Why should you have a cohabitation agreement?

Signing a cohabitation agreement may seem unromantic, but it is a wise investment in both financial security and a healthy relationship. Here are the most important reasons why you should have one:

1. Fair distribution in the event of a breakup
When a cohabitation relationship ends, assets are generally distributed according to who owns what. Without a written agreement, disagreements can easily arise about what actually belongs to whom—especially if one person has contributed more than the other to the purchase of joint assets.

2. Securing your home
Many cohabitants buy a home together. If one has paid more than the other, this can have major financial consequences in the event of a breakup. A cohabitation agreement stipulates ownership shares and how any increase in value is to be distributed, thereby contributing to financial predictability.

3. Avoid financial disagreements
Clear agreements about financial contributions prevent conflicts. With a cohabitation agreement, you can specify who is responsible for which expenses—which creates security and prevents minor irritations from escalating.

Security in the event of death

Cohabitants do not have the same inheritance rights as spouses. Without a will, they do not inherit from each other, unless they have children together. Although a cohabitation agreement cannot replace a will, it can help to regulate financial matters in the event of death.

What should a cohabitation agreement contain?

A good cohabitation agreement should be thorough and tailored to the couple's situation. Here are the points that should be included:

1. Ownership of the property

-Who is listed as the owner of the property?
-How are the ownership shares distributed if the property was purchased jointly?
-Should the increase in value be distributed equally or according to ownership share?
-What happens if one party wants to sell or move?

2. Allocation of common expenses

-How are expenses for loans, electricity, insurance, and similar items distributed?
-Should value increases be adjusted based on loan payments?

3. Ownership of household goods and possessions
-Who owns furniture, cars, and other household goods?
-How are jointly purchased possessions divided in the event of a breakup?

4. Debt and loans

-Do you have joint loans, and how are these handled in the event of a breakup?
-Should compensation be paid if one person has paid off the other's loan?

5. Financial settlement in the event of separation

-How should assets be divided if the relationship ends?
-Should one party have the right of first refusal on the shared home?
-How should joint investments be handled?

6. Rules in the event of death

-Even if the contract does not regulate inheritance, it can specify the distribution of assets in the event of death.
-If you want financial security for the surviving partner, a will should also be drawn up.

Summary

A cohabitation agreement is a useful legal tool for ensuring fair distribution of assets and reducing the risk of conflict. It provides clarity, security, and clear guidelines—both in everyday life and in the event of a breakup.

To ensure that the contract is legally valid and covers what is important to you, we recommend that you seek the assistance of a lawyer. Please feel free to contact us—we will be happy to help you draft a cohabitation agreement that is tailored to your needs.

The author of this article is a partner in the Family, Inheritance and Probate Department at Langseth Advokatfirma DA, and has extensive experience in providing advice and conducting litigation in this field.