Today we will discuss domestic partnership agreements.
Couples who do not marry will not have any legal protections for their assets if their relationship ends. A domestic partnership or cohabitation agreement may help outline financial expectations during the partnership and how assets should be divided if the relationship ends. It’s important to note that these arrangements may have unfavorable income tax and gift tax consequences, which should be considered when drafted. Additionally, not all states recognize agreements by unmarried couples, so it’s imperative to speak with an attorney who is familiar with the state law.
When getting into a relationship, it’s hard to envision it ending, but that’s a very real possibility. This is one reason that makes a domestic partnership agreement so important.