The problem facing many samesex couples contemplating living together is discussing what will happen should their partnership fail at a time of great optimism and blossoming love. The idea of asking two people in love to consider their relationship ending just as it is beginning is one of the most unromantic notions you could have. In fact discussing such matters may even cause a little tension in the relationship.

But let’s be realistic. In our society today 63% of all same sex domestic partnerships will end within 5 years. Arguments about money are a common cause of relationship breakdown.

It is a sure sign of the strength and determination of a couple that they can discuss the practical and unromantic aspects of their relationship, openly and honestly. Discussing such matters with your partner is a positive step in the relationship because it helps to minimise the possibility of finances being the cause of a breakdown.

WHAT IS A COHABITATION AGREEMENT?

A Cohabitation Agreement is a contract between people who are living together but who are not married. It is essentially a ‘prenuptial agreement’ between people who are not married. It is designed to deal with property issues if the parties separate.

WHY SHOULD I CONSIDER A COHABITATION AGREEMENT?

One reason might be where you both have significant assets and want to define how these assets are dealt with in the event of a relationship breakdown.

You may have considerably more assets than your partner and you want to make sure these assets are retained by you or other family members such as children.

A cohabitation agreement can lessen the turmoil that usually follows a relationship breakdown by spelling out the rights and obligations of partners and eliminating the burden of uncertainty.

You may be concerned about the other parties debts.

WHEN CAN I USE A COHABITATION AGREEMENT? Whenever you and your partner live together, or plan on living together, you can enter into a Cohabitation Agreement. You can enter into this agreement before you live together, while you are living together or at any time before you separate. These agreements can be used by anyone who chooses to use them.

HOW DO I MAKE A COHABITATION AGREEMENT? You need to make your Cohabitation Agreement clear and easy to understand. This means you want to put it into writing. Your agreement needs to cover all the potentialities, including what you will do with gifts, living expenses, the death of either party and many other situations. Remember, a Cohabitation Agreement is a plan for a future eventuality. It is intended to serve as a safety net, preventing a problem further down the road.

WHAT SHOULD I INCLUDE IN THE COHABITATION AGREEMENT? These de facto relationship agreements are intended to deal with the subsequent division of property in the event of a separation. Because of this, it is important that both parties disclose what property they own, have rights in or otherwise possess. These properties need to be written down and made clear to the other party. In addition to property (cash, real estate, shares, etc.), each person needs to indicate what debts or obligation they have as well. Essentially, each person needs to disclose their financial status, including all assets and debts. Once each party determines what they own or owe, they can determine who gets what in the event of a separation.

WHAT ABOUT ITEMS WE BUY TOGETHER?
Cohabitation Agreements can also deal with property acquired after the cohabitation begins. Whether you decide to keep it as joint property, to assign the property to one person or divide it in any other manner, the point of Cohabitation Agreements is to make it clear to each person what the status of the property is. If a separation occurs, each person will know what belongs to them and what belongs to the other person.

An inability to negotiate the financial issues, which will rise during cohabitation, is a major cause of short relationships. Are you ready for to commit to a relationship if you are uncomfortable with discussing financial issues before you commit to the long-term?

Couples living together deserve the security of a mutually agreed contract in writing, for their own protection. No matter your reasons for entering into the agreement, you can draft a domestic relationship contract to cover almost any situation. Whether your property concerns are simple or complicated, making sure both you and your partner understand what will happen if you ever split-up is a wise strategy. Cohabitation agreements protect both partners and the relationship. It is piece of mind on a piece of paper.