With the growing amount of people living together but not being married, prenups or cohabitation agreements have become increasingly more popular. Actual contracts are being drafted by lawyers to protect each party’s assets. In a poll of divorce attorneys, the American Academy of Matrimonial Lawyers found an increase in court disputes between unmarried couples who had lived together without such agreements.
With a record low 51% of adults getting married, co-habitation agreements become increasingly more important when the purchase of a house, business, or birth of a child come into the picture. If one party has credit card debt or student loans, a cohabitation agreement could protect the other party from the liability. Cohabitation agreements save years of litigation and money down the road. As people get older, they realize they have more things to protect and, in the case of couples who have been previously married and divorced, they want to insure that their children receive an inheritance while still making provision for their new partner.
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