4 Ways Unmarried Couples Can Protect Themselves

These days, it’s become the norm for couples who’ve been dating for a period of time to move in together. They generally share their bills and lives without any kind of formal agreement. Seniors are as likely to move in with each other as 20-somethings, and they’re often motivated by practical concerns and economic benefits.

Unlike marriage, however, living together provides you and your partner no legal protections when it comes to making medical, financial or legal decisions on each other’s behalf. Without the default protections of marriage, it’s necessary to take additional legal steps to protect you and your partner.

1. Cohabitation Agreements

California allows Cohabitation Agreements, in which partners agree on financial obligations to each other, both during cohabitation and after it ends. A Cohabitation Agreement might  detail how household expenses will be divided. If there are children, there might be specifics about how a couple will divide childcare responsibilities and costs. If you own property with your partner, the agreement also can outline what happens to the property if you break up–who will purchase the other’s interest, for how much, and who will move out and when. Properly drafted, a Cohabitation Agreement will be enforced by the court.

2. Wills and Beneficiary Designations

If you die without a Will, California’s intestacy laws will dictate who will inherit your property. If you’re unmarried with no children, these laws typically leave assets to your parents or siblings. If you want your partner to inherit your property, you’ll need to create a Will that identifies how you want your assets distributed.

Assets such as retirement benefits and life insurance policies pass to heirs according to each account’s beneficiary designation, which overrides the designation of a Will. If you want your partner to inherit these assets, it is extremely important to make sure your beneficiary designation forms for all retirement accounts and life insurance policies are executed properly.

3. Advance Healthcare Directive

Doctors typically look to a patient’s closest living relatives to make healthcare decisions for those who are incapacitated and can no longer make decisions for themselves. If you’re married, your spouse is generally considered your closest living relative. If you’re unmarried with no children, your closest relatives are your parents, if they’re still living; if they’re not, then it’s your siblings to whom medical teams will turn to make important care decisions.

It’s important to know that an unmarried significant other has no legal rights

The solution is to make sure you have a valid Advance Healthcare Directive. This document will let you appoint your significant other/partner to make medical decisions for you if a physician determines you are unable to make decisions for yourself.

4. Financial Power of Attorney

A Financial Power of Attorney gives someone the authority to act on another person’s behalf. For many of our clients, a Financial Power of Attorney comes into effect when parents or other family members become physically or mentally incapable of managing their own affairs, and a family member or trusted aide takes over. Someone with a Power of Attorney will typically be responsible for paying bills, preparing taxes, settling claims, taking care of business interests and hiring household help.

If you and your partner are in a long-term, committed relationship, these legal documents will protect your rights if one of you becomes incapacitated or dies.

At California Document Preparers, we include a Financial Power of Attorney and Advance Healthcare Directive in our Living Trust Package. One more thing. If your Living Trust and other legal documents are dated and no longer reflect your current relationship, we can assist in your updating them. Contact us at one of our three Bay Area officesto schedule an appointment today.

Same-sex Marriage: Do You Need a Prenuptial Agreement?

It’s been a little over a year since the Supreme Court passed the landmark civil rights decision in favor of same-sex marriage in Obergefell v. Hodges. For thousands of gay couples who have lived together for years, bought homes, raised their families and become involved in their communities, the decision was a long-overdue recognition of basic human rights.

While the Obergefell ruling was a cause for celebration, it’s important that couples be thoughtful about making the decision to get married. Just because they now have the opportunity to marry doesn’t necessarily mean that marriage is the right decision.

Something interesting’s happening here: Fewer cohabitation agreements since legalization

Before legalization of same-sex marriage, many partners contemplating a long-term cohabitation relationship–especially those with considerable assets–would often create detailed cohabitation agreements to protect those assets.

Yet a recent American Association of Matrimonial Lawyers survey found that 70% of respondents noted a decrease in cohabitation agreements between same-sex partners since marriage has been legalized. This is a significant decrease in just one year and seems to indicate that those couples who were cautious about protecting their assets as they entered into cohabitation agreements are less cautious when it comes to marriage.

Ironically, once marriage was legalized, as the data is showing, couples are marrying without much thought to formalizing the same issues that they carefully documented when they began their live-in relationship many years before.

In same-sex marriage world, Prenuptial Agreements replace cohabitation agreements

Gay couples contemplating marriage should be cautious and thoughtful, making sure that they’re marrying for the right reasons—not just because they now can. They should think seriously about whether a Prenuptial Agreement is advisable—marriage is a contract that comes with emotional and financial responsibilities for every couple—regardless of sexual orientation.

Read other California Document Preparers’ blogs about Prenuptial Agreements

Prenuptial Agreements: Not Just for Those with Significant Assets

Prenuptial Agreements: Time for Kiss and Tell

Are you getting married and contemplating a Prenuptial Agreement? An increasing number of couples, especially those who are older and have accumulated assets, are making prenups an important part of their wedding planning. The California Document Preparers team helps you through every step.