Consider Monica and Chandler of Friends fame. As their friendship transitioned into a romantic relationship, they eventually took the next step to live together before their season 7 marriage. This major storyline of an iconic show illustrated a changing social norm, one that has become even more popular since the show aired decades ago.

Cohabitation is often seen as an important step before taking the plunge and saying “I do.” However, that doesn’t mean this should be seen as a temporary stage that doesn’t require careful thought and consideration. Living together comes with risks, and a cohabitation agreement—including the collaborative kind—can help with risk mitigation.

A cohabitation agreement—when executed properly—is a legally binding document that can provide clarity and protection for couples moving in together or signing their first lease or mortgage paperwork together.

Here are some reasons couples like Monica and Chandler should consider a cohabitation agreement.

Property Ownership and Division:

A cohabitation agreement can clearly define how property—that brought into the relationship and that acquired during the relationship—will be owned and divided if the couple separates. This includes real estate (think: an inherited Manhattan apartment), vehicles (maybe even a classic Porsche), or that beloved burnt orange couch you’ve both grown attached to. Without such an agreement, disputes over who owns what can become complicated and emotionally charged, especially in states where property laws don’t automatically apply to unmarried couples. A well-drafted agreement can prevent conflict by specifying whether assets are jointly or individually owned and how they will be divided in case the couple is ever, well, “on a break.”

Financial Responsibilities:

Not every roommate situation is financially equal. Maybe one roommate is often out of work while the other quietly covers the bills. It’s also not uncommon that one partner is a spender while the other is a saver. As a result, financial expectations are another key component of a cohabitation agreement. These agreements can outline who pays the rent or mortgage, utilities, groceries, and other household expenses. They may also address what joint accounts will be used for and how financial contributions will be tracked or divided. Clarifying these roles before picking up the keys to a shared apartment or signing mortgage paperwork helps avoid misunderstandings and resentment.

Estate Planning Considerations:

Because unmarried partners are not automatically granted legal rights in the event of illness or death, a cohabitation agreement can be an important part of broader estate planning. While it doesn’t replace a will, trust, or medical directive, it can support those documents by affirming each partner’s wishes and legal intentions. It may also include language about a partner’s right to inherit certain assets or remain in the shared home. This can be especially important for long-term partners who are not married but want to ensure that each has legal protections similar to those of a spouse.

Dispute Resolution and Separation Terms:

In addition to outlining financial and property matters, cohabitation agreements can specify how the couple will resolve potential disputes (through mediation or arbitration) instead of immediately turning to litigation. These agreements can also address what happens if the relationship ends: how shared possessions, real estate, or even pets (even a duck or a monkey!) will be handled and whether one partner expects financial support (commonly referred to as palimony).

While Monica and Chandler never faced that situation, having a plan can help set real-life couples up for success. By discussing expectations in advance, couples can navigate a breakup with greater clarity and less conflict, preserving emotional and financial well-being during an already difficult time.

With a well-crafted cohabitation agreement, couples can gain clarity, avoid potential pain points, and focus on the joys of writing a new chapter together.

In the end, Monica and Chandler got their happily-ever-after without a cohabitation agreement in place, but real-life couples don’t benefit from a sitcom script. A little planning now can help protect what matters most in the future, so you can focus on building your own lasting love story.

If you’d like to talk with an attorney about a cohabitation agreement or the collaborative approach to legal documents, contact Miroslavich Law today. We’d love to chat over a cup of coffee!

Estate Planning