Although a common misconception, common law marriages in California do not exist. In fact, the state stopped recognizing this type of marriage in 1895. However, an option exists for California couples seeking legal protections in their relationships when they have no intention of getting married – a cohabitation agreement.
What are cohabitation agreements in California?
Unmarried California couples, who do not intend to get marriage, can use a cohabitation agreement to outline their financial responsibility to each other over the course of the relationship and after a potential breakup.
Aside from financial obligations, cohabitation agreements deal with property division in the event of a split.
California’s community property laws only apply to married couples. If unmarried partners both make mortgage payments but only one partner’s name is on the mortgage or property title, the person not listed would have no automatic legal claim to financial compensation for what they have paid in the event of a breakup.
Cohabitation agreements can mimic community property laws by identifying the specific property that belongs to each party, including how the court splits joint property and how individual assets remain separate.
These contracts for cohabitation are not just for breakups, they also protect the surviving party if one partner passes away. Aside from the emotional burden of a partner’s death, the financial burden can also be heavy, as unmarried partners do not have automatic inheritance rights.
Cohabitation agreements can help the surviving party retain the property they acquired when they began living with their partner and support their claim for specific assets.
What are the requirements for a cohabitation agreement?
California contract law governs cohabitation agreements as legally binding contracts. Like other romantic or even business contracts, the parties must:
- Put the agreement in writing,
- Agree to the terms, and
- Knowingly and voluntarily sign it.
Like a prenup, a cohabitation agreement is only effective if both parties are fully transparent about their finances. Each party should hire independent legal counsel to review the document.
The couple will only need to prove financial interdependence if they did not establish a cohabitation agreement, and a legal dispute arises after the breakup. Parties show financial interdependence by demonstrating that they shared the same address, had a joint bank account, or purchased a significant asset together.
What are some common aspects of a cohabitation agreement?
Besides property division in a breakup or death, cohabitation agreements can include as many or as few terms as the partners wish. Common provisions include:
- Joint bank account distribution
- The payment split for utility, grocery, and other living expenses
- Support payments
- Pet ownership
- Mortgage payment responsibilities
Cohabitation agreements cannot legally waive child support or determine custody arrangements. Family Law Courts determine these by ruling in the best interest of the child.
Parties may review and revise these contracts as circumstances change. If the couple later marries, their cohabitation agreement must clearly state that the couple will continue to follow its terms after marriage; otherwise, they will need to create a separate agreement, a prenup before marriage or a postnup after marriage, to protect their assets as a married couple.
Final Details
The details and impact of a cohabitation agreement vary from relationship to relationship. Couples can benefit from the contract when one individual:
- Earns significantly higher income
- Already owns a home
- Plans to become a stay-at-home parent
- Has a business they would like to keep separate
