A cohabitation contract is a contract designed for two unmarried individual that are living together as a couple. The contract sets out what an individual in the relationships gets. Usually when these non-married couples breakup or split, the division of the property becomes the biggest problem. Usually under such conditions, the weaker party becomes the victim and losses everything, even if he owns it.
The biggest problem is that there is no particular law for the division of the possessions of these couples, as they have no relation under the law. Therefore a law was needed to address these issues, and so did a cohabitation contract come in.
What a Cohabitation Contract Does:
A cohabitation contract defines the limit; it defines what any of the individual will get, if the relationship ever ends. One should act very wisely while preparing cohabitation contract, as this document describes what percentage of the property, saving or personal belongings one would get. The contract also describes how the couple would handle children, if they have any, the contract defines how the individuals would treat their children, how they would support them socially and financially.
A cohabitation contract does not only define how to divide the property but, it also defines the way the couple would treat any sort of transaction. The contract allows you to decide how you would treat your joint bank accounts or debt. The contract even describes how the couple would spend money on daily basis.
Tips for you to Prepare a Cohabitation Contract:
Some couples may think that division of the property or finance would be very unromantic for their relationship; well you must know that it is very essential for making things work between you too. A signed contract would help you realize how much you are spending and how much you own as an individual. If you are planning to design a cohabitation contract for your relation, then here are some tips that would surely help you:
Make each other understand the situation and talk:
The most essential thing to do before signing a written contract is to talk to your partner about it. You both should talk and explain to each other what your finances are and how they would be divided. You both can discuss and decide that who does what and who gets what.
Cover everything that is important:
You must know that this contract making is very important and critical, therefore you must make sure that you included each and everything into it, be it your land, house, bills, bank accounts or anything, you must include them all and also define the pattern of possession so that you would have to face no issues in the future.
You can make two contracts:
Well when you would start making the list of things that you own, you would realize that the contract gets more and more complex; therefore you can make two or more contract that would have single issue discussed in it.
James is a lawyer; he says that people should really help young couples understand what they are getting themselves into, like the Toronto family lawyers do.