A cohabitation agreement allows unmarried partners to establish agreements about their shared life. A crucial part of this agreement is the division of assets and debts, both during the relationship and in the event of its termination.
What is a cohabitation agreement?
A cohabitation agreement is a legal document in which partners make agreements about their cohabitation. This can range from the division of household expenses to ownership rights for joint purchases. While partners can draw up such an agreement themselves, it is advisable to have it drawn up by a notary for legal certainty and recognition by authorities such as the Tax and Customs Administration and pension funds.
Division of assets during the relationship
In the cohabitation agreement, partners can determine which assets are jointly owned and which remain private property. This prevents misunderstandings and conflicts. For example, personal belongings acquired before cohabitation generally remain the property of the original owner, while joint purchases made during the relationship are considered jointly owned.
Division upon termination of the relationship
At the end of a relationship, joint assets and debts must be divided fairly. The cohabitation agreement can contain specific agreements on this division. Without a cohabitation agreement, the division becomes more complex, and partners must mutually determine who is entitled to which assets. Creating a list of joint assets and determining their value and allocation can be helpful in this process.
Residence clause
A key element that can be included in a cohabitation agreement is the right of survivorship. This stipulates that joint assets automatically pass to the other partner after the death of one partner. This prevents heirs from claiming these assets and provides security for the surviving partner.
The importance of clear agreements
Recording agreements in a cohabitation agreement provides clarity and prevents legal disputes when the relationship ends. It's essential to regularly review the agreement and adapt it to changing circumstances, such as the birth of children or the purchase of a house.
Conclusion
A cohabitation agreement is a valuable tool for unmarried partners to legally and financially structure their shared life. Making clear agreements about the division of assets and debts, both during the relationship and upon its termination, can prevent many problems. It is advisable to seek legal advice when drafting a cohabitation agreement and have the document notarized for maximum legal certainty.
