A Cohabitation Agreement is an agreement that an unmarried couple enters into when they are living together or plan on living together but have chosen not to get married. A Cohabitation Agreement is used to outline what would happen if a relationship breaks up and/or outlines how finances are taken care of during the cohabitation. It is important that these documents are drafted properly to consider the legal and tax ramifications. When unmarried couples live in a house that is owned by one or both of the parties it is important to consider a Cohabitation Agreement.
If the parties intend to marry, they should consider a Prenuptial Agreement instead of a Cohabitation Agreement.