Divorce is tough. A messy legal battle on top of an emotional struggle is the last thing anyone needs.
Property division is a problem that can make a breakup even more difficult than it already is.
But when unmarried couples break up, property division issues present a whole host of unique and complicated legal challenges.
The fact is…
The law views unmarried cohabitants far differently than it does married spouses. The simple reality is that unmarried couples lack basic property rights.
One person’s name on the title typically means that property belongs to them alone. No overarching legal framework exists to divide things evenly or fairly otherwise.
And the data confirms it’s a bigger problem than ever before.
What’s Inside
- Why Property Division Is Such a Problem
- 4 Key Property Division Problems
- What You Can Do To Protect Your Property Rights
- Taking Action Right Now
Why You Should Care
Sharing your life with someone is hard. Sharing your home, bank account, and all the pieces of your financial life is an even bigger challenge.
Recent data from the Pew Research Center found that 59% of adults in America between the ages of 18 and 44 have lived with an unmarried partner at some point in their lives. Compare that to just 50% who have ever been married.
That’s crazy.
I know.
But it also means an increasing number of Americans are facing big legal challenges in property division without the basic protections that come with a marriage license.
Most states offer very limited legal protections for property division when unmarried couples break up.
It’s a property division problem that gets a lot of people off guard. Finding a Property Division Lawyer in Arkansas can help you protect your property rights even when Arkansas state laws don’t offer clear legal remedies.
The bottom line.
Marriage is what typically defines who gets what property when a relationship ends. In the eyes of the law, if your name isn’t on the title, it’s not yours.
That makes for some very inequitable outcomes in many cases.
The Top Property Division Issues
Let’s break down some of the most pressing issues unmarried couples face when they divide property.
Lack of Property Rights
Married spouses have divorce laws that govern their rights when a relationship dissolves. A whole host of laws provide legal protections and clear rules for property division.
Unmarried couples are on their own. In the eyes of the law, each unmarried cohabitant usually owns what’s in their name and nothing more.
Consider this…
One person has been paying half of a mortgage for years on a house with only the other person’s name on the deed.
If the two of them break up, the non-title holding person can be left with no rights to the property. And they can walk away empty-handed.
It’s more common than you’d think.
Joint Property Ownership Issues
Things are a little clearer when both names are on a title. Joint ownership usually means equal shares of value. At least, where things are titled.
Things get murky when only one person’s name is on a title but both contributed to the purchase. Proving financial contributions becomes an uphill battle.
Title is almost everything.
State Laws Differ Dramatically
A few states do recognise what’s known as common-law marriage. Common-law spouses often have rights similar to married couples if they live together for a specific period.
The majority do not.
Arkansas, for instance, doesn’t recognise common-law marriages formed after 2019. This puts couples in a position where other legal measures must be taken to protect themselves in property division matters.
It’s important to know where you stand with state laws in these cases.
Verbal Agreements Carry Little Weight
Couples make promises to each other about property all the time. Who’s name goes on the house or car when things start to get serious is a big decision.
Verbal agreements that are not put down in writing are typically unenforceable. Proving one party said something to the other usually becomes a “he said, she said” problem with no proof.
Get everything in writing.
Protecting Property Rights
The good news is unmarried couples can protect themselves going into a relationship or early on.
Create a Cohabitation Agreement
The single best action any unmarried couple can take is a cohabitation agreement. A cohabitation agreement is a legal contract that clearly lays out:
- Who individually owns which property assets
- How all property acquired jointly during the relationship will be divided
- Financial obligations both people have to the other during the relationship
- How shared assets are handled if a relationship ends
It’s essentially a prenup for couples who choose not to get married.
Maintain Good Records
Keeping good records of all financial contributions and property ownership discussions is key if disputes arise. This includes:
- Proof of all financial contributions to jointly acquired property
- Bank statements and cancelled checks showing payments made by both parties
- Receipts for major purchases or investments in the relationship
- Any written communication about property ownership between the parties
Good records can be critical to providing evidence to the court if a dispute can’t be resolved amicably.
Title Property Appropriately
How property is titled during the relationship is critical to protecting rights later. If both partners contribute to a purchase, both names should be on the title or deed.
Joint tenancy is the preferred option. It clearly establishes equal ownership rights between both parties.
It’s also the easiest and most clear-cut way to simplify the division of things when a relationship ends.
Talk to a Property Division Lawyer Early
Don’t wait until property division issues come up. A property division lawyer can help couples put the right agreements in place, title property appropriately, and provide guidance on state-specific laws that impact unmarried couples.
It’s a small investment to make early on that can save a lot of headaches later down the road.
What Happens When Legal Disputes Arise
Breakups without a pre-existing agreement sometimes can’t be resolved otherwise. It’s best to pursue mediation as a first step. Mediation can allow an impartial third party to help both sides work towards a fair resolution without the time and expense of litigation.
When that fails or isn’t possible, unmarried couples have civil court remedies. Because they don’t have divorce courts to fall back on, these typically take the form of breach of contract or unjust enrichment lawsuits.
These cases can be expensive and time-consuming to litigate as the court must be shown there was a contract and that it was broken by one party.
Partition actions can also be used to force the sale of jointly held real estate and divide the proceeds.
The Takeaways
Property division issues for unmarried couples present unique legal challenges but are not insurmountable.
A few points to remember include:
- Unmarried couples have few legal property rights when compared to married ones
- State laws on how property division issues are addressed vary wildly
- Cohabitation agreements spell out ownership rights between both parties
- Proper property titling and good financial records can prevent most disputes
- Legal guidance early on in a relationship can pay dividends later on
An increasing number of cohabiting couples in America is making this a more important subject than ever.
The best thing any couple can do is start the conversation about these issues while the relationship is good and before anything causes conflict.
