Insights | Dimitra Tzortzatos
Living Together Without Marriage?
Why More New York Couples Should Consider a Cohabitation Agreement
By Dimitra Tzortzatos
Marriage is no longer the only way couples build a life together.
More couples are choosing to live together for years—or even decades—without marrying. They purchase homes, combine finances, share expenses, raise children and sometimes build businesses together.
But while their lives may look very much like those of married couples, their legal rights can be very different.
New York does not recognize common-law marriage. No matter how long an unmarried couple has lived together, the relationship itself does not automatically provide the legal and financial protections afforded to married spouses.
For couples who share significant assets or financial responsibilities, a cohabitation agreement can help fill that gap.
What Is a Cohabitation Agreement?
A cohabitation agreement is a contract between unmarried partners that establishes their respective financial and property rights and responsibilities.
In many ways, it serves a purpose similar to a prenuptial agreement. Rather than waiting until a relationship ends and attempting to determine what each person intended years earlier, the couple agrees in advance how important financial issues will be handled.
The agreement can be particularly valuable when couples purchase real estate together or make unequal financial contributions.
For example, one partner may provide most of the down payment on a home while both are listed on the deed. One may pay the mortgage while the other pays household expenses. One partner may contribute substantial funds toward renovations to property owned by the other.
While the relationship is strong, those arrangements may seem straightforward. If the relationship ends, however, the parties may have very different understandings of what those contributions were intended to mean.
A written agreement provides clarity before those disagreements arise.
What Can a Cohabitation Agreement Cover?
Every relationship is different, and the agreement should reflect the couple’s particular circumstances. Among other things, a cohabitation agreement can address:
- ownership of a home or other real estate;
- responsibility for mortgage payments, rent, taxes, insurance and household expenses;
- unequal contributions toward the purchase or improvement of property;
- ownership of joint bank accounts and other assets;
- responsibility for individual and joint debts;
- ownership and treatment of business interests;
- what happens to jointly owned property if the relationship ends;
- whether one partner will have the right to buy out the other’s interest; and
- procedures for resolving financial disputes.
For couples with substantial assets, businesses or real estate holdings, these issues can become considerably more complex.
Why Planning Matters
Without an agreement, unmarried partners may find themselves relying on general principles of contract and property law to resolve disputes that married couples would address within New York’s matrimonial-law framework.
The distinction can also matter if one partner dies. An unmarried partner does not automatically receive the same inheritance rights and protections afforded to a spouse under New York law. A cohabitation agreement should therefore often be considered as part of broader financial and estate planning.
Perhaps most importantly, these agreements require couples to discuss issues they might otherwise avoid: Who owns what? How will expenses be shared? What does each person expect if they purchase a home together? What happens if circumstances change?
Those conversations may be uncomfortable, but having them while a relationship is strong is far easier than trying to reconstruct the parties’ intentions after a relationship has ended.
Planning for Modern Relationships
A cohabitation agreement is not about assuming a relationship will fail.
It is about recognizing that couples who choose not to marry may still make significant financial commitments to one another—and that those commitments deserve thoughtful legal planning.
As family structures continue to evolve, legal planning should evolve with them.
For couples purchasing property together, blending families, building businesses, accumulating significant assets or simply choosing to share their lives without marrying, a cohabitation agreement can provide clarity and certainty about their financial relationship while helping to minimize the potential for costly disputes in the future.
About the Author
Dimitra Tzortzatos is a Partner at Davidoff Hutcher & Citron LLP, where she practices commercial litigation, matrimonial law, and family law. Her practice frequently involves the intersection of business, financial, and family law issues.
This article is provided for general informational purposes only and is not intended to constitute legal advice or create an attorney-client relationship. The information provided may not apply to your particular circumstances. You should consult an attorney regarding your specific legal situation.