Cohabitation Agreement. The Cohabitation Agreement substantially in the form attached as Exhibit D hereto (the "Cohabitation Agreement");
Cohabitation Agreement. The Cohabitation Agreement.
Cohabitation Agreement i. A cohabitation agreement can give you or your partner some protection if your relationship ends with one of your deaths. However, because you are writing the agreement with the understanding that it could be enforced at a break up or at either of your deaths, you will not make the same decisions you would with a will. A cohabitation agreement splits what you have between you and your partner. A will gives you the option of leaving everything you have to your partner if you chose. A will is still the best way to provide for your partner after you die.
Cohabitation Agreement. A cohabitation agreement is similar to a prenuptual agreement. This document can be as detailed as you want it to be. Typically, it spells out how a couple should handle the assets each person brought into the relationship and those acquired afterward. It could also deal with how household expenses will be paid. The document doesn’t have to be limited to issues regarding break-ups. It can also be about how you’ll handle your finances while you’re together. It can spell out: ■ What the expectations of living together are regarding shared household responsibilities and finances. ■ The rules, if you have joint financial accounts. ■ What the joint accounts can be used for. ■ How much you can buy with a joint credit card. Since a cohabitation agreement is recognized in most states, it may ensure one party’s property is left to the other according to whatever arrangement the couple makes. It does not, however, take the place of a will, and will not go through probate. If you want your partner to inherit your assets, consider these steps: ■ Write a will naming your partner as an heir to whatever property you would like him or her to receive. ■ Name your partner as beneficiary on all retirement accounts and life insurance policies that you want to pass to him or her. Check with your insurance agent for details. Remember to change your beneficiary designation documents, including those you had in place before the relationship began. ■ Structure ownership so that property passes to your partner. A “joint tenants with right of survivorship” ownership arrangement will accomplish this goal. ■ Establish a trust to pass property to your partner in a tax-efficient way. Spouses who are U.S. citizens can transfer assets to each other free from federal estate and gift taxes, but unmarried partners cannot. Consult a tax advisor or estate planner to help you make the most tax-efficient choices.
