What Happens To Property After A Split Between Cohabiting Couples?
Cohabiting couples are two individuals who stay together under one roof but are not married. Today it has become a trend to stay with each other before getting married and an increasing number of couples are following this trend. During cohabiting, couples accumulate property that is jointly owned by both of them. However, during a split, they have difficulty dividing the property. Property division is a headache even for married couples and can become confusing. Below are some of the factors that help property division for cohabiting couples.
Common law marriage is not recognized by California which means that cohabiting couples do not enjoy the same rights as married couples. Cohabiting individuals are however entitled to palimony during a split. Palimony is the division of assets and finances between unmarried and cohabiting couples. Palimony is not part of the state law and depends mostly on an agreement made by the couples staying together. For palimony to become effective, the partner who made the agreement must prove that before living together some sort of agreement was made between the two regarding property division.
Cohabitation property agreement
Creating a cohabitation property agreement is a good idea especially in the beginning of a relationship. This provides a proof that a certain arrangement was made prior to marriage. In such circumstances, none of the individuals in the relationship can make a false claim related to property division. Usually, cohabitation agreements include details about specific assets and to whom do they belong. It also includes bank account, credit card and insurance details. The agreement is a record of property discussions that were made when both individuals were free of tension and stress.
Liability of debts
Unlike in marriage, where an individual can take care of his/her partners debts, unmarried partners are not necessarily responsible for each other’s debt. But if they hold a joint account or if one is the guarantor for the other, debts can be taken care by the other spouse. In most cases, each individual is responsible for their own debts.
Property division is an important issue during divorce and for unmarried couple things can become complicated when they lack proper understanding. There are palimony agreements and cohabitation property agreements that can be used to protect asset and property division. Debts are usually taken acre by each individual unless it is a question of joint account.
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