Love and Law: Understanding Cohabitation Agreements
Family team |05 December 2023
Buddy and Holly were settling into their new home well; their home was filled with couple (s)elfies and Buddy didn’t object to the garish Christmas prints filling their home. It wasn’t long after they moved in that Holly approached Buddy about protecting their individual assets.
Buddy, ever the optimist, believed everything would work out perfectly. "If things ever go sideways," he cheerfully said, "we'll just split everything down the middle." Holly, though equally optimistic the relationship would never break down, decided to do some research. She discovered something that could ensure their future would remain secure: a cohabitation agreement.
A cohabitation agreement, she learned, allows for a bespoke set of written rules as to how their respective finances will be dealt with. This could help them both if they were to spilt up. Holly’s research suggested that it may have been a good idea to do this before they moved in together, or when they were buying their home, so she didn’t want to waste any time in trying to get a cohabitation agreement in place as soon as possible.
The agreement would clearly state who owned what before they moved in together, whether any assets should be treated differently to others and how they would deal with any assets that they purchased jointly. It would offer financial clarity; they could outline how they’d manage their daily expenses. It was a practical means of helping them to avoid misunderstandings about money.
Property arrangements were crucial, especially since they had bought a house. The agreement would spell out what would happen to their home if they ever decided to go their separate ways.
Holly knew that she would be with Buddy forever but wanted to make sure that, if this was to ever change, they could avoid a lengthy and costly legal dispute. The agreement would act as their guide, aiming to prevent arguments and ensuring everything remained fair. It would also offer security and peace of mind – the agreement could change as their lives did. As the agreement is not a Court Order, but a document that the Court may choose to consider if there ever was a dispute, this allows for the document to be updated as and when their lives change.
Holly shared this with Buddy, who realised that a cohabitation agreement didn’t mean that they weren’t planning on being together forever. Instead, it offered them a smart way to protect their understanding about their assets, owned individually and jointly and try and avoid any tension if they ever separated.
Our Family team are happy to discuss your options for safeguarding your future with your partner while protecting your assets. You can get in touch with them here.
