What are the most important questions to ask yourself if you want to live in a cohabiting relationship with peace of mind?
What is cohabitation?
You are cohabiting if you share your life with your partner without being married or in a registered partnership.
This type of cohabitation does not impose any specific constraints on you: you enjoy a great deal of freedom, but it is important to note that you do not have the same rights as those granted to married people or people in a registered partnership.
Have you opted for cohabitation? What are the consequences for you, your partner, your children, your assets, your tax situation, and your pension provision?
The particularities of cohabitation
Unlike marriage, you are legally considered two separate individuals, not a couple. You, therefore, do not have the option of taking your partner's surname, for example. Legally, you are not obliged to help or support your partner. However, the partner's financial situation may sometimes be considered, particularly in social assistance or enforcement proceedings.
Taxation
For tax purposes, you are considered as two separate individuals. Each couple member must, therefore, complete their tax return individually.
Separation
In the event of separation, you are not entitled to a maintenance contribution for yourself, only for the joint children, even if you have reduced or given up your gainful activity. You will also not benefit from the AHV (Old Age and Survivors' Insurance) contributions paid by your former partner during your life together.
Real estate
If your partner buys a house in their own name, you will have no rights to the property. If, on the other hand, you buy a property together, you will have to think about your inheritance.
Estate
When your partner dies, you are not considered a legal heir and do not automatically inherit their property. However, you do have the option of naming each other as beneficiaries in a will. Just so you know, even if a will is drawn up, legal heirs are still entitled to a share of the inheritance, known as the reserved portion. It is also essential to consider the tax implications regarding inheritance. Tax can amount to as much as 50% of inherited wealth, so you are considered two strangers.
Finally, cohabiting partners do not receive an AVS (Assurance vieillesse et survivants) survivor's pension. However, your pension scheme (2nd pillar) may provide compensation for the surviving partner. To find out precisely what your rights are, we recommend contacting your pension fund and remembering to tell your fund about your partner. Even if you have been sharing the same roof for 10 years but have yet to register, benefits will not be paid.
Pension
When you retire, you will each receive 100% of your AVS/AHV pension, unlike married couples or those in a registered partnership, who are entitled to a total pension equivalent to 150% of the maximum pension. You will have no rights to your partner's pension assets in separation or death.
Children
If you are not married to the mother of your child, you can establish the parent-child relationship through the recognition procedure. By applying to have your child recognised, you and the mother can also apply jointly for parental authority. When parental control is joint, you can give the father's name to the joint children.
If you are cohabiting, you can adopt your partner's children.
Cohabitation contract
If you choose not to marry or register your partnership but would like to lay down clear rules for your relationship as a couple, you can draw up a written agreement, also known as a cohabitation contract.
You are welcome to include any points you'd like to clarify, such as the list of assets, the division of living expenses, the care of children, the division of assets, and maintenance contributions in case of separation or life insurance for your partner.
It should be noted that this contract is binding and can be taken to court if necessary.
Cohabiting couples do not enjoy the same social or legal protection as married couples or those in registered partnerships. So, it's essential to discover the options available to protect you and your loved ones.
At Piguet Galland, we help our customers with their life plans, whether getting married, entering a registered partnership, or living with a partner.