Agreement
This
agreement is made on _____________, between ______________________
("<<one>>") and ____________________
("<<two>>").
Recitals
<<one>>
and <<two>> desire to live together under the terms of this
Agreement.
<<one>>
and <<two>> are not married, but are engaged to be married. It is expected that the marriage may not
take place for a year or longer. This
non-marital relationship is referred to in this Agreement as the
"Relationship".
<<one>>
and <<two>> intend this Agreement to continue in effect until
terminated by notice as provided in Paragraph 3 or until their marriage to each
other.
Each of
<<one>> and <<two>> individually owns and possesses
certain separate property, lists of which are attached to and made a part of
this Agreement (respectively, Exhibits <<one>> A and
<<two>> A) (the "Separate Property"). Each of <<one>> and <<two>> has only the liabilities
disclosed in the lists attached (respectively, Exhibits <<one>> B
and <<two>> B).
Each of
<<one>> and <<two>> acknowledges that neither has
played any role in the accumulation of the other's Separate Property.
<<one>>
and <<two>> desire to contract each with the other concerning
matters of financial management during the term of their Relationship (prior to
their contemplated marriage).
<<one>>
and <<two>> have contracted to purchase a residence located at
___________________, _____________, ________ (the "House").
<<one>>
and <<two>> desire to contract with each other concerning matters
relating to the disposition of their respective Separate Property, the House,
and any property which they may acquire after the making of this Agreement in
the event of the death of either or
both of them or the termination of their Relationship prior to their
contemplated marriage.
Now,
therefore, in consideration of the terms and covenants contained in this Agree
ment, it is agreed as follows:
Consideration. The sole consideration for this Agreement is
the Relationship between <<one>> and <<two>> and the
mutual promises and covenants contained in this Agreement.
Financial
Disclosure. Each of <<one>>
and <<two>> affirms that they have fully disclosed to the other all
of their respective income, assets, debts, and liabilities, and each further
represents that each is satisfied that full disclosure has been made and that each enters into this Agreement
with full knowledge of the financial affairs of the other.
Support. Each of <<one>> and
<<two>> agrees that each is physically, emotionally, and
financially capable of providing his or her own support at an appropriate
standard of living. Accordingly, each of <<one>> and
<<two>> accepts full responsibility for his or her own support and agrees that for purposes of this
Agreement neither is entitled to any support from the other now or in the
future by reason of the Relationship, or after termination of their
Relationship by notice as provided in this
Agreement. For purposes of this Agreement, support means expenditures
for food, clothing, shelter, medical care, or other necessities. This provision has no effect after the
marriage of the parties to each other.
Disability. In the event that either of
<<one>> and <<two>> shall become disabled prior to the
termination of this Agreement, the disabled party's Separate Property shall be
spent for that party's support until exhausted and the other party shall
have no obligation to support the
disabled party.
Claims
for Support. Each of
<<one>> and <<two>> waives and relinquishes any claim
against the other for support arising out of their Relationship, whether
denominated "alimony", "maintenance", or otherwise, in the
event of the termination of their
Relationship.
Income
during Relationship. Each of
<<one>> and <<two>> agrees that all the earnings and
accumulations of the other resulting from the other's personal services,
skills, efforts, and work, together with all property acquired or income
derived, shall be the Separate Property
of the other.
Common
Household Expenses. Each of
<<one>> and <<two>> agrees that each will contribute
(a) equally to the payment of all common household expenses, including but not
limited to food, local telephone service and other utilities, joint travel
expenses, and (b) in accordance with
the House Percentage to the payment of all mortgage payments, property
insurance, and maintenance expenses of and improvements to the House.
Joint
Contributions. <<one>> and
<<two>> agree that all items of tangible personal property or real
property purchased or acquired as a result of or through the product of joint
labor, expense, or contribution (physical or monetary) in any degree of
the parties during the term of this
Agreement, shall be deemed to be jointly owned properties of the parties ("Joint
Property"). Each of <<one>> and <<two>> shall own
and possess an undivided interest in all Joint Property in proportion to the
percentage of the purchase price, joint
labor, or other services contributed by that party toward the purchase or
acquisition of each item of Joint Property.
The following are Joint Property:
_____________________.
Title
to Joint Property. <<one>>
and <<two>> shall hold title to all Joint Property (other than the
House, which is dealt with separately in this Agreement) as Joint Tenants with
Right of Survivorship unless otherwise agreed in writing as to any specific item of Joint Property.
Engagement
Ring. <<two>> has given an
engagement ring (the "Ring") to <<one>>. Subject to the terms of this Agreement, the
Ring is the property of <<one>>.
Restriction
On Sale or Encumbrance of the House.
Neither <<one>> nor <<two>> shall exchange,
partition, lease, rent, mortgage, convey by deed of trust, or otherwise
encumber the House or any interest in the House (or any portion thereof), or
directly or indirectly sell, transfer,
or assign any interest in the House to any third party without first obtaining
the written consent of the other party.
General
Waiver of Rights in Separate Property.
Each of <<one>> and <<two>> shall have and
retain at all times the sole and exclusive right to manage and control all
Separate Property the same as if their Relationship and this Agreement did not
exist. Each of <<one>> and
<<two>> shall have and retain at all times the sole and exclusive
right to dispose of any Separate Property by sale, gift, will, or otherwise,
without any involvement or control by the other party, and each of
<<one>> and <<two>>
consents to any such disposition.
Rights
Extend Beyond Termination of This Agreement.
Each of <<one>> and <<two>> acknowledges that
the right of the other to retain, manage, and control all Separate Property
extends not merely for the duration of their Relationship, but additionally
at any termination of the Relationship
or at the death of either of them.
Waiver
of Claims to Separate Property. Each of
<<one>> and <<two>> waives, relinquishes, renounces,
and gives up any legal or equitable claim to the Separate Property of the other
pursuant to any statute or case law now or hereafter existing.
Payment
of Separate Debts and Obligations. Each
of <<one>> and <<two>> shall bear and pay out of her or
his Separate Property without any obligation, liability, or contribution from
the other, the following liabilities (Separate Liabilities):
all debts or obligations, secured or
unsecured, existing as of the date of this Agreement;
all debts, obligations, taxes,
assessments, and expenses at any time incurred, arising, existing, or relating
to the acquisition, ownership, holding, disposition, operation, management, or
administration of any Separate Property;
all expenditures for gifts or
contributions separately made after the date of this Agreement.
Each of
<<one>> and
<<two>> agrees to hold the other harmless from all of her or
his Separate Liabilities (and
any claims arising out of or in connection with any Separate Liabilities). A list of the existing Separate Liabilities
of each of <<one>> and <<two>>
is attached.
Payment
of Common Debts and Obligations. All
debts and obligations which are for the benefit of both <<one>> and
<<two>>, or which directly relate to the upkeep or maintenance of
the House, shall be the common obligation of both <<one>> and
<<two>>.
Voluntary
Contributions. Notwithstanding any
other provision of this Agreement, either of <<one>> or
<<two>> may voluntarily contribute toward the payment of any
separate debt, obligation, tax, assessment, or expense of the other, provided,
however, that no such voluntary payment
shall constitute (a) an agreement to pay any additional amount toward any such
separate debt, obligation, tax, assessment, or expense or (b) an admission that
the payor is under any obligation to make any such payment.
Disposition
of Separate Property to Other Party. Notwithstanding any other provision of
this Agreement, either of <<one>> or <<two>> may at any
time, by an appropriate instrument in writing, transfer, give, convey, devise,
or bequeath any Separate Property to
the other. A gift card bearing a
notation of the item given and signed by <<one>> or
<<two>> shall be a sufficient instrument of transfer.
Binding
Agreement. In the event of the
termination of the Relationship between the parties, both <<one>>
and <<two>> acknowledge that this Agreement as to division of
property accumulated by either or both of them during the Relationship is
binding upon them at the time of the
termination of the Relationship. Each
of <<one>> and <<two>> understands that this Agreement
is a binding contract. Each of
<<one>> and <<two>> agrees to be bound by this
Agreement regardless of any future amendment, revision, repeal, or overruling of any statute or case
law.
No
Compensation for Household Chores. Each
of <<one>> and <<two>> agrees that any household,
homemaking, or other domestic labor or services contributed or rendered by
either to the other or to the House shall be deemed to be voluntary and free
services intended to be without
compensation or expectation of monetary reward.
Jointly
Held Property. <<one>> and
<<two>> may from time to time determine that they wish to own
specific items of property (other than the House) as joint tenants with right
of survivorship (the "Joint Property"). All such determinations shall be
memorialized in writing. All
Joint Property shall belong to the surviving joint tenant upon the death of the
other joint tenant during the Relationship.
Disposition
of Joint Property Upon Termination of Agreement. If this Agreement terminates other than by the marriage of the
parties to each other, <<one>> and <<two>> shall
attempt to negotiate the disposition of each item of Joint Property. In the
event that <<one>> and <<two>> are unable to
agree as to the disposition of any item of Joint Property, each of
<<one>> and <<two>> shall appoint an appraiser. The two appraisers shall value each disputed
item. If possible, the appraisers shall
then divide the disputed items into two
groups of approximately equal value and award one to each of <<one>>
and <<two>>. If the
appraisers determine that the disputed items cannot be divided into two groups
of approximately equal value, they may (a) cause any item of disproportionate value to be sold in any reasonable
manner or (b) designate an amount of cash that one of the parties shall pay to
the other to equalize the division. In
the event the appraisers are unable to agree as to an
y
matter, they shall appoint a third
appraiser whose decision shall be final.
Children
in the Relationship.
<<one>> and <<two>> do not intend to have
children during the term of this Agreement.
If a child should be born to or adopted by them during the term of this
Agreement, <<two>> shall execute any document necessary to acknowledge paternity and the parties shall
support the child in accordance with their respective financial abilities during
the child's minority.
Purchase
of the House. <<one>> and
<<two>> have contracted to purchase the House from Centex
Properties of Illinois.
<<one>> and <<two>> have or will contribute to
the down payment and the closing costs in the following percentage:
<<one>> 50%
<<two>> 50%
(collectively,
"House Investment").
<<one>>
and <<two>> shall hold title to the House as joint tenants with
right of survivorship, it being intended by each of them that in the event of
the death of one of them the House shall belong to the survivor.
<<one>>
and <<two>> shall make all payments required under the note and
mortgage on the House (including but not limited to principal and interest,
taxes, utilities, insurance premiums, and maintenance) ("House
Expenses") in the following proportions:
<<one>> 50%
<<two>> 50%
The interest
of <<one>> and
<<two>> in the House shall be in proportion to
their respective
contributions to the
total of House
Investment and House
Expenses (the "House Percentage").
Each of
<<one>> and <<two>> shall have an equal right to the
control, management, income, and use of the residence.
Termination
of the Agreement. This Agreement shall
remain in effect from the date of its execution until the earlier to occur of
(a) the service by <<one>> or <<two>> upon the other of
a written Notice of Termination of the Relationship and this Agreement or (b) the marriage of the parties
to each other.
Effect
of Service of Notice of Termination.
Upon service of a Notice of Termination (a) the Relationship shall
terminate; (b) <<one>> shall return the Ring to
<<two>>, (c) the ______________ shall be divided one to each, and
(d) all joint tenancies between the
parties shall terminate, including but not limited to the joint tenancy with
respect to the House, and the parties shall thereafter be tenants in common
with (i) an undivided one-half interest each in all joint tenancy personal
property and (ii) an undivided interest
in the House of their respective House Percentages. Until the closing of a sale of the interest of one of the parties
in the House to the other or of the House to a third party, all provisions of
this Agreement with respect to payment
of the note and mortgage secured by the House and maintenance of the House
shall remain in full force and effect.
Effect
of Marriage of the Parties to Each Other.
Upon the marriage of the parties to each other this Agreement shall
terminate. The relationship of the parties
shall then be determined by the law relating to married persons or according to
any pre- nuptial agreeement the parties
may make, except that title to the House shall be transferred into tenancy by
the entirety.
Amendment
of This Agreement. This Agreement may
be amended only by a writing signed by both of <<one>> and
<<two>>.
Termination
of the the Relationship; Agreement on Who Gets the House. In the event of the termination of the
Relationship each of the parties shall have a non-exclusive right to purchase
the interest of the other party in the House for the then current market value of the House multiplied by the
seller's House Percentage. If the
parties agree which of them shall purchase the other's interest in the House,
but are unable to agree on a price, the price shall be determined by appraisal
by a single appraiser to be agreed upon
by the parties. If the parties are
unable to agree upon an appraiser, then the price shall be determined by
arbitration in accordance with the then existing rules of the American
Arbitration Association.
Termination
of the the Relationship; Both Parties Want the House. If both parties want to purchase the other's interest in the
House, there shall be an open cry auction and the higher bidder shall be
entitled to purchase the other party's interest at the bid price (i.e., the value of the other party's interest in
the House).
Termination
of the the Relationship; Neither Party Wants to Purchase the Other's Interest
in the House. If neither party wants to
purchase the other's interest in the House, the House shall be listed for sale
with a mutually agreed real estate broker
for sale at the then current market value of the House.
Release
of Seller or Refinance of House. In the
event that one of the parties shall purchase the interest of the other upon
termination of this Agreement, the purchaser shall secure the release of the
seller from any obligation on the existing note and mortgage or shall refinance and pay off the existing note and
mortgage.
Distribution
of Proceeds. In the event of the sale
of the House to a third party, the net proceeds of the sale after payment of
all expenses of sale shall be applied as follows:
to pay all amounts due on the note and
mortgage on the House;
to pay to either party any funds which
the party supplied, advanced, or paid in connection with this Agreement over
and above the amount the party was required to supply, advance, or pay; and
the net proceeds shall be paid to
<<one>> and <<two>> in accordance with their respective
House Percentages.
All items which are normally prorated at a
closing (real estate taxes, utilities,
rent, insurance, etc.), shall be
prorated at the closing.
Household
Chores. <<one>> and
<<two>> agree to divide household chores equitably between them.
Duty of
Good Faith and Fair Dealing. Each of
<<one>> and <<two>> agrees to deal with the other in
good faith and fairly.
Binding
Effect. This Agreement shall be binding
upon and inure to the benefit of <<one>> and <<two>>
and their respective heirs, personal representatives, successors, and assigns.
Voluntary
Agreement. Each of <<one>>
and <<two>> acknowledges that this agreement was voluntarily
executed, with full knowledge and information, that each has had the
opportunity to consult with counsel of their own choice.
No
Waiver. No waiver of any breach or
default of this Agreement will be deemed to be a waiver of any subsequent
breach or default whether of the same, similar, or different nature.
Governing
Law. The parties live in Illinois, the
House is located in Illinois, and Illinois law shall govern this Agreement.
Notices. All notices permitted or required to be
given under this Agreement shall be in writing. Notices may be personally delivered or sent by facsimile or FedEx
or other overnight courier service as follows:
If to <<one>>:
__________________________________
__________________________________
__________________________________
__________________________________
If to <<two>>:
__________________________________
__________________________________
__________________________________
__________________________________
Entire
Agreement. This Agreement represents
the complete agreement of the parties with regard to their Relationship, the
House, and their property. All
agreements, covenants, representations, and warranties, whether oral or
written, express or implied, have been
incorporated in this Agreement. No
other agreements, covenants, representations, or warranties, oral or written,
express or implied, have been made by either <<one>> or
<<two>> to the other with respect to the subject matters of
this Agreement. All prior and contemporaneous conversations,
negotiations, possible and alleged agreements and representations, covenants,
and warranties with respect to the subject matter of this Agreement are waived,
merged into this Agreement, or
superseded by this Agreement.
Interpretation. The titles of paragraphs of this Agreement
are for convenience only and shall not be used to aid in the interpretation of
this Agreement. No provision of this
Agreement shall be construed for or against either <<one>> or
<<two>> because one party
or one party's counsel drafted this Agreement or any provision of it.
Recitals. The recitals are part of this Agreement.
Severability. The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement.
Counterparts. This Agreement may be executed in two or
more counterparts, each of which shall be an original, but all of which shall
constitute one and the same instrument.
Execution
of Documents. Each of
<<one>> and <<two>> shall, upon the request of the
other, or of the other's personal representative, execute, acknowledge, and
deliver any instruments appropriate or necessary to effectuate the intent and
provisions of this Agreement.
IN
WITNESS WHEREOF the parties have signed this Agreement on _______________,
___________.
_______________________________
<<one>>
_______________________________
<<two>>
Signed
and delivered in the presence of:
WITNESSES:
_______________________________
_______________________________
State
of Illinois)
County
of ____)ss:
The
foregoing instrument was acknowledged before me on _____________, by
<<one>> and <<two>>.
_____________________________
Notary
Public
Exhibits