Cohabitation agreement to preserve separate assets

Cohabitation agreement to preserve separate assets

This agreement has been drawn to meet the needs of two people living in a de facto situation who are contributing to the finances of the relationship on a more or lass equal basis, it is therefore most applicable when both parties are earning income. The agreement does not take account of the concept of "services" to the relationship such as the situation where one of the parties acts as the homemaker perhaps attending to the needs of children of the relationship and thereby not earning income. It records the assets of parties to the agreement as at the commencement of the relationship and sets out a formula for distribution of these assets upon termination of the relationship. The agreement is binding on the parties but is subject to the judicial discretion conferred by section 285 of the Property Law Act (Vic) which provides that the court may have regard to any written agreement entered into by the de facto partners.