While some consider marriage to be sacred, for others, it’s just plain paper. Those who decide to live together with an extramarital partner should know their rights and obligations. In terms of its content, a cohabiting relationship can be as good and successful as any marriage. But there are some differences, especially in legal issues, if such a relationship ever breaks down.

In their extramarital life, people can do everything just like any married couple. They can have kids, buy a house, take out a mortgage, or start a business together. The problem may arise if this couple splits up, as the law on this matter differs from the law applicable in the case of divorce.

A cohabiting couple can have a hard time separating their finances after splitting up. Ideally, all their property should be split into equal parts. In most cases, that’s not possible, as ex-partners often don’t agree to compromise or concessions. That makes money issues more complicated than most people imagine.

Real Estate Division

After spending some time together, many unmarried couples decide to strengthen their relationship by buying a home. In most cases, they do so by joint forces; both parties are listed as owners. That’s the fair solution when things are good. But when they break up, certain problems arise. For guidance on this, one should search for a reliable asset division attorney in Schaumburg (or one in your location)
to make sure you have someone that knows how to handle this for you.

In the case of single-ownership, things are clear. The non-owner has to move away and has no rights at all. Also, if one partner is the majority owner on paper (for example, 60 to 40), the property belongs to them by law. The minority owner still has to repay their share of the debt. However, the problem is most complex when the property is divided in half.

Suggested Solutions

One solution can be taking out a loan or mortgage solely by one side. In this case, this partner gets the entire property, while the other party has no more obligations or rights. Another solution is the real estate sale and full loan repayment. In this case, there is no property division. Still, that’s not a good solution since the property’s price is often lower than the loan amount.

Also, split couples can continue to repay their parts of the mortgage or loan. That can be tricky, especially if only one of them moved out from the house. Ultimately, you can let the bank repossess your property, but that can lower your credit score.

In principle, there are many solutions, but not all are universally acceptable. Which will be best depends on what kind of relationship you have with your ex-partner. It may be best to hire mediators to split your property. They will keep in mind your finances, credit score, employment, etc. That way, they will be able to make a fair division.

Property and Asset Division

People in cohabiting relationships who think in advance keep their bank accounts, health insurance, investments, and retirement funds separate. They should be named as the only owners or managers of these assets. That’s a good way to secure their finances in case of splitting up. 

Everything owned solely by you or your partner can’t be divided after your break-up. That applies to all stuff you had before the relationship, but also what you gained during the relationship. If you bought something for yourself, that’s your and no one else’s. The same goes if you got something as a gift or heritage.

A cohabiting couple should make an arrangement once they start living together. Otherwise, it won’t be easy to divide up any common assets acquired during the relationship. This document can make things much easier after splitting up, so both parties can move on with their lives in peace.

Tips on making this type of arrangement are described below:

https://www.advicenow.org.uk/guides/how-make-living-together-agreement 

Left with Rent

Suppose you don’t have a common property, but you’ve rented an apartment together. You did that at the urging of your partner, as you probably couldn’t afford the rent on your own. So you paid it with joint efforts, and that’s fine. But what happens after the break-up?

If the joint rent was an informal agreement, but the named tenant is just you, it’s clear that the one who has to leave is your ex-lover. You have the contract with the landlord, so you’re all settled. Yet, you may be in a slight problem if the rent burdens your budget too much.

One solution is to find a new home you can afford. But suppose you are contractually bound to the current landlord. In that case, you can find a roommate (make sure to ask for the landlord’s consent). Or you can cut some costs and monthly bills (for example, high-speed Internet or mobile data package). Rainy days won’t last forever, so hold on.

If you have moved in with a named tenant partner, you have no rights to that apartment after the break-up, even if you have paid part of the rent. They can ask you to move out anytime after giving you some reasonable notice. If they decide to leave, you can make a new contract with the landlord in your name.

Ex-Partner and Child Support

Make sure you get familiar with the laws on cohabiting relationships in your state. Most courts won’t oblige you to support your ex-partner after ending your relationship. The exception exists only if you have a written post-separation support agreement.

In case the partners from the extramarital community have children together, they have the right to child support from the parents with whom they don’t live. You can agree on custody out of court, which is often the most desirable solution because it’s the least stressful for both you and the kids. But if that’s not possible, the court determines custody and alimony amount based on many factors.

Many people don’t discuss their finances when their love flourishes. But when things come to an end, many conflicts can arise. Cohabiting couples can face many problems after splitting up. But although these situations can be challenging, reasonable people can overcome these issues.

*This is a collaboration post