This agreement is made on _____________, between ______________________ ("<<one>>") and ____________________ ("<<two>>").
<<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:
(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:
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 _______________, ___________.
Signed and delivered in the presence of:
State of Illinois)
County of ____)ss:
The foregoing instrument was acknowledged before me on _____________, by <<one>> and <<two>>.