at the time the parties planned to get married as prenuptial agreements must be created in contemplation of marriage.
When Should I Hire a Lawyer?
Creating a living together agreement may be time consuming and often requires the assistance of a contract attorney who can facilitate the process of creating an agreement that is in favor of both you and your partner. Your attorney can also ensure that the agreement is in accordance with the laws of your state governing these types of agreements.
Including certain clauses and provisions can help you and your partner navigate life as an unmarried couple and avoid frivolous litigation in the future.
