More and more, couples are choosing to live together without getting married. While this can provide flexibility and freedom, it can create some legal uncertainty when it comes to your property and finances. If you are living with your partner without being married, you need to understand cohabitation & property agreements for unmarried couples in Washington.
Many unmarried couples make large financial decisions or commingle assets, such as by purchasing a home, opening joint accounts, or sharing living expenses, which can become complicated when it comes to how property is divided for unmarried couples without a formal agreement. Creating agreements early on helps clarify what assets are considered community and separate property. This is also important in the case of a divorce, as Washington’s cohabitation laws do not provide as much structure compared to divorce laws.
Understanding Cohabitation in Washington
Cohabitation involves living with a partner without being legally married. About 20.3 million people age 15 and up cohabitate in the United States. Cohabitation is becoming more popular, with the share of cohabitating couples increasing from 3.7% to 9.1% between 1996 and 2023
While cohabitation may seem like the simpler option compared to marriage, it does make it difficult when handling finances and property. Partners who are cohabitating aren’t protected by Washington’s divorce laws, which state that property acquired during the marriage should be divided equitably during a divorce. This means that during a breakup, it can be difficult to determine ownership and figure out how to divide assets should the relationship end.
Why You Should Consider a Cohabitation & Property Agreement
Creating an agreement surrounding your cohabitation and property ownership is a good idea for several reasons. Some of the benefits of these documents include:
- Establishing a property division strategy if the relationship should end
- Classifying property as separate property
- Outlining agreements on rental or mortgage costs
- Deciding what income remains separate versus goes to joint accounts or joint expenses
- Deciding whether credit cards are held separately or jointly
One of the most common types of agreements outlined in Washington’s cohabitation laws is a living-together contract (LTC), also known as a cohabitation contract. An LTC allows you to address several different financial and personal decisions without being married, while offering you the flexibility to reach an agreement on these issues without the court’s involvement.
Speaking with a Washington family attorney should be your first step in creating an LTC, as they are serious legal documents that should be customized to your personal needs.
How a Living-Together Contract Can Provide Financial Safety
The primary purpose of an LTC is to provide an outline for how to handle your property and finances in the event of a separation. This includes designating certain assets as separate property, outlining who keeps what items, what happens to the primary residence, and how debts are divided. It is important to make these decisions carefully, as they can affect your financial stability after a breakup.
An LTC can also be used for outlining financial decisions during the relationship. This could mean deciding who pays for what, how certain expenses are divided, or whether certain financial accounts are kept separate or jointly owned.
It is important to hire a family lawyer who can explain the property agreement laws and help you create a fair plan for you and your partner’s property. A lawyer can help you accurately value assets and debts, create a balanced plan for expenses, and create a property division plan that leaves you with enough financial support after a breakup without saddling you with unfair debts.
Using a Living Together Contract for Personal and Family Decisions
Some couples also wish to include decisions surrounding household, family, and personal responsibilities in an LTC. This can include issues of childcare responsibilities or household management.
If you want your LTC to reflect both your financial and household decisions, it is particularly important to work with a family attorney in Washington. An attorney can explain the strict requirements for having multiple contracts while keeping them legally enforceable.
When to Establish a Committed Intimate Relationship
It is a good idea to write an LTC as soon as you decide to cohabitate, though some couples may also explore establishing a committed intimate relationship as another legal option. This could be before purchasing a home together, moving into a shared residence, or combining finances. In general, the earlier you establish these agreements, the better.
As a relationship progresses, you and your partner are likely to make more joint decisions and acquire more property. This further intertwines your financial assets and can make it difficult to determine who owns what. Creating an LTC early can provide clarity later on, preventing you from untangling these financial questions after the fact.
Many couples also find it preferable to establish an LTC or other property division plan early because it allows them to reach an agreement amicably. During a breakup, it can be difficult to create objective, equitable financial agreements. Making important decisions during the heightened emotional period of a breakup may also leave you more prone to major conflicts.
Reasons You Should Hire a Family Lawyer When Creating These Agreements
Cohabitation and property agreement laws have strict requirements regarding how contracts, such as LTCs, must be written and notarized. A Washington family attorney can make sure your agreements adhere to these requirements and are clearly written. If certain legal requirements are overlooked, your agreement may not be enforceable.
Furthermore, these contracts should be highly customized to your and your partner’s situation. Each couple has unique property, finances, and personal values to consider. For example, 16% of unmarried householder couples have joint accounts, while many choose not to share financial accounts at all. A lawyer can analyze your personal goals and financial situation, helping you craft a contract that reflects your specific needs.
Reach Out to Chvatal King Cantu Law to Learn More
At Chvatal King Cantu Law, you can work with a Washington family attorney with over 35 years of experience protecting the interests of unmarried couples. We have experience writing clear, valid contracts, as well as representing our clients in the local Superior Court, such as the Benton County Superior Court at 7122 W. Okanogan Pl, Kennewick.
We are proud to provide personal guidance, so you can feel confident that your agreements are tailored to your long-term goals when it comes to finances, property, and household life. Contact Chvatal King Cantu Law to speak with an experienced lawyer about your options as an unmarried couple.
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