Moving in with a significant other is a big step. Maybe not quite as big as a marriage contract, but it can feel very close to that. Cohabiting means sharing Pennsylvania expenses, living space, and a number of material things. Having a clear plan when going into that situation can make it easier for everyone to adjust. Having a written plan also makes it easier to split assets and debits should the couple break up.
Understanding cohabitation agreements
A cohabitation agreement is a contract. It outlines the rights and responsibilities of the two parties. A cohabitation agreement may contain information about what each partner will contribute to the household financially. It will clarify who owns what, and how much of it they own. There are different forms of shared ownership for real estate, for example.
Cohabitation agreements may also outline what happens if the couple breaks up. In this way, they are somewhat comparable to prenuptial agreements. Many of these types of agreements also contain an element of estate planning. It’s prudent for any adult couple to think about what will happen should someone die or become incapacitated. Even though this may be a rare thing in young people, it can and does happen. Having a plan for that eventuality can avoid many, many problems in the long run.
If you are moving in with your boyfriend or girlfriend, consider a cohabitation agreement. Just figuring out what will go into one can be a good indicator of areas in your relationship that need to be discussed. Making a plan before moving in together can help ensure that everyone is on the same page about the relationship, its structure and where it may be going in the long run.