My Live-In Partner and I Are Breaking Up. How Do We Divide Our Assets?

When a married couple in Florida divorces, generally each spouse receives half of the assets, assuming they did not have a prenuptial agreement that stated otherwise. Unmarried couples who cohabitate lack this legal protection.

Typically, when a cohabitating, unmarried couple breaks up, a big issue is determining who keeps the shared home. Unlike a divorce, in which each spouse is entitled to a portion of the value of the home, when an unmarried couple divorces, the name on the deed determines who keeps the home. If both partners are listed on the deed, then either one partner can buy the other out, or they can sell the house and split the profits. If one of the partners is named on the deed, that partner keeps the home. However, sometimes there are situations in which only one partner is named on the deed but the other partner significantly contributed to the down payment, mortgage payments, etc. In that case, the unnamed partner can sue the partner named on the deed to claim a portion of the value of the house. This same legal process can be used for other large assets, such as cars, that are titled in one name but were purchased or maintained by both partners. It’s important to note, though, that this can be a long and expensive legal process.

The best way to avoid being in this situation is to create a cohabitation agreement before moving in together. A cohabitation agreement is similar to a prenuptial agreement. Some of the areas it can cover include:

• Financial roles and responsibilities
• House-related responsibilities – how much each partner will contribute financially to the down payment and mortgage, utilities, maintenance and ongoing home expenses; what happens to the home if the relationship ends
• Pet responsibilities – who pays for pet expenses and who keeps the pet if the relationship ends
• Vehicles – who pays for the vehicles and keeps them if the relationship ends

A cohabitation agreement is an important document for any unmarried couple that plans to move in together. Each partner should have their own attorney review the document. Both parties must also provide a full financial disclosure as part of the process and enter into the agreement voluntarily and without duress.

The cohabitation agreement should be reviewed and revised after life milestone events, such as purchasing property or having a child. It should also be revised if one partner switches from full-time employment to part-time or to become a stay-at-home-parent.

If you are in a cohabitating relationship that is ending, contact Troy Legal to learn about your legal rights to assets. Or, if you are thinking about taking your relationship to the next level and moving in with your significant other, contact Troy Legal to learn more about drafting a cohabitation agreement. Our experienced attorneys will listen to the specifics of your situation and advise you on how to protect or defend your rights as you move into the next chapter of your life.