Cohabitation Agreement vs. Prenuptial Agreement: Understanding the Difference

As more couples choose to live together before — or instead of — marriage, questions often arise about how to protect shared assets and financial interests. Two common legal tools are the cohabitation agreement and the prenuptial agreement, but they serve different purposes under the law.

Living together? Get a cohabitation agreement!

Prenuptial Agreement (Prenup)

A prenuptial agreement is a legal contract entered into before marriage. It outlines how assets, debts, income, and property will be handled during the marriage and in the event of divorce or death.

Key features include:

• Governed by family law statutes.

• Establishes expectations for property division, spousal support, and inheritance rights.

• Provides clarity and reduces potential disputes during a divorce.

Prenups are especially valuable when one or both partners have significant assets, business interests, or children from a prior relationship.

Cohabitation Agreement

A cohabitation agreement is a written contract between unmarried partners who live together. While it doesn’t have the same standing under family law as a prenup, it is enforceable under contract law and can provide similar clarity regarding financial and property arrangements.

Key features include:

• Defines ownership of property, household expenses, and joint purchases.

• Addresses how assets or debts will be divided if the relationship ends.

• Can include terms for pet ownership, support, or other shared commitments.

Without such an agreement, courts often have limited authority to resolve property disputes between unmarried couples — meaning one partner could lose their financial or property interests.

Why It Matters

Both agreements are proactive legal tools that help couples define expectations, prevent misunderstandings, and protect their individual interests. The main distinction lies in when and under what legal framework they operate:

• Prenup: Before marriage; governed by family law.

• Cohabitation Agreement: For unmarried partners; governed by contract law.

The Bottom Line

Whether you’re planning to marry or simply share a home and life together, clarity is key. Having a properly drafted agreement ensures both parties understand their rights and responsibilities — and minimizes conflict should circumstances change.

🕓 Ready to protect your future together?Schedule an online consultation to discuss which agreement best fits your situation: www.franciscamanchac.com/book-online