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Cohabitation Agreement: What Is It?

A cohabitation agreement is an agreement between a couple who plan to live together as a unit, but without becoming involved in a legal marriage. A cohabitation agreement is legally binding. It helps protects the rights of the individuals as a couple while also providing individual protection to their assets. A cohabitation agreement should expressly mention that the individuals are establishing themselves as a unit and plan to share in each other's estates, pensions or profit sharing, other named assets, and the division of household expenses. Cohabitation agreements can also explain how other items should be handled.

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