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Simple English definitions for legal terms
cohabitation agreement
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A quick definition of cohabitation agreement:
A cohabitation agreement is a document that two people who live together can sign to decide how they will share their money and property. It's like a plan for how they will take care of things if they ever decide to separate. It's also called a living-together agreement and is similar to a prenuptial agreement.
A more thorough explanation:
A cohabitation agreement is a legal contract that outlines the financial and property arrangements between two people who live together but are not married. It is also known as a living-together agreement. This agreement is similar to a prenuptial agreement, but it is for couples who are not married.
Example 1: John and Jane have been living together for five years. They decide to create a cohabitation agreement to protect their individual assets and clarify their financial responsibilities. The agreement outlines how they will split expenses, who owns what property, and what will happen if they decide to separate.
Example 2: Sarah and Tom have been dating for a year and decide to move in together. Before they do, they create a cohabitation agreement to protect their individual assets and clarify their financial responsibilities. The agreement outlines how they will split expenses, who owns what property, and what will happen if they decide to separate.
These examples illustrate how a cohabitation agreement can help couples who live together but are not married to protect their individual assets and clarify their financial responsibilities. It can also help them avoid legal disputes if they decide to separate.