Domestic Partnership Agreements
a.k.a Cohabitation Agreements
Texas does not recognize a legal relationship between certain couples. However, those couples may, within certain boundaries, enter into a contractual relationship to define certain rights and responsibilities of each partner in the event of the demise of the relationship. Such agreement may define the assets and debts that each partner brings into the relationship. It may also address how to handle property jointly acquired during the relationship. It should define and address how to handle debts incurred during the relationship, especially if one partner has greater ability to borrow money than the other partner, but both intend to actually pay the debt.
If the partners intend to buy a house or other major asset together, the agreement should address how much each partner will own of the asset. This is especially true if one partner will pay for a greater share of the asset than the other partner. Also, the agreement should address how to handle “sweat equity” that one partner may put in, even if his or her financial contribution may be less.