Tuesday, March 6, 2007

Cohabitation Agreements - Why?

It seems that this blog has one reader. They asked me a very pertinent question about cohabitation agreements - what good is it going to do me?

In turn I am transforming that question into a why do a cohabitation agreement question. My answer really depends on the financial aspects of the relationship. A cohabitation agreement - at a minimum - sets out how the property bought by the two should be divided if there is a break up, what obligations the one has to other financially regarding debts and investments, and the use of the funds of each for the two. The cohabitation can also set out the personal obligations of each to the other. They very, very short answer is that if a couple merely wants to shack up, save some rent money, and will never buy things together and never commingle their funds, there is no need for a cohabitation agreement.

As an aside, I must admit that here is another example where professional focus does not always give an adequate answer to the client's question. I assumed that my discussion of cohabitation agreements showed why such an agreement was a good idea, what their uses were, and I must admit that I seemingly failed in that goal. Ironically, I posted this morning on my Civil & Business Law Blog a criticism of what I suspected to be the narrowly technical view taken by Wal-Mart's attorneys.

Be sure to check out my other posts on living together in Indiana. Just click on links below next to Labels.

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