Cohabitating Couples & the Law

Cohabiting couples have legal considerations just like married couples.

Couples choose to live together rather than get married for various reasons. One of these reasons is they do not want to deal with the legalities of marriage. However, it is very important for cohabiting (also often referred to as cohabitating) couples to take strides to protect their property should they choose to no longer live together.

Marvin v. Marvin

The most famous legal case involving cohabitation is the case of Lee and Michelle Triola Marvin. During the court case, which took place in California, Michelle claimed that when they decided to live together, they decided to share everything equally and that to earn her half she would perform services like cooking, cleaning, etc. The case drug on for five years and eventually ruled in the favor of Lee. The court finding was that an oral agreement held as much weight as a written one if it could be proven. In this case, it could not be proven.

Palimony

During the Marvin case, journalists invented the term "palimony." It is a reference to alimony and is used when referring to cohabiting couples who split up and one party demands property rights and other rights that mimic the rights of alimony. "Palimony" is a common term when talking about cohabitation break-ups.

Cohabitation Agreement

The smartest thing to do when cohabiting with someone is for both parties to sign a Cohabitation Agreement. This agreement is made as people move in together and outlines everything from possessions to debts. It is made to protect both parties in case of a break-up. These documents differ from state to state but all cover the same concepts. A lawyer can be hired to draft one of these documents, or the documents can be found online.

Buying a House

Some cohabiting couples decide to buy a house together. A Property Agreement should be signed in this case because of the magnitude of this financial commitment. One thing to consider is whether the house is owned 50-50. If it is not, find a way for the person with the smaller percentage to make it up (i.e., by remodeling, making larger monthly mortgage payments, etc.). Who is listed on the deed as the owner could cause a problem if that person dies and the other person is not a co-owner, or "joint tenants with rights of ownership." Who will get the house in case of a break-up is another consideration to put in the Agreement. Lastly, one person can buy out the other's share. If this is going to happen, then the specifics should appear in the Agreement.

Death

Should one of the partners pass away and the other is not on house deeds or in wills and trusts, then the other partner could be left in the cold. The only sure way to make sure the other person is taken care of is to leave a specific will detailing what the person will inherit from the deceased (i.e., the house, cars, money, etc.).

References

• Nolo: Property Rights of Unmarried Couples
• LawDepot.com: Cohabitation Agreement
• FindLaw: Lessons Learned the Hard Way: Cohabitation and the Law