Formalizing a relationship

If you wish to make your relationship with your partner official, there are three options. You can marry, enter into a registered partnership, or sign a formal contract known as a cohabitation agreement.

The choice is entirely a matter of personal preference. Nevertheless, you should be aware of the various laws and regulations which apply in each case, because the choice is not purely an emotional one: there are also financial and legal implications. For example, there are certain tax arrangements which apply to married couples, registered partners and partners with a cohabitation agreement, but not automatically to those who are living together without a cohabitation agreement.

It is important for partners to discuss the consequences of taking the next step in their relationship. Which possessions and debts should become joint (‘community’) property, for example, and which are to be excluded? Attention must be devoted to pension arrangements, household costs and many other practical matters.

Although some topics are perhaps more difficult to discuss, doing so is likely to prevent more serious problems at a later date.

We will be pleased to explain the differences between marriage, a registered partnership and a cohabitation agreement in detail. This section presents a brief introduction.

Marriage

Marriage is traditionally the most popular way of formalizing a relationship. Consequently, the law contains many provisions which apply specifically to married partners. For example, spouses are automatically each other’s heirs. Children will receive their share of the estate only when the surviving partner dies. It is possible to make alternative arrangements by means of a Will, and it may be desirable to do so if there is a substantial inheritance to be divided or if there are children from prior relationships.

Unless you enter into a formal prenuptial agreement, you automatically accept the community property regime. There may be a variety of reasons for not wishing to do so. Or perhaps you wish to ensure that the continuity of your business is not jeopardized should the marriage ever break down. If married partners wish to divorce, they must apply to the court and will require the assistance of a notary or attorney.

Registered partnership

A registered partnership is formalized by a civil registrar.

The implications of a registered partnership are virtually identical to those of marriage, but far removed from those of a cohabitation agreement.

One difference between registered partnership and marriage is that the couple need not go to court if they wish to separate, unless there are children under the age of eighteen. Registered partners with underage children who wish to terminate their registered partnership must apply to the court and will require the assistance of a notary or attorney. Registered partners without underage children can simply ask a notary or attorney to terminate their registered partnership with the civil registry.

Another difference is that only the biological mother is automatically assumed to be the legal parent of a child born during the registered partnership. The partners must apply to have the other parent recognized as such.

Cohabitation agreement

There are very few legal requirements governing a relationship between partners who have not entered into a formal cohabitation agreement. The rules that do exist are almost entirely in connection with tax matters. In a cohabitation agreement the partners can make arrangements with regard to various matters, such as the division of household costs or what is to happen if the relationship ends. Apart from these ‘internal’ agreements, a notarial cohabitation agreement confers certain other benefits, such as entitlement to the substantial inheritance tax exemption threshold of over € 660,000.

In addition, most pension funds demand to see a formal cohabitation agreement if you wish to nominate your partner as the beneficiary of a partner’s pension.

Married couples and registered partners will automatically inherit each other’s estate unless they provide differently in a Will. This does not apply in the case of cohabiting partners, who must make a Will which expressly names the surviving partner as a beneficiary. If the Will is accompanied by a formal cohabitation agreement which includes a survivorship clause, it is possible to ensure that the statutory share of the estate to which children are entitled is not immediately payable on the death of either partner.

Please contact us for further information and advice about the consequences of marriage or a registered partnership, or entering into a prenuptial agreement, a registered partnership agreement or a cohabitation agreement.