Cohabitation Agreement for Tenant-Owned Apartments: Protecting Your Investment

Drafting a cohabitation agreement for tenant-owned apartments is essential for anyone moving in with a partner in Sweden. Many couples mistakenly believe the Cohabitation Act protects their individual investments, but without a written agreement, the person who paid the largest down payment risks losing significant capital if the relationship ends.

Why a Cohabitation Agreement is Essential

Under Swedish law, a property purchased for shared use is considered joint property, regardless of who paid the down payment. This means that in the event of a separation, the value of the apartment is divided equally. Creating a cohabitation agreement for tenant-owned apartments allows you to override these default rules and protect your specific financial contributions.

Step 1: Document Your Contributions

Start by listing all financial inputs, including down payments and renovation costs. Clarity is key to avoiding disputes later.

Step 2: Understand Asset Division

Know that without an agreement, the law mandates an equal split of the apartment's net value. This is often unfair if one partner contributed significantly more to the purchase price.

Step 3: Draft the Agreement

Define clearly which assets are excluded from the division of property. You can specify that the apartment remains the sole property of the buyer or that the initial down payment must be returned first.

Step 4: Use a Reliable Template

While you can use a standard template, ensure it is legally sound and covers your specific situation.

Step 5: Sign and Witness

For the agreement to be valid, both partners must sign it in the presence of two witnesses. Keep the original in a safe place.

FAQ

What happens without an agreement?

The default rules of the Cohabitation Act apply, meaning the apartment's value is split 50/50.

Can we update the agreement?

Yes, you can draft a new agreement at any time if both parties agree to the changes.

Do we need a lawyer?

If your financial situation is straightforward, a well-drafted template is usually sufficient. However, for complex assets, consulting a legal professional is recommended.