One of our recent posts dealt with common law marriage in Texas. If that applies to you, please see our post from September 6th as well).
This blog pertains to people who are living together in Texas but are unmarried under Texas law.
Living with another person can put you in a legally vulnerable position. Each situation is different. Here are some general guidelines to consider:
- Don’t commingle your property without full disclosure. This means that you need to really know the financial situation of your partner before taking any risks. Does she owe credit card debts, back child support, student loans; have liens or judgments against her? Would it be beneficial to your credit rating to keep your finances totally separate?
- Don’t commingle your property without a specific agreement. If you are going to commingle large amounts of money and property it is essential to have a written agreement between the two of you that would stand up in a court of law. This may offer some protection against third parties as well.
- Don’t pay mortgages or loan payments or improve property without gaining some ownership interest in the property or having a written agreement about it, unless you don’t mind taking a risk that the payments will be viewed later as a “gift”.
- Don’t give up your career to help in your partner’s business without pay and without a written agreement.
- Don’t sign or cosign or agree to be responsible for your partner’s debts unless you know what you are getting into, specify repayment terms in writing, and have considered what the action may do to your credit rating.
- If you decide to jointly own property (or pets) have a written agreement about what would happen if you split.
- Discuss what would happen if one of you dies before the other. Would your partner get to stay in the home? Do not assume that your partner would be allowed to stay in the home or keep certain property because “s/he has been paying on it”, or “it partially belongs to her”. Have valid wills that specify what you want to happen, especially if you anticipate a fight from your other family members.
- Be sure that your bank accounts and beneficiary designations have your partner listed as your beneficiary after you die, if that is what you intend. If you are unmarried, your partner does not automatically qualify as “surviving spouse”.
- Have health care powers of attorney that allow you to speak for each other in the event of illness, if that is what you both desire. Since the two of you are not legally “family” to each other, you need these documents to avoid problems visiting, getting information, or making medical decisions in the event of a serious illness.
- If the worst were to happen, and the relationship doesn’t make it, you will not have the protection of “divorce court”. A written contract may be the only legal grounds that you have to get in front of a judge and request fair treatment.
Even if you absolutely, 100% trust your partner now and forever, things are not totally in your partner’s control. For instance, the law does not give the same protections to unmarried couples as it does to married couples when it comes to illness, inheritance and community property ownership. Secondly, there may be threats from your partner’s creditors that put your property at risk. Thirdly, even with the best of intentions and between people who truly care about each other there are misunderstandings. And lastly, it is always better to have a well-thought out plan that can be adjusted later than it is to go in “blind” and hope everything is going to be OK.
A qualified attorney can help you assess your financial and personal situation and put together a cohabitation agreement or other contracts that will protect you both and help you to both live up to your promises and intentions. The attorneys at Kalish Law Office have experience in family law, debtor/creditor law, contract law and estate planning, so we can help you look at every aspect of your situation, inform you of your options and help you reach a decision on what you need.
Kalish Law Office www.kalishlawtexas.com 281-363-3700
The Woodlands, Texas. Since 1984
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