Cohabitation Agreements Between Unmarried Couples.

Unmarried Couples and Cohabitation AgreementsWhat do I need to consider if my partner and I want to move in together?

If you and your significant other want to reside together and are not married, you should consider entering into a Cohabitation Agreement.  Cohabitation Agreements are particularly important if you or your partner intend to purchase a home, vehicle or similar assets.  If there is a written agreement on how to divide assets and liabilities upon the termination of the relationship, it will help avoid court involvement if the relationship ends.  A Cohabitation Agreement should govern the division of assets and liabilities if your relationship terminates.  A Cohabitation Agreement can avoid unnecessary litigation and additional stress should your relationship end.

Can the court divide my and my partner’s assets and liabilities if our relationship terminates?

If unmarried couples choose to live together, the court may become involved if the relationship ends and make decisions about how your assets and liabilities should be divided.  In Beal and Beal, 282 Or. 115, 577 (1978), the Oregon Supreme Court stated that “courts, when dealing with the property disputes of a man and a woman who have been living together in a nonmarital domestic relationship, should distribute the property based upon the express or implied intent of those parties.” In Beal, the court stated that, if there is sufficient evidence of an implied (or oral) agreement in the absence of a written agreement, the court shall distribute property by implementing the established intent of the parties.  Id. at 122 (emphasis added).

A written agreement is the best way to avoid court involvement if the relationship ends.  Cohabitation Agreements can enable you and your partner to establish a written agreement demonstrating your intent regarding both your jointly and individually held assets and liabilities.  The Cohabitation Agreement should also address those assets and liabilities that may accumulate during the cohabitation relationship.  The Agreement should address your and your partner’s intent about how those assets and liabilities should be divided.

What if the property was purchased during our relationship but my name is not on the property?

The court may divide assets and liabilities regardless of whether title to the property is held in one party’s sole name or title is jointly held.

What steps do I take if my relationship ends and I need the court to divide our assets and liabilities?

The first step should be to find out if you and your former partner can mediate an equitable agreement without court involvement.  If mediation is unsuccessful, you can file a petition requesting the court to divide your and your partner’s assets and liabilities.  The court will give the other party the opportunity to file a Response to the Petition.  The court will then schedule a date for trial.  If there is no implied or oral agreement regarding the division of the property, the focus of the trial will be proving the parties’ intent with regard to each asset and liability.  As the Oregon Supreme Court stated in Beal, if there is no written, oral or implied agreement, the court must look at the intent of the parties to determine how property should be divided.  This often requires an extensive hearing during which evidence is presented to assist the court in determining the parties’ intent with regard to each asset.  A court’s involvement to divide assets and liabilities after the conclusion of a relationship is a stressful, time-consuming and costly endeavor.  A Cohabitation Agreement can help avoid unnecessary and costly litigation.

Before you decide whether to cohabit with your significant other, please contact one of our attorneys to help determine whether Cohabitation Agreements are right for your situation.  If you already cohabited with your significant other and that relationship may end, please contact our office to consult with one of our attorneys to learn your rights with regard to the division of assets and liabilities resulting from the breakdown of the relationship.

By Annalise M. Lang