Can A Cohabitation Agreement Strengthen Your Relationship?

Divorce rates in America are the lowest they've been since 1970. Relationship experts suspect that one reason for this trend is that more couples are opting to live together without getting married.

While the trend toward cohabitation appears to have resulted in a lower divorce rate, these relationships are no more stable than traditional marriages. Like marriage, these non-traditional relationships sometimes fail. When that happens, many of the same issues that affect divorce can come into play.

Married couples often sign prenuptial agreements to determine what their responsibilities will be both during the marriage, and if the marriage ends. Similarly, couples who are living together without being married may sign a Cohabitation Agreement.

What is a Cohabitation Agreement?

A cohabitation agreement is a written agreement which governs the rights and obligations of two parties in a relationship, who live together in a shared household. By drafting a cohabitation agreement, unmarried couples can avoid court ordered support payments and division of property.

Writing a cohabitation agreement allows a couple to decide what, if any property and debts will be considered shared. By determining these issues in advance, a cohabitation agreement helps to avoid conflict during the relationship, and upon its break down, with regard to financial obligations, property rights, and support obligations.

Who is it for?

Generally, a cohabitation agreement is used by couples who choose to live together without getting married. These may be couples who have had a previous marriage, and don't wish to risk another divorce; older couples who don't wish to upset children or other family members by remarrying; or couples who simply don't want a traditional marriage.

A cohabitation agreement may also be used by same-sex couples living in a jurisdiction where they are unable to get married.

Why Should I Get One?

No one wants to think that their relationship won't last. Unfortunately, some relationships do break down. Having a cohabitation agreement will make sure that any shared assets are divided according to the wishes of the couple, rather than the court. This will save both parties from undue stress in the event that the relationship does end.

Many people think that requesting a prenuptial agreement reflects pessimism about a proposed marriage. Similarly, asking your partner to sign a cohabitation agreement might be seen as an assumption that the relationship will fail. In fact, just the opposite may be true.

A study by Heather Mahar of Harvard Law School suggests that signing a prenup improves the chances of having a successful marriage. While no similar study has been done for cohabitation agreements, they are similar enough to prenups to suggest that having a cohabitation agreement may strengthen the relationship of an unmarried couple.

Having a cohabitation agreement will not only protect your assets in the event the relationship fails, but it may prevent it from falling apart in the first place. Hardly a harbinger of doom, a cohabitation agreement may be one of the best things an unmarried couple can do to ensure a lasting relationship.