Many couples choose to live together without getting married. While this arrangement offers flexibility, it can also create legal challenges if the relationship ends or one partner becomes incapacitated. A cohabitation agreement helps unmarried couples protect their rights and avoid disputes.
Defining a cohabitation agreement
A cohabitation agreement is a legal contract between two unmarried partners who live together. It outlines financial responsibilities, property ownership, and other important matters. This agreement ensures that both partners have a clear understanding of their rights and obligations during and after the relationship.
Property and asset protection
Without a cohabitation agreement, Maryland law does not provide automatic property rights to unmarried couples. If the relationship ends, dividing property can become complicated. A cohabitation agreement can specify how assets acquired during the relationship will be distributed, preventing misunderstandings and legal battles.
Financial responsibilities and debt management
Couples often share expenses, such as rent, utilities, and groceries. A cohabitation agreement can outline how each partner contributes to these costs. It can also address responsibility for debts, ensuring that one partner is not unfairly burdened with financial obligations after the relationship ends.
Estate planning and medical decisions
Unmarried partners do not automatically have inheritance rights or the ability to make medical decisions for each other. A cohabitation agreement can include provisions for estate planning, such as naming a partner as a beneficiary in a will. Additionally, partners should create powers of attorney and healthcare directives to ensure they can make decisions for each other in an emergency.
Enforceability in Maryland
Maryland courts recognize cohabitation agreements as long as they are in writing and signed by both partners. The agreement should be fair, voluntary, and include full financial disclosure from both parties. Having an attorney review the document can help ensure its enforceability in case of a dispute.
A cohabitation agreement provides clarity and security for unmarried couples. It protects both partners’ interests and helps prevent legal complications. Taking the time to create a well-structured agreement can strengthen a couple’s financial and legal foundation.
