Cohabitation Agreements
With U.S. divorce rates at their lowest point in decades, the moral acceptability of divorce is surging to an all time high. At 73%, statistics are showing that divorce has gained steady momentum across all demographics, even the majority of people who consider themselves “very religious”.
This gradual shift in moral acceptance of divorce signifies a change in our societal view of marriage. Marriage, an institution that was once the standard for building a life together has become a formality that a growing number of people choose not to pursue.
In it’s place, many people are instead choosing to cohabitate. The lack of a legally recognized relationship has not hindered millions of couples across the U.S. from buying homes, having children, and growing old together. Cohabitating couples are building lives together, going on vacations together, buying dogs together, and having children together just like married couples. And yes, cohabitating couples sometimes break up, just like married couples.
When a relationship that is not legally recognized comes to an end, the discuss of “who gets what” can become murky. In terms of entitlement, division of assets is not necessarily as clear cut as it would be in a divorce.
With this in mind, many couples are choosing to have Cohabitation Agreements prepared. These legal contracts, much like Prenuptial Agreements, are designed to document which assets and debts should go to each party, should the cohabitation break down. A Cohabitation Agreement provides an unmarried couple some of the same legal benefits extended to married couples.
While Cohabitation Agreements are smart for nearly everyone cohabitating with a romantic partner, there are some instances where the stakes of not having one are even higher:
- business owners
- those intending to cohabitate long term
- those with substantial amounts of money
- those with children
- those with significant debt
- those with shared real estate
- those who gave up a career to raise children
- those with retirement accounts
While staying out of the judicial system altogether can be tempting, more and more couples are finding that having some legal protection with a Cohabitation Agreement is the best way to get the best of both worlds.
