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Specialty tag(s): Cohabitation Agreements

Finding Love Later in Life: Why Cohabitation Agreements Are a Smart Choice

Aimee Pingenot Key, P. Lindley Bain | December 17, 2024

For many empty nesters, retirees, and those nearing retirement, finding love again is a beautiful chapter in life. “We have many clients who are empty nesters, nearing retirement, or retired who have found new love,” says Aimee Pingenot Key, a family lawyer with Goranson Bain Ausley, in D Magazine’s special feature on Divorce under the section Protect Your Peace—and Your Money—with a Cohabitation Agreement. “They are certain they want to live together and take care of each other as they grow older. However, they don’t want to meld assets or be considered common-law married by family or probate courts. This is where a cohabitation agreement, or domestic partnership agreement, comes into play.”

Cohabitation agreements offer a practical solution for couples who want to share their lives without the financial and legal entanglements of marriage. For many, past experiences, such as costly divorces, make them hesitant to remarry. “These couples tell me they really love each other, but their divorce was so expensive, they can’t go through marriage again,” Key explains. “Therefore, they want an agreement that lays out the terms of what this cohabitation will look like.”

What Is a Cohabitation Agreement?

A cohabitation agreement is a written contract that outlines how partners will handle shared assets, debts, and responsibilities while living together and if they ever decide to part ways. It also addresses what will happen if one partner passes away or becomes ill or incapacitated. These agreements are essential in Texas, where unmarried couples do not share the same legal protections as married couples. Without such an agreement, disputes can arise over property rights, financial obligations, or inheritance.

What Can Be Included in a Cohabitation Agreement?

Cohabitation agreements are highly customizable and can include:

• Property Ownership: Clarifying who owns what and how property is managed.
• Division of Assets and Debts: Outlining how financial matters will be handled during the relationship or after a separation.
• Financial Responsibilities: Specifying who pays for what, from household expenses to major purchases.
• Support Obligations: Determining whether one partner will provide financial support to the other.
• Arrangements for Children or Pets: Addressing care and responsibilities.
• Dispute Resolution: Establishing methods, such as mediation or arbitration, to resolve disagreements.

Why Details Matter

“There is much to consider, however, than simply splitting the household bills in this scenario,” Key says in D Magazine. For example, if one partner moves into the other’s home, what happens if the homeowner passes away or becomes incapacitated and is no longer able to pay bills or make decisions? Without an agreement, the surviving partner may be left without a place to live, or a way to pay joint expenses especially if the home is willed to the homeowner’s children.

Key recalls working with a couple in their 80s who faced this exact issue. “They decided to create a trust to pay property taxes and negotiated that the surviving partner would pay the utilities. They even discussed what furniture one partner could take with her should she move into a retirement community later. The other partner agreed to pay for her long-term care if he passed. Details like this are important so that families on both sides know what their loved ones’ wishes are and can deal with their grief at the loss of their loved one without legal headaches.”

Why Consider a Cohabitation Agreement?

Cohabitation agreements allow couples to focus on enjoying their time together without worrying about unforeseen complications. “I love that people never give up on love and can still meet their true love later in life,” Key says. “I think it’s far better to live together and be happy than have the last years of your life marked by unhappiness or loneliness.”

If you’re considering cohabitation with a partner, especially later in life, consulting a family lawyer can help you create a tailored agreement that protects your interests and ensures peace of mind for you and your loved ones.