Many couples in Pennsylvania live together without getting married. Cohabitation agreements offer these people a way to protect their assets.
For example, these civil contracts should clearly define which assets have individual and joint ownership. This helps prevent disputes. It also ensures fair treatment if separation occurs or one partner dies.
Personal property
Cohabitation agreements allow individuals to protect their personal property, investments and assets acquired before and during the relationship. The agreements provide assurance and mitigate the risk of asset loss or disputes. The contracts can cover issues such as real estate, businesses, artwork and debts.
Financial rights and responsibilities
Cohabitation agreements can specify each party’s financial contributions to shared expenses. These expenses may include rent, mortgage payments, utilities and other household costs.
By clearly outlining these responsibilities, cohabitants can prevent financial disputes and ensure equitable treatment. For example, the median value of a house in Philadelphia is $215,500. Couples can use their cohabitation agreements to protect their interests if one partner buys a house or if both partners buy a home together.
Cohabitation agreements can also address potential support obligations between partners. Partners can get protection from unexpected financial obligations.
Potential claims
Cohabitation agreements also help deal with any potential claims to assets by third parties. The contracts clearly document asset ownership and the nature of the relationship. In this way, they can protect assets from claims by creditors, family members or other parties.
These agreements provide peace of mind and financial security for unmarried individuals in Pennsylvania.