Legal Definitions - living-together agreement

A living-together agreement, also known as a cohabitation agreement, is a legal contract that outlines the financial and property arrangements between two people who live together. This agreement is similar to a prenuptial agreement, but it is for couples who are not married.

Example 1: Sarah and John have been living together for three years. They decide to create a living-together agreement to protect their individual assets and clarify their financial responsibilities. In the agreement, they outline how they will split rent, utilities, and other household expenses. They also specify how they will divide their property if they decide to separate.

Example 2: Tom and Lisa have been living together for six months. They decide not to create a living-together agreement because they believe they can work out any financial issues that may arise. However, when they break up a year later, they have a difficult time dividing their shared assets and debts.

These examples illustrate how a living-together agreement can help couples protect their individual assets and clarify their financial responsibilities. Without an agreement, couples may face difficulties when trying to divide their property and debts if they decide to separate.