Episode•November 16, 2023•29 min

Unmarried Couple Living Together? Here's What You Should Have - A Cohabitation Agreement! | Ep. 280

Are you considering living with your partner but worried about the legal implications of cohabiting? Kimberlee Davis has got your back! In this informative episode, she explains exactly what a cohabitation agreement is and how it can help protect both parties in case of a separation. Learn why it’s so important to define each individual’s money language and ownership of assets before taking such an important step. Listen now to learn everything you need to know about creating a secure and equitable cohabitation agreement - essential knowledge for any unmarried couple living together! About Our Guest Kimberlee Davis, affectionately known as the Fiscal Feminist, is an influential figure in the world of finance and empowerment. Born and raised in the United States, Kimberlee's journey is one that demonstrates resilience, determination, and a strong commitment to advocating for financial literacy among women. Professionally, Kimberlee has built an impressive career that spans over three decades. Her experience in the corporate world started as a corporate securities lawyer and eventually led her to become a Partner and Senior Managing Director at The Bahnsen Group, a wealth management firm. Here, Kimberlee's dedication to financial literacy took center stage as she began to focus on women's financial issues, hence the birth of her persona as the Fiscal Feminist. Connect with Kimberlee Visit her website: https://www.fiscalfeminist.com/ Instagram: @thefiscalfeminist Connect with Tiffany Visit our website: https://moneytalkwitht.com Facebook: Money Talk With Tiff Twitter: @moneytalkwitht Instagram: @moneytalkwitht LinkedIn: Tiffany Grant Additional Links & Resources The Fiscal Feminist book This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

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Key Takeaways

1
Cohabitation agreements protect unmarried couples by defining asset ownership, debt responsibility, and support before conflicts arise
Unmarried couples lack the legal protections married couples have regarding property rights
Only a few states recognize common law marriage; Illinois does not enforce cohabitation agreements
Agreements can address furniture, cars, houses, bank accounts, insurance, and medical directives
2
Discussing money personalities and values before moving in prevents future financial disputes
82% of couples split due to disagreements about spending, not lack of money
Different money personalities include compulsive spender, saver, worrier, and moneymaker
Understanding each partner's approach to debt, joint accounts, and expenses is essential
3
Start the cohabitation agreement conversation by framing it as a way to strengthen the relationship
Approach as an exploratory discussion: "How do you feel about money and long-term goals?"
Emphasize transparency and building net worth together rather than fear of breakup
Online tools now allow couples to create agreements without hiring lawyers
4
Living longer means financial planning conversations have lifelong consequences
Many people now live into their 90s, making early money decisions critical
Kimberlee's divorce at 53 required rebuilding her career and finances from scratch
Unaddressed financial issues can derail retirement security decades later
5
Cohabitation agreements should address inheritance, debts, and support payments explicitly
Surviving partners have no automatic rights to property without a will, trust, or agreement
Joint tenants vs. tenants in common determines what happens to a house if one partner dies
Support/palimony expectations should be clearly defined or waived in the agreement

Intro

Tiffany Grant welcomes Kimberlee Davis (The Fiscal Feminist) to discuss cohabitation agreements—an essential but often overlooked legal tool for unmarried couples living together.
Kimberlee Davis is a wealth manager, Partner and Senior Managing Director at The Bahnsen Group, and author of The Fiscal Feminist. With over 30 years of experience, she advocates for women's financial literacy and premarital financial planning.

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– What Is a Cohabitation Agreement?

Kimberlee explains that cohabitation agreements function like prenups for unmarried couples. They define how assets, debts, and living arrangements will be handled if the relationship ends. Without such an agreement, unmarried partners have few legal protections compared to married couples.

Unmarried couples aren't afforded the same legal protections that married couples are when it comes to their property rights.
– Kimberlee Davis

– Key Elements to Include in the Agreement

The agreement should cover: specific asset ownership (e.g., furniture, cars), how income and expenses are shared, joint bank accounts, new asset acquisition, debt responsibility, support payments, and what happens if one partner dies. It should also specify ownership structures like joint tenants vs. tenants in common for real estate.

Asset ownership and distribution upon breakup
Debt allocation and responsibility
Support/palimony terms or waiver
Inheritance rights and medical directives

– How to Start the Conversation

Kimberlee advises framing the discussion around relationship longevity and financial transparency rather than fear. Start with exploratory questions about money values, long-term goals, and attitudes toward debt. She emphasizes that avoiding the conversation can lead to resentment or financial disaster later.

If you can't talk to your partner about money and property ownership and finances... then what kind of relationship do you have?
– Kimberlee Davis

– Long-Term Impact and Practical Options

Kimberlee shares her personal story of rebuilding after divorce at 53 and stresses that financial decisions made while cohabiting affect retirement security. She notes that online tools now make creating agreements accessible and affordable without necessarily needing lawyers, though legal counsel is ideal.

– Applicability to Roommates and Final Advice

While primarily designed for romantic partners, cohabitation agreements can benefit any cohabitants who might commingle finances or assets. Kimberlee closes by encouraging listeners not to let the logistics deter them—the conversation itself is the critical first step.

Books Mentioned

The Fiscal Feminist: A Financial Wake-Up Call for Women by Kimberlee Davis

Resources

Fiscal Feminist Website
Fiscal Feminist Podcast
Online Cohabitation Agreement Toolstool

Topics

Cohabitation AgreementsUnmarried CouplesFinancial PlanningMoney ConversationsPrenupsAsset ProtectionDebt ManagementRelationship FinancesWomen's Financial LiteracyEstate Planning