When one person owns a house and their partner moves in, here are some key things to keep in mind when creating a Cohabitation Agreement:
Ownership of the Home: The owner of the home should be identified in the Cohabitation Agreement, along with a clear statement that the ownership of the home remains with that person. It’s important to clarify that the partner who is moving in does not have any ownership rights in the home, unless they contribute to the mortgage or other expenses related to the property.
Rent or Mortgage Payments: If the partner who is moving in will be contributing to rent or mortgage payments, this should be specified in the Cohabitation Agreement. It’s important to clarify whether these payments will be considered rent, mortgage payments, or a form of contribution towards the home’s equity.
Maintenance and Repair: The Cohabitation Agreement should also specify which party will be responsible for the maintenance and repair of the home. This can include things like cleaning, repairs, and landscaping.
Termination of the Agreement: The Cohabitation Agreement should include provisions for what will happen if the relationship ends. This can include how the partner who is moving out will be compensated for any contributions they have made towards the home.