Couples living together without the formality of marriage, otherwise known as cohabitation, is increasingly common in Indiana and across the country. While moving in with a partner is an exciting step, it’s critical for couples to understand a core legal reality: Cohabitation does not grant the same rights and protections as marriage in Indiana. For unmarried partners, a Cohabitation Agreement is an important tool for financial and legal protection.
The Legal Landscape for Unmarried Couples in Indiana
Many people mistakenly believe that living together for a long period, perhaps seven or ten years, automatically creates a common law marriage. This is not true. Indiana does not recognize common law marriage. For the vast majority of cohabiting couples in the state, little legal safety nets like there is for married couples.
What Happens Without an Agreement?
Absent a written agreement, if an unmarried relationship ends, Indiana has no “divorce court” to equitably divide property. Instead, you are generally left with simple contract and property law. This means that assets and debts are typically divided based on whose name is on the title, deed, or loan document, regardless of the length of the relationship or each person’s financial contributions. If one partner pays the mortgage on a house owned only by the other partner, for instance, they may have a long, expensive legal battle just to recover their investment based on complex theories like implied contract or unjust enrichment. A Cohabitation Agreement eliminates this ambiguity and potential harm.
What is a Cohabitation Agreement?
A Cohabitation Agreement is a legally binding contract between two unmarried individuals who live or plan to live together. It functions much like a prenuptial agreement, but it is written in contemplation of a domestic partnership rather than a marriage. The agreement is a powerful planning tool that is generally enforceable in Indiana courts under principles of contract law, so long as it is not contrary to public policy.
Core Provisions of an Agreement
A well-drafted Cohabitation Agreement gives the couple control over their financial and living arrangements, both while they are together and in the event of a separation. These agreements typically cover:
- Property Ownership and Division: Clearly defining which assets are individual (separate property brought into the relationship) and which assets are joint (shared property acquired together), and how the joint property will be divided upon separation.
- Financial Responsibilities: Outlining who pays for what, including rent or mortgage, utilities, household expenses, and joint debt repayment. This brings clarity to shared budgets.
- Debt Liability: Specifying who is responsible for debt incurred during the relationship, regardless of whose name is on the account.
Beyond the Breakup: Other Legal Protections
While a Cohabitation Agreement primarily addresses separation and property division, it does not cover every legal gap created by being unmarried. To fully protect yourselves, cohabiting partners in Indiana should also execute companion legal documents:
- Estate Planning Documents: Because partners have no automatic inheritance rights, a Will or Trust is necessary to ensure assets pass to your partner if you die.
- Healthcare Directives: A Healthcare Power of Attorney or Advance Directive must be in place to grant your partner the legal authority to make medical decisions for you if you become incapacitated.
- Financial Power of Attorney: This document gives your partner the authority to handle your finances if you are unable to do so.
A Cohabitation Agreement is not about planning a failure; it is about providing the same level of legal and financial certainty that marriage automatically offers. By entering into a clear, written contract, you and your partner can protect your individual rights, avoid costly disputes, and ensure a secure future together.
This blog was written by attorneys at Dixon & Moseley, P.C., who handle a wide variety of legal issues, be it criminal or civil in nature, throughout the state. It is written and posted for general educational purposes and is not to be construed as legal advice or solicitation for services. It is an advertisement.*
