Legal Basis
Unlike marriage, cohabitation is not regulated by law in Switzerland. Depending on the circumstances, general civil law provisions may apply (e.g. Art. 530 et seq. of the Swiss Code of Obligations). However, these do not offer the level of security desired. For this reason, it is advisable to draw up a cohabitation agreement.
Cohabitation Agreement
Entering into a cohabitation agreement is particularly sensible when the parties have children together, purchase property jointly, or share other assets and financial obligations. Within the limits of the law, the partners are free to design the agreement as they see fit.
Typical contents of such a contract include the allocation of household costs, matters relating to children and child maintenance, as well as potential personal maintenance contributions in the event of separation. Rules on the division of assets can also be included. It is also advisable to make arrangements regarding the rental agreement, cost sharing associated with it, and the consequences for the tenancy in the event of a separation.
Maintenance Obligations and Pension Provision
Spouses are legally obliged to support each other (Arts. 159 and 163 Swiss Civil Code). Following a divorce, there may also be a claim to post-marital maintenance if certain conditions are met (Art. 125 Swiss Civil Code). In a cohabitation, however, there is no entitlement to mutual maintenance. Only the obligation to support joint children applies, regardless of the parents’ marital status.
Furthermore, in the event of a separation, there is no division of matrimonial property or pension equalisation as there would be in a divorce. This can be financially disadvantageous, particularly if one partner has reduced their employment to take care of the household or children. Such individuals often have very little savings or pension assets. Gaps in the first and second pillars of the pension system can lead to significant financial difficulties in old age. It is therefore advisable to take long-term pension planning into account when organising the division of roles.
Joint Purchase of Property
If cohabiting partners purchase property together, it should be clearly defined who has financed which share of the property. Agreements on how to divide any potential increase in value are also recommended to avoid later disputes.
Insurance and Inheritance Law
In the event of the death of a spouse, the surviving spouse may under certain circumstances receive benefits from the state pension scheme (AHV), occupational pension scheme or accident insurance (e.g. widow’s pension). In the event of the death of a cohabiting partner, there is no automatic entitlement to benefits from the AHV, occupational pension, or accident insurance. Couples should therefore clarify at an early stage with the relevant pension and insurance institutions whether and under what conditions benefits may be available, for example depending on the duration of the partnership or based on a declaration of beneficiaries.
Cohabiting partners are also not legal heirs. Any intended benefit can therefore only be arranged through a will or inheritance contract.
Conclusion
Living in or ending a cohabitation can have legal consequences in various areas. As the law provides few rules on the matter, it is advisable to make appropriate arrangements at an early stage. A cohabitation agreement helps to regulate important matters in a binding way and avoid potential disadvantages. Clear agreements create security for both partners.
If you require support in preparing for entering into or dissolving a cohabitation and addressing potential legal consequences, our experienced attorneys-at-law will be happy to assist you.