What You Need to Know About Cohabitation Agreements in Illinois
As more and more couples are choosing to live together without getting married and raise families together, cohabitation agreements have risen in popularity in Illinois. Many people believe living together without tying the knot frees them from certain obligations. A cohabitation agreement ensures the individuals involved in the agreement are protected against such assumptions.
What is a Cohabitation Agreement?
A cohabitation agreement is basically a prenuptial agreement without the nuptials. The main difference between it and marriage is the cohabitation agreement defines the terms of the contract, thus allowing the involved parties to dictate the terms of the agreement – as well as their own rules, in case either party terminates the relationship. In contrast, marriage IS a contract, so Illinois’s law of dissolution of marriage can be used to enforce the divorce process, including maintenance and support.
The best cohabitation agreement is one that addresses the concerns and needs of each individual in the relationship. This includes the sharing of expenses, whether it involves children or house expenditures, as well as commingling assets. Additionally, if a couple owns property together, they can also claim tax deductions on it as a couple.
In case either of them has debt or other business interests, those should be mentioned in the agreement as well. It can be drafted before and after the couple decides to live together should address the following issues:
- Coverage for health insurance
- Mutual debt payments
- Property division in case they break up
- Parental responsibilities in case they have children
In other words, the agreement basically allows cohabiting couples to finalize how they are going to comingle their finances and how their assets will be distributed in case their relationship comes to an end. This can come in handy if, during their relationship, they cannot figure out how to settle certain debts or divide property fairly.
This property can be anything from furniture and cars to artwork and pets. However, keep in mind this agreement does not influence parenting time and child support payments. These issues have to be settled in court. In any case, cohabitation terminates maintenance in Illinois unless otherwise agreed by the involved parties.
Illinois also recognizes common law marriage, which refers to couples who are married but have lived apart from one another for an extended period. However, it only does so for couples who moved to the state and their previous state of residence considered their marriage legally binding. If that is the case, they are entitled to the same protection and rights as legally married couples in the state they are currently living in. Illinois itself does not have common law marriage.
Frequently Asked Questions About Cohabitation Agreements In Illinois
What Is a Cohabitation Agreement?
A cohabitation agreement is a comprehensive written contract designed for two unmarried individuals who choose to live together. This agreement serves as a vital roadmap, outlining the terms under which both parties will manage their shared lives, including property, finances, debts, and responsibilities. Essentially, it functions like a prenuptial agreement, offering similar protections without the formal recognition of marriage. The cohabitation agreement typically addresses several important aspects, such as:
Ownership and Division of Property – How assets acquired during the relationship will be handled.
Shared Expenses and Financial Contributions – Clear guidelines on how expenses will be divided and financial contributions will be managed.
Debt Responsibility – Clarification on which partner is responsible for any debts incurred during the relationship.
Rights to Support or Compensation After Separation – Provisions for financial support or compensation if the relationship ends.
Plans for Dispute Resolution – Mechanisms for resolving any disputes that may arise.
Are Cohabitation Agreements Legally Enforceable in Illinois?
In Illinois, cohabitation agreements are not formally recognized as contracts akin to marriages, and courts will generally not enforce agreements attempting to mimic marital rights. However, these agreements can still be valid under standard contract law. As long as the terms are clear, voluntarily agreed upon by both parties, and supported by consideration (such as mutual promises or financial contributions), courts may choose to enforce them similar to any other civil contract.
What Happens to Property Acquired During Cohabitation?
In the absence of a cohabitation agreement, property acquired during the relationship does not automatically become jointly owned. Illinois law does not apply marital property rules to unmarried couples, which leads to the following implications:
- Property titled in one partner’s name is presumed to belong solely to that person. This means that if a partner purchased a home solely in their name, the other partner has no legal claim to that property.
- Joint Purchases may require tangible proof of shared ownership or contributions, such as receipts or bank statements illustrating who paid what.
- Disputes over Property can become complex and contentious without clear documentation outlining each partner’s rights.
By having a well-crafted cohabitation agreement, both partners can clarify ownership issues and division processes, thus significantly reducing the likelihood of future legal disputes.
What If We Break Up?
If the relationship comes to an end, a cohabitation agreement plays a pivotal role in guiding the fair division of assets and debts. It may also include specific terms for:
Buyouts of Shared Property – Procedures on how one partner can buy the other’s share of any jointly owned items or property.
Reimbursement for Contributions – Mechanisms to ensure that any financial contributions made by one partner toward shared property or expenses are duly compensated.
Temporary Support or Relocation Assistance – Terms that outline any financial support one partner may provide to the other during the transition period post-separation.
Without a cohabitation agreement, each partner typically retains ownership of their individual belongings, which can lead to potential disputes requiring judicial intervention based on general contract or property law.
What About Children?
Cohabitation agreements do not govern child custody, support, or parenting rights. These critical matters are ruled by Illinois family law, which is applicable to all citizens regardless of marital status. Nonetheless, couples may choose to include provisions in their cohabitation agreement that address shared parenting expenses or mutual expectations about raising children. Such provisions can help enhance the understanding between partners but cannot override court decisions if matters escalate to legal proceedings.
What Should Be Included in a Cohabitation Agreement?
A well-structured cohabitation agreement should contain several key elements:
Full Disclosure of Assets and Debts – Each partner should fully disclose their financial situation, including assets and liabilities, to ensure transparency.
Clear Terms for Property Ownership and Division – Specific stipulations on how property will be owned and divided in various scenarios, including separation.
Expense-Sharing Arrangements – Detailed plans regarding how day-to-day expenses will be handled to avoid misunderstandings.
Terms for Separation or Death – Guidelines on what will happen in case of separation or the unfortunate event of one partner’s death. – **Signatures and Dates:** Both parties should sign and date the agreement to affirm their mutual consent. To ensure that the agreement is comprehensive, legally sound, and tailored to your unique circumstances, it’s wise to consult with a qualified attorney.
Can We Use Online Forms?
While it is possible to find online templates for cohabitation agreements specific to Illinois, caution is recommended. These forms may not fully address the individual circumstances of each couple or the latest legal developments.
To achieve the best possible protection and ensure that the agreement reflects specific needs, a customized document created with the assistance of a legal professional is advisable. This approach can provide stronger legal backing and peace of mind for both parties.
Call Our Schaumburg Family Law Attorney Today
Whether you want to have a legally binding cohabitation agreement drawn up or want to file for divorce, you need dedicated lawyers in your corner. Get in touch with us at the Law Office of Fedor Kozlov in Schaumburg, Illinois, today by calling 847-241-1299 and book a consultation today. We deal exclusively in family law cases and offer a range of services from negotiations to dispute resolution.
