Cohabitation Agreement: Relationship Protectors

Partners do not begin a relationship expecting it to fail, but unfortunately many relationships fail.  It is important to be prepared.  If you are living together and not married, a cohabitation agreement may help you avoid financial pitfalls and future emotional stress.

 A cohabitation agreement can protect you and your partner in the event of a future break-up.  If you have such an agreement, you can quite possibly avoid long, expensive and bitter legal battles.

Cohabitation Agreements: Relationship Protecting Contracts

In Texas, your live-in partner may be considered your spouse. 

Without a written agreement, cohabitating couples in Texas could risk that their relationship constitutes a common law marriage. Should the couple decide to part ways, and a judge rules that they are married to one another, the wealthy party could lose considerable assets in a community property state.

While Texas law is clear regarding what constitutes a common law marriage, it is sometimes more difficult to disprove than it is to prove.  Without a written agreement disproving common law marriage, the income and property acquired during the relationship could later become subject to division by the courts. 

Same Sex Couples Need Protection of Cohabitation Agreement

Now that same sex marriages are recognized in Texas, gay couples face common law marriage issues.    Regardless, same-sex couples can and should enter into formal written cohabitation agreements in Texas.

Although palimony suits have been popular since the1970’s, Texas courts typically will not enforce a “nonmarital conjugal cohabitation agreement” that is not in writing.  A striking example of this is found in the 1990’s suit by Thomas Zaremba against Van Cliburn .  Since there was no written agreement, the court eventually dismissed Zaremba’s suit, but not until after a long an undoubtedly expensive, legal battle.

  A clear, written cohabitation agreement can define your relationship.

Cohabitation agreements, like pre-nuptial agreements used to be discussed only by the wealthy.  Those who failed to acknowledge the need to prepare for possible trouble in their relationships made headlines.  Much ado was made of athletes (remember Martina Navratilova and Judy Nelson), actors (Lee Marvin’s landmark suit coining the term palimony) and celebrities (Fort Worth’s Van Cliburn) whose partners had their day in court to try to obtain a piece of the pie.

 The truth is that every couple should have a written agreement.  You would never start a business with another person without a clear idea of what to expect and a written contract.  Your personal life deserves the same protection.

Today, a cohabitation agreement in Texas can include a wide array of protection and perks for both sides.

 Your Cohabitation Agreement Should Have:  A statement disavowing the intent to be married or common-law married; A property division agreement for present assets; A property division agreement for handling future assets; A monthly spending budget for fixed expenses; A clarification of financial arrangements (who pays what, how much and when); A designation of separate property.

 Your Cohabitation Agreement May Have:  A monthly budget; A shopping budget; A list of requirements pertaining to wills, trusts, life insurance, etc.; A “signing bonus” at the outset of the agreement.

Absolutely you need an attorney for a cohabitation agreement.  

Hire a qualified family law attorney to draft your cohabitation agreement.  Have your partner hire a qualified family law attorney to review the agreement.

The best way to be sure that each partner is represented fairly and that the agreement will hold up in court is to use attorneys.  The attorney will take time to explain how your agreement will work, provide an enforceable document and help protect you and your assets.
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