Cohabitation and Prenuptial Agreements
Married people have rights that people who cohabit don't. The thought of losing assets to a spouse in a messy divorce keeps some people from getting married unless a prenuptial agreement is signed. Both cohabitation agreements and prenuptial agreements uphold rights for couples. Because states may not always enforce cohabitation or prenuptial agreements, it is a good idea to have legal counsel when trying to enforce these contracts, according to Lawyers.com.
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Cohabitation Agreements
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Cohabitation is living together as a couple without being married. Because couples who cohabit do not have the same rights as married people regarding property, finances, health care and after-death issues, a cohabitation agreement can address these issues. The cohabitation agreement is a written contract between two people who live together that will address any concerns they have in the event of a breakup or a death, according to Lawyers.com.
Prenuptial Agreements
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Prenuptial agreements, often called prenups, can sometimes carry negative connotations. The person who didn't bring up the prenup, for example, will often accuse the other of being unromantic. But, if people are being realistic, they will realize that there is more to marriage than just emotions. A marriage is also a financial union. A prenuptial agreement can help to ensure the well-being of the marriage, according to the Lambda Sigma Upsilon Latino Fraternity Inc. The prenup protects both parties' interests in property and defines each person's rights in case of a divorce or a death.
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Avoid Legal Battles
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Both cohabitation and prenuptial agreements help people avoid legal battles over property issues when the relationship ends. When couples can sit down and discuss these types of agreements prior to getting married or living together, they are displaying their openness to discussing their finances, which is no small feat. According to licensed clinical social worker Allan Schwartz, Ph.D., along with sexuality, money management is one of the most difficult issues for couples to discuss with each other.
Peace of Mind
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Another benefit of cohabitation and prenuptial agreements is that they let both parties know beforehand who will keep which assets. Also, these agreements can guarantee that the less financially secure partner gets a fair share of the assets and that the more financially secure partner will have a limited loss of assets, according to Lawyers.com. These agreements can also disclose any particular expectations of the relationship, not only financial but also personal, such as providing for children from a previous relationship.
Hire a Lawyer
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Your best course of action before drafting a cohabitation or prenuptial agreement is to hire lawyers who are familiar with family law and estate planning law, according to Lawyers.com. Each party should have his or her own lawyer so that one party will not feel unfairly represented. Either the lawyers can help you and your partner to draft an agreement or the lawyers can do it themselves. States vary, but a good lawyer will know how to draft the agreement so that it will hold up in court.
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References
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