Cohabitation Agreements

Prenups can be beneficial in cases where one or both of the individuals in a marriage own a business, when the couple owns substantial assets, or when there is a wide disparity in income or pre-marriage wealth. While prenups have traditionally been used by married couples, many non-married couples today are also turning to prenup-like agreements to help protect their individual assets.

Cohabitation without marriage brings many of the same legal worries when it comes to the possibility of the relationship ending as does marriage, and a legally binding document describing what will happen in the event of a breakup can be just as helpful. Cohabitation agreements are legal documents unmarried couples can sign that will protect each person’s assets, address child custody issues, and determine support obligations. For example, a cohabitation agreement can help a non-married couple divvy up a jointly owned home and its mortgage payments in the event of a break up.

For more on cohabitation agreements, see Luke Landes, Prenuptial Agreements for Cohabitants, Forbes, Mar. 30, 2012.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.