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Cohabitation Agreement
I need a cohabitation agreement that outlines the financial responsibilities and property rights of both parties living together, including how expenses will be shared and the division of assets in the event of separation. The agreement should also address dispute resolution methods and any arrangements regarding pets.
What is a Cohabitation Agreement?
A Cohabitation Agreement is a legally binding contract between two people who live together but aren't married. It spells out how they'll handle their finances, property, and other shared responsibilities during their relationship and if they separate.
Common in Australian de facto relationships, these agreements protect both partners' interests by clearly setting out who owns what, how bills get split, and what happens to jointly acquired assets. While not mandatory under Australian Family Law, having one in place can save significant stress and legal costs if the relationship ends, as it provides a clear framework that courts will generally uphold.
When should you use a Cohabitation Agreement?
Consider creating a Cohabitation Agreement when you're about to move in with your partner or soon after. The ideal time is during the early, harmonious phase of living together - before any conflicts arise about money, property, or shared responsibilities.
It's especially important to set up this agreement if you're bringing significant assets into the relationship, planning major purchases together like a house, starting a business venture, or expecting different financial contributions to household expenses. Under Australian Family Law, de facto partners can claim relationship property after two years of living together, making early documentation crucial.
What are the different types of Cohabitation Agreement?
- Simple Cohabitation Agreement: Basic version covering essential living arrangements and financial responsibilities
- Cohabitation Property Agreement: Focuses specifically on property ownership, joint purchases, and asset division
- Prenup For Unmarried Couples: Comprehensive agreement addressing future asset protection and financial planning
- Common Law Partner Agreement: Tailored for long-term de facto relationships with shared assets and responsibilities
- Cohabitation Prenuptial Agreement: Detailed agreement combining living arrangements with future marriage considerations
Who should typically use a Cohabitation Agreement?
- De Facto Partners: The primary parties who create and are bound by the agreement, including same-sex couples living together in a domestic relationship
- Family Lawyers: Draft and review agreements to ensure they comply with Australian Family Law and protect both parties' interests
- Financial Advisors: Help partners understand and plan the financial aspects of their agreement, especially regarding assets and investments
- Property Experts: Assist in valuing shared assets and providing guidance on property-related clauses
- Mediators: Help partners negotiate terms and reach mutual understanding before finalizing the agreement
How do you write a Cohabitation Agreement?
- Asset Documentation: List all individual assets, debts, and financial accounts each partner brings to the relationship
- Income Details: Gather proof of both partners' current income, including salary statements and investment returns
- Living Expenses: Document regular household costs and agree on how they'll be shared
- Property Information: Collect details of any jointly owned property or planned purchases
- Future Plans: Outline shared financial goals and responsibilities
- Legal Requirements: Use our platform to generate a compliant agreement that includes all mandatory elements under Australian law
- Independent Review: Each partner should carefully review the draft before signing
What should be included in a Cohabitation Agreement?
- Party Details: Full legal names, addresses, and relationship status of both partners
- Property Rights: Clear description of individual and jointly owned assets, including future acquisitions
- Financial Obligations: Detailed breakdown of shared expenses and individual responsibilities
- Separation Terms: Process for dividing assets and resolving disputes if the relationship ends
- Governing Law: Statement confirming the agreement falls under Australian Family Law jurisdiction
- Disclosure Statement: Confirmation that both parties have provided complete financial information
- Execution Requirements: Dated signatures of both parties, witnessed appropriately
What's the difference between a Cohabitation Agreement and a Business Acquisition Agreement?
A Cohabitation Agreement differs significantly from a Business Acquisition Agreement in both purpose and scope. While both are legally binding contracts, they serve entirely different functions in Australian law.
- Purpose: Cohabitation Agreements regulate personal relationships and shared living arrangements, while Business Acquisition Agreements handle the purchase and transfer of business assets
- Parties Involved: Cohabitation Agreements are between domestic partners, whereas Business Acquisition Agreements involve buyers, sellers, and often shareholders
- Legal Framework: Cohabitation Agreements fall under Family Law and de facto relationship provisions, while Business Acquisition Agreements operate under Corporate and Commercial Law
- Asset Coverage: Cohabitation Agreements focus on personal assets and household arrangements, but Business Acquisition Agreements deal with commercial assets, intellectual property, and business liabilities
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