Buying a Home Together & Cohabitation Agreements

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Are you thinking of buying a house or condo together with your partner or significant other?

Gone are the days where people only buy a house together if & when they’re getting married.

These days people are buying a house or condo together long before wedding vows might be a consideration, if any consideration at all. 

And these days people are buying a house or condo together and their finances and financial contributions to that real estate purchase might not be balanced or equal. 

And so, I’m often asked about cohabitation agreements and I’ve pointed many clients to the best lawyers I know to help them with this topic. 

A lot of people think that if the property is in just one name that’s all that matters. Not necessarily so, depending on how long you live together.

A cohabitation agreement can stipulate any and all details important to each person moving in and/or buying a home together.

Such as; here’s what each person has contributed. And of course,  if they  ever split-up  in the future and sell the property, or if one person moves  out, then here’s what happens to the division of property, and money.

Contributions to a property can be “FINANCIAL” in the forms of  downpayment, mortgage  payments, partial mortgage payments, significant repairs or  renovations. Contributions can also be physical work done to add value to a property. 

By the way, if one of you owned a property prior to meeting each other and you moved-in together, or, you bought a  property together with just one name on Title, BUT you subsequently got married, then it likely became a matrimonial home which can change everything.

If you have or had a cohabitation agreement but later get married, speak to a Lawyer about changing the cohabitation agreement to a pre-nup.

Basically, a cohabitation agreement and/or a Pre-Nup can specify who is entitled to what (if any) portion of money, property, other  assets,  investments, residual income, and many other details, if/when a relationship were to end in the future.   

Many people think that a  cohabitation agreement ONLY has to do with the HOUSE or CONDO and nothing  else, but a Prenup can include all assets, money,  investments, and much more. 

And some people think that if they’re the only name on title of the  property then they don’t  need a cohabitation agreement. BOTH     INCORRECT!

There  really  is  only  ONE  main difference between a  cohabitation agreement and  a  prenup. 

A cohabitation agreement  applies to situations where two people are going to live together, but not get married. Whereas a Pre-Nup or Pre-Marriage Contract applies when two people are getting married.  

A cohabitation isn’t just some brief document that ONLY applies to real estate.  

In closing I’ll leave you with this.  Many people hate the idea when they’re first in love and happy to consider things like cohabitation agreements or pre-nups. So they just assume everything will work out or the person they NOW  love & trust would never do anything stupid or selfish or spiteful. 

And/or they hope that if the relationship  fails  in  the  future  then  the  Law  is  on  their  side.  One  thing  I’ve  seen  time  and  time  again  with  clients  and  their  lawyers  is  that  NOTHING  is  ever  obvious  and  NOTHING  should  be  left  to  chance.  

Unless you are both starting  with NOTHING and both contributing  exactly equal then take the time to research this further.  

And if you have questions about  this in more detail I can  definitely  refer you to the best lawyers in  town for these types of matters, so don’t hesitate to ask me. I’m happy to do that to make sure you get the facts. [/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]