Living Together? How to Protect Yourself Legally
A USA TODAY article notes that the number of unmarried couples who are living together rose 13 percent in 2010. Whether it was because of the bad economy, or because more young people are living together rather than marrying to avoid divorce, there are certain steps unmarrieds should take to protect their interests in case of a split.
If you and your partner decide you want to purchase a house, you should decide beforehand how you want to own it. The house will belong to whomever is listed on the title, even if both of you paid for it. One option that ensures both partners own an equal share is to own the house as joint tenants with right of survivorship, so if one dies, the other owns the home outright. However, if you split, you are both still legally liable for the mortgage. Another option is to draw up a trust or contract that specifies how the property will be handled if a break-up ensues.
If partners plan to be in a committed relationship over time, there are also estate planning issues to consider. Since the law does not recognize living together, unmarried couples should speak with an estate planning attorney to discuss wills, trusts and tax avoidance strategies that will ensure their assets pass as they wish.
Health care is also a consideration for unmarrieds. If your employer allows you to add a domestic partner to your policy, the IRS treats any of your partner’s benefits as taxable income unless your partner is a dependent. If you both have policies from your respective employers, it is probably best to maintain those separately.
