Although an unmarried couple often mixes finances and buys property together, there is often no agreement in place governing how to untangle finances and split that property should the couple split up. With an amicable end to a relationship, this can be fine. But what happens if the relationship doesn’t end well?
A Living Together Agreement provides a way for couples to avoid many of the problems that occur when trying to figure out who gets what and who owes what at the end of a relationship.
Who Would Need a Living Together Agreement?
If you’re in a long-term and serious partnership but aren’t married, especially if you have children, a Living Together Agreement can be a very useful tool to ensure that each party is protected in the event of a breakup.
For example, if one partner has stopped working and postponed his/her career to care for children while the other partner is the sole breadwinner, a Living Together Agreement can help protect the dependent partner. This can avoid a situation where the dependent partner is left in the cold after sacrificing for the household.
A Living Together Agreement can also be very important if you plan to create a joint bank account. It can control how the money is deposited and spent during a relationship or how it is divided should the relationship end.
What Should You Include in a Living Together Agreement?
You can include as much or as little as you want in a Living Together Agreement – it really depends on what assets and financial behaviors you want to officially govern during a relationship and how you’d like to divide assets after a relationship. Here are some examples of things that you can include:
Large purchases (houses, cars, furniture, etc.) made during the course of the relationship
Expenses that each partner is responsible for
How to divide assets in a joint bank account
A method to resolve any disputes over the Living Together Agreement such as mediation
Getting Help with a California Living Together Agreement
Although Living Together Agreements are similar in all states, each state has its idiosyncrasies in how Living Together Agreements are interpreted and how implied agreements can govern in their absence. If you’d like to get peace of mind, protect your rights, and protect your assets with your co-habitants, contact an attorney. Call The Turbo Advocate at 510-414-8117 today to find out how to structure your Living Together Agreement in California.