Legal Considerations for Cohabiting Couples During Property Division

How is Property Legally Divided When a Cohabiting Couple Splits Up?

In California, it’s important to have a cohabitation agreement in writing that protects you if your cohabitation arrangement breaks up. A Campbell property division lawyer can help couples prepare and establish a legally enforceable, personalized cohabitation agreement.

The rights of cohabiting partners are a concern for lawmakers, courts, and attorneys across the U.S. In California, when two adults share a home in a cohabitation arrangement, unless there is an enforceable legal document, those parties may be placing their assets and property at risk.

Under the law, how is property divided when a cohabiting couple breaks up in California? What is palimony? What steps can you take to ensure that your assets and property are protected in a cohabitation arrangement, and when will you need to contact a Campbell family law attorney?

Are Common-Law Marriages Recognized in California?

There’s a widespread misconception that a couple is married under common law if the partners live together for a particular length of time – seven years, for instance. This isn’t true anywhere in the United States.

California does not recognize or allow for common-law marriage. If you live with someone who is not your spouse, and you split up in four days or forty years, it’s the same result. Not knowing your rights – or actually, your lack of rights when you’re cohabiting – can cost you dearly.

After a break-up, without a formal agreement that protects you, you could end up with nothing after years of sacrifice. If children are involved, the court will protect their best interests until they reach adulthood, but that will be the state’s only role.

What is a Cohabitation Agreement?

A cohabitation agreement or cohabitation contract is comparable in some ways to a prenuptial agreement. A cohabitation agreement should address the key issues in a relationship – and particularly the property questions – with exactness and specificity.

A cohabitation agreement should spell out what will happen to the home, vehicles, bank accounts, and other assets and properties. It should also specify exactly what, if any, palimony or support will be owed to one partner by the other after a break-up.

Why is Preparing a Cohabitation Agreement So Important?

If partners can agree on these questions and prepare a cohabitation agreement with help from a Campbell property division lawyer, they can save time, money, and perhaps a great deal of contention and grief.

However, simply presuming that “things will work out” can leave you in real economic distress and without legal recourse if a break-up happens. Without a cohabitation agreement that’s in writing and enforceable, it may be quite difficult to win a “palimony” award after a split.

What is Palimony?

Although it is not a legal term, the concept of palimony was established in California in 1976 in the Marvin v. Marvin case. In that case, the California Supreme Court held that cohabitation contracts may be considered and enforced by California’s courts.

However, a California court may also consider a support or property division claim if there is any evidence of an oral or implied agreement between the parties regarding financial support or sharing of assets.

Palimony cases are fact-specific. Not all palimony claims prevail, and it’s important to understand that California law establishes no automatic entitlement to palimony.

What is Considered in a Palimony Dispute?

When a palimony claim comes before a California court, the court will take into account the length of the relationship, each partner’s financial contributions, and any implicit or explicit agreements regarding property sharing or support payments.

It’s always best, however, to have a formal, legal cohabitation agreement in writing from the beginning. Otherwise, a palimony claim may boil down to one person’s word against the other’s, and you won’t have a strong claim.

In some cases, however, a final palimony arrangement that is acceptable to both parties can be worked out through mediation, and a courtroom trial can be avoided. Your Campbell family law attorney will explain your options and fight for the best possible resolution of your claim.

Who Has the Burden of Proof in a Palimony Dispute?

After a cohabitation arrangement breaks up, each of the following must be considered if you bring a palimony claim for your share of the property and/or for support payments:

1. Cohabitation: Palimony claims apply only to partners who have been living in a cohabitation arrangement.
2. Evidence: You must offer evidence in support of your claim: witnesses, legal documents, and financial records, for example.

The burden of proof in a palimony case is on the partner who is seeking property and/or payments. That partner’s marketable skills and ability to work will also be considered by the court.

What Else Should You Know About Cohabitation Agreements?

Take the steps now to prepare for the future. Until the law changes, if you are living in a cohabitation arrangement, you’ll have to initiate those steps or take them with your partner. The right partner will realize that signing a cohabitation agreement is the fair and proper thing to do.

A cohabitation agreement is also wise and essential for protecting your future. A contract that spells out expectations and living arrangements allows cohabiting couples to define their financial obligations and rights in advance.

Putting a cohabitation agreement in place in advance has the additional benefit of helping couples avoid lengthy, hostile, and costly legal disputes if and when the relationship comes to an end.

Who Should Prepare Your Cohabitation Contract or Handle Your Palimony Claim?

Your legal questions about cohabitation, palimony, and your rights can be answered by a Santa Clara County family law attorney at Hepner & Pagan. We prepare cohabitation agreements and fight aggressively and effectively for our clients who bring palimony claims.

Even if you have a cohabitation agreement, you’ll need some legal guidance and advice if and when you need to enforce that agreement. Call Hepner & Pagan for the help you need. We also handle divorces, child custody disputes, and paternity claims, and we prepare prenuptial and postnuptial agreements for our clients in Santa Clara County and throughout the San Jose area.

Hepner & Pagan will ensure that you are treated fairly by the court and that you receive what is rightfully and legally yours. Let us prepare your cohabitation agreement or represent your palimony claim. You can schedule a consultation by calling Hepner & Pagan at 408-688-9153.