LEGAL WRITES: SHOW ME THE RECEIPTS

From the desk of

Dana Brooks

DANA@FASIGBROOKS.COM

SHOW ME THE RECEIPTS!

February is the time of year when many couples contemplate taking their relationship to the next level. Whether moving in together, buying a home, or adopting a pet, 14% of couples today have decided to take a future life with someone for a test drive before signing on the dotted line. Given the dismal statistics on marriage, with 50% of first-time, 67% of secondtime, and 74% of third-time marriages ending in divorce, couples are smart to take their time trying out different living arrangements before taking the emotionally and financially significant “leap.”

Although marriage has its negatives, it does come with built-in financial protections for the distribution of assets typically not available to an unmarried couple. Even when the parties enter into a cohabitation agreement that only controls the law between the two parties, it does not change how the law or other contracts treat non-marital real or personal property.

If the parties both enter into a lease, the rights and obligations are well defined. If one party has a lease, marries, and the spouse moves in, that is now their marital home, which provides additional rights to both parties. The spouse whose name is on the lease would not simply be able to kick the other party out of the marital home. together, they can own it as a tenancy by the entireties, meaning they both own the entire home. If they were to divorce, the court could force the sale of the house and equitable distribution of the proceeds. When two unmarried people buy a home together, they cannot own it as a married couple and instead typically own it as tenants in common. It is often unclear and disputed what percentage each party holds or whether the court could force the sale of the property should one party want out of the arrangement. Anything unclear is usually litigated, often at great expense and delay.

Finally, when it comes to paying for and distributing personal property, like the furniture you brought into the relationship but then shared the entire two years you were together. Or the washer and dryer you bought in your name because he had bad credit but promised to make payments on, or whether he owes you for the value of the car you traded in for a down payment on his new car. All those things must be proven because there is no default legal position defining them as marital liabilities and assets. So if you start playing house together and things eventually go sour, but you want to be sure to get your fair share of what you’ve invested, take the time to consult with an experienced attorney and protect yourself with a cohabitation agreement. Otherwise, be ready when the judge says, “Show me the receipts!!”