Cohabitation occurs when two people live together, are engaged in an intimate relationship and do not have a legal commitment such as a valid marriage or recognized domestic partnership. When couples cohabitate, California law does not recognize their individual assets as community property as when two people are married. It is not hard to see that people with substantial financial assets put themselves at great risk without some sort of agreement or legal protection.
If you are in a long-term relationship and plan to share expenses, buy property together, invest together and mix assets, the best option is to protect you and your partner with a cohabitation agreement. If a problem arises in the relationship, you will both know how to split your possessions without having to follow the legal rules of divorce.
These types of agreements are governed by contract law principles alone. Therefore, it is essential to cover all aspects you want addressed because the law will not protect you in case your relationship ends. A cohabitation agreement can also give each party an idea of the expectations of the relationship with the legal enforceability to protect against financial ruin or the loss of support that was promised.
