You may be in a long-term, committed, domestic relationship with someone but choose not to get married. For whatever reason, marriage may not be right for you, or at least, it may not be right for you now.
If this is the case, you are not alone. According to Kiplinger, between 2007 and 2016, there was a 29% increase in the number of couples who chose cohabitation. Kiplinger goes on to explain what a cohabitation agreement is and how you could benefit from one.
What is a cohabitation agreement?
When you live with someone else in a domestic partnership, your lives necessarily become more intertwined with one another. A cohabitation agreement explains what is to happen to the property that each of you brought to the relationship, as well as the property that you acquire together, in the event that the relationship comes to an end, whether because of a breakup or the death of either you or your partner.
How is a cohabitation agreement different from a prenuptial agreement?
A prenuptial agreement is a way for people to organize their finances prior to their marriage. It does not take effect until a legal marriage takes place. A cohabitation agreement does something similar but takes place between people who do not intend to marry. Your cohabitation agreement is less complex than a prenuptial agreement would be.
It is to your advantage to create a cohabitation agreement early in your relationship before your life becomes intertwined with that of your partner. However, you and your partner can enter into a cohabitation agreement at any time during your relationship.