There are plenty of milestones in your life that need proper documentation; this means you’ll, for example, need to know a cohabitation agreement’s legal requirements. In this post, we’ll look at these significant moments and the specific forms and documents they’ll require.
Cohabitation
Living together is an incredible step forward for a relationship, and you might be skeptical about putting together a cohabitation agreement. However, these documents have plenty of practical benefits. Here’s a quick rundown of what this agreement needs to work:
- It includes a complete and honest disclosure of each party’s assets
- It clarifies next of kin rights if one party has a medical emergency
- It simplifies custody and reaffirms a desire to act in the child’s interests
- It lets you keep certain assets for children outside the relationship
- It allows for the equitable distribution of assets if the relationship ends
- It sets out how both parties plan to contribute to the home financially
A cohabitation agreement is ultimately not much different from a prenup; it simply formalizes the conversations you and your partner should already have when you live together.
Marriage
On the topic of prenuptial agreements, these documents are essential for protecting your (and your partner’s) property. They’re legal in all US states, though only 28 have signed the Uniform Premarital Agreement Act – this ensures your prenup stays legally binding across state lines.
Here are some standard prenuptial clauses worth considering:
- Asset division: A prenup specifies who receives certain assets in a divorce, such as a house, bank account, or anything else.
- Spousal support: You can also use a prenup to set out how much alimony your partner will receive or if you agree to waive it.
- Debts: With a prenup, you can clarify each party’s debts and ensure the other spouse is not (and never will be) responsible for them.
Once you marry, you could even arrange a postnuptial agreement, which broadly functions the same as a prenuptial one. Either document helps if you feel anxious about your belongings and the possibility that they might not be yours forever.
Starting a Family
Having a child can bring a lot of joy into your life – but it might also mean a lot of paperwork. For example, you’ll need to apply for your child’s birth certificate as soon as it’s ready. Without this, you won’t be able to enroll them in school or set up their Social Security number.
Raising the child might require a formal parenting plan, especially if you share custody with an ex-partner. You may also need to keep travel consent forms handy in case they have to go on a school trip or another journey without you.
Buying Property
Property sales are incredibly complex and usually require several types of paperwork, such as a real estate purchase agreement that sets the transaction’s terms and conditions. Alternatively, you might use a rent-to-own contract to buy the property after a long-term lease.
You’ll also need to choose between the two main types of deed, namely:
- A warranty deed proves a seller’s right to sell the property while guaranteeing no alternative future claims on its ownership.
- A quitclaim deed has no such guarantees – only use these if you’re buying from a family member or someone you trust.
You might even use a special warranty deed, which has a limited warranty, meaning it can only speak for the seller’s time owning the property.
You’ll also need proof that you can afford the property, usually via a mortgage. This will typically involve showing a pre-approval letter from the bank. These documents show that the bank has confidence in your ability to repay a loan, effectively guaranteeing their approval.
End-of-Life Planning
Setting up your estate and how you’ll divide your assets among your family is never easy. You’ll need ample documentation throughout the entire process. A last will and testament is the best place to start. Here’s why you need a will, even if it might not take effect for decades:
- It clearly shows your preferences and ensures your assets go to the right people
- You and your loved ones will have peace of mind in case of a sudden accident
- It encourages you to think more deeply about who you want as your beneficiaries
- You won’t have to worry about your assets being held in limbo through probate
- It gives you a chance to choose your executor and tell them your preferences
- You can pre-emptively designate guardians for any minor children in your care
Writing a will is itself a massive milestone – one where you take charge of your assets and make sure they go to the right people.
Final Thoughts
You should use a document template website to fulfill each form’s major requirements. This way, you can approach any milestone or significant life change with confidence and guarantee your documents are legally binding.