Cohabitation/Property Agreements
By Lorie L. Burch
Law Office of Lorie L. Burch, P.C.
Cohabitation/Property Agreements: What are they and do you need one?
You probably aren’t committing your life to your partner only to think about breaking up at a later date. However, the reality is that some relationships do not work out and for unmarried partners the consequences can be devastating. Even if your relationship stands the test of time, unmarried partners can benefit from having their roles and duties explicitly defined. Unlike married couples, ownership rights and responsibilities for same-sex couples are not inherent when acquiring property and assets, such as homes, bank accounts, retirement accounts, life insurance, etcetera. Many partners, therefore, consider forming “cohabitation” or “property” agreements that are very similar to premarital agreements. Sure, they’re not romantic and certainly not for everyone, but a cohabitation agreement may be a good idea for some partners depending on their circumstances.
In Texas, unmarried couples are able to enter into legal relationships through contracts that outline the rights, duties, responsibilities, and other aspects of their relationship. A cohabitation agreement may address how expenses will be handled, how income will be shared or separated, how assets will be acquired and under whose name, what will happen to assets in the event the relationship terminates, and how disputes are to be resolved. Partners have a great deal of flexibility in defining the comprehensiveness of their agreement.
Regardless of whether an unmarried couple decides to form a cohabitation agreement, they certainly should take advantage of other aspects of estate planning, including wills, living wills, medical and financial powers of attorney, funeral/burial designations and adult guardianship. For partners who are considering a cohabitation agreement, they should first consult an attorney. Moreover, they may want to each have their own attorney to review the agreement to strengthen the enforceability. As with all estate planning, it is never a good idea for couples to try to create their own agreements, such as with online forms. With no laws to fall back on in Texas, a cohabitation agreement can be a useful tool for partners to formalize and protect their relationship.
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Lorie Burch has a private practice that focuses on wills, trusts, powers of attorney, and other estate planning matters. Lorie believe in a thorough and comprehensive approach, particularly for GLBT couples who do not have laws to fall back on to enforce their rights. Lorie can be reached at 972-385-0558 or at www.burch-law.com.
Lorie Burch received the Chamber's 2007 Business Person of the Year Award.
READ THIS: Legal Disclaimer Please note that the information provided is for informational use only. This is not specific legal advice and no attorney-client relationship has been created. No representations or warranties are made regarding the applicability of the information conveyed to your situation.
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