In preparation for this article, I had a little fun Googling
the phrase, “shacking up” just to see whether it’s still in use, or whether
that was just an old fashioned term that has fallen by the wayside. Well, guess what? The phrase is just as common today as
ever. And apparently so is shacking
up! In my last article, I mentioned that
sometimes couples live together without getting married for a myriad of
reason. Some call it a test drive, while
others have a more financially-based reason for their living arrangements.
Shacking up definitely has estate
planning connotations. Specifically, in
states like Texas where common law marriage is recognized, at what point does
your partner have a potential claim to your estate? Texas recognizes common law marriage, so you
could be at risk of having your partner claim a spouse’s interest in your
estate in the event of death. Other legal
claims based in contract and reliance can arise as well. Basically, in the absence of a clear
understanding and written agreement
between the parties, you leave yourself wide open to all kinds of claims just
because cohabitation creates a blurry, undefined circumstance.
For example, your roommate could always
make a claim against your estate, saying something along these lines: “Bob
promised me that if I moved in with him, took care of him, played house with
him, had sex with him, and enjoyed life with him, then he would leave me
everything.” Or, your roommate could
claim that he or she spent all of their money on your household expenses (or even
claim an ownership interest in some portion of the house) “as a loan” and that
he or she is are entitled to repayment.
The list of potential claims is as endless as your roommate’s
imagination.
If you want to avoid any confusion
and protect your estate from any claims of infiltration by your
“it-may-work-out, it-may-not” roommate, consider a cohabitation agreement. It’s
similar to a prenuptial agreement, which is a document signed by couples prior
to their marriage spelling out their intentions with regard to their property
after their marriage. Just as with the
prenup, a cohabitation agreement spells out the parties’ agreement vis’-a-vis’
the property they each own or co-own together, with the only difference being
that they aren’t actually married. The
typical cohabitation agreement provides at
least for the following, although additional issues are included in a comprehensive
agreement:
1.
The reasons for entering into the agreement;
2.
The date the parties began living together and
brief history of their relationship.
3.
A list of all property owned by both
parties. Without this detail, the
agreement could later be set aside (i.e., declared invalid) on the grounds that
one party did not make full disclosure to the other;
4.
How are living expenses to be paid; whether a
joint bank account will be established; who owns newly-acquired items; who pays
for repairs; will payments for maintenance and improvements to one partner’s
property create an ownership interest or be treated as a loan or gift?
5.
If one partner is supporting the other, what is
that partner receiving in return? And
how long is the support to continue?
6.
How do the parties revise the agreement if
circumstances change?
7.
Termination of the relationship;
8.
Upon death, does the surviving partner receive
anything? Who is responsible for the
deceased partners’ debts? Are there
other beneficiaries?
9.
How are disputes resolved?
10.
Does the agreement continue if they later marry?
Coupled with a trust agreement, which establishes a “holding
tank” for the separate property of one of the partners, a cohabitation
agreement warrants serious consideration.
It may seem awkward to plan for death or separation often in the early
stages of a relationship, but if you are willing to address these issues up
front, many of the problems arising from the death of one of the partners can
be avoided.
For more
information on estate planning and other legal needs, or if you have a legal question
you would like for me to address, please visit my website at www.leflerlegal.com, email me at slefler@leflerlegal.com, or call me at 512-863-5658. My office is located in Tamiro Plaza, 501
South Austin Avenue, Suite 1320, in Georgetown, Texas.
Here is Mr Benjamin contact Email details,lfdsloans@outlook.com. / lfdsloans@lemeridianfds.com Or Whatsapp +1 989-394-3740 that helped me with loan of 90,000.00 Euros to startup my business and I'm very grateful,It was really hard on me here trying to make a way as a single mother things hasn't be easy with me but with the help of Le_Meridian put smile on my face as i watch my business growing stronger and expanding as well.I know you may surprise why me putting things like this here but i really have to express my gratitude so anyone seeking for financial help or going through hardship with there business or want to startup business project can see to this and have hope of getting out of the hardship..Thank You.
ReplyDeleteHappy 2022 to all !
ReplyDelete