Faqs About Living Together Contracts
A couple's decision to live together is a major milestone in their relationship. However, if you are not married, it can potentially lead to legal complications when it comes to property and finances. You and your partner can create a living together contract to protect both of you legally and financially. Before creating the contract, here is what you need to know.
What Is a Living Together Contract?
A living together contract is a legal document that outlines how finances and property are handled in the relationship. Your contract could cover everything from who pays which utility bills to what happens if you buy a home together and split up. The contract is similar to a prenuptial agreement and can actually be used to create one if you and your partner decide to get married in the future.
What Should Be in Your Contract?
The living contract needs to focus on the legal and financial aspects of your relationship. For instance, you can detail what happens to any assets that are inherited while you are together. The contract does not need to be limited to property and finances acquired during the relationship. You can also include guidelines for what happens with your assets that you had going into the relationship.
Your contract also needs to take into account your debts. If you and your partner plan to split all of the bills equally, state it in the contract. You can even include an agreement that requires both partners to agree to major purchases or new lines of credit. Remember, the financial decisions you and your partner make during your relationship could impact your credit history for years to come.
You and your partner should also consider including guidelines for dealing with disputes. In the event that you do go your separate ways, you can avoid going to court to settle disagreements. You can include a stipulation that you and your partner have to put forth a good faith effort at resolving the issues at mediation before resorting to court. Going to mediation does not keep you from going to court, but it can help avoid a costly legal battle.
What Should Not Be in the Contract?
The living together contract is not a chance for you and your partner to make arrangements about chores, such as washing dishes and vacuuming. There should be nothing in your contract that is not enforceable by law. If you and your partner split up and wind up in court arguing about your possessions, the judge will use the contract to help decide who gets what.
To ensure that you and your partner cover all of the bases, work with a family lawyer to create the right contract.