Love and the Law: Why a Co-Habitation Agreement is a Wise Move for Unmarried California Couples

Moving in with a partner is an exciting new chapter – but few couples consider the legal implications of sharing a home if they don’t have a formal agreement in place. In California, unmarried couples do not automatically have the same legal protections as married spouses. As a result, this can lead to significant financial and emotional turmoil if the relationship ends or if you run into unforeseen circumstances that you never considered.

A well-crafted cohabitation agreement can provide clarity, security, and peace of mind, ensuring that you and your partner both understand your rights and responsibilities in the relationship. Without this type of agreement in place, disputes over property, financial contributions, and shared responsibilities can quickly become complicated and contentious.

If you’re moving in with a partner – or you’re already living together – taking proactive legal steps now can save you time, money, and stress in the future.

How to Create a Cohabitation Agreement in California

A cohabitation agreement is a legally binding document that outlines the financial and personal arrangements between unmarried partners who live together in California. This type of agreement helps prevent misunderstandings and disputes by clearly defining each person’s rights and responsibilities – as well as planning for life’s challenges.

A cohabitation agreement should cover essential aspects of your shared life, such as:

• Property ownership and division if the relationship ends
• Financial responsibilities such as rent, mortgage, utilities, and shared expenses
• Debt management, specifying who’s responsible for existing or future debts
• Healthcare decisions and emergency planning
• Pet ownership and financial responsibility arrangements
• What happens in the event of a separation

You and your partner should have an open conversation about your expectations and financial realities. Transparency is key to ensuring that your agreement is fair and meets both of your needs. You must also put your agreement in writing, as verbal agreements won’t hold up in court. It should be signed by both parties, preferably in front of a notary.

Even if you and your partner agree on all of the terms, consulting an attorney ensures that your agreement is legally sound and enforceable under California law. A family law attorney can help customize the document to your unique situation, preventing costly legal disputes later on.

By taking these steps, you can protect your rights and financial interests while strengthening the foundation of your relationship, both in the present and for many years to come.

Debunking the Myth of Common-Law Marriage in California

Many people mistakenly believe that living together for a certain number of years automatically gives them the same legal rights as married couples. Unfortunately, this is one of the most common misconceptions about cohabitation in California.

California does not recognize common-law marriage of any kind, meaning that no matter how long you’ve lived together, you do not have the same legal protections as a married couple, unless you take legal steps to secure them. Unlike some other states, California does not grant automatic property rights, financial support, or inheritance rights to unmarried partners. However there are some exceptions to this rule mentioned in the points below. 

Why does this matter? Because without a legal marriage or a cohabitation agreement, you may face unexpected financial and personal challenges, such as:

• Property Disputes – Assets acquired during your relationship may not be divided fairly if you separate, and you may have no legal standing to contest the division. Additionally depending on how the deed is titled, you may have an issue if one of the partners passes away.
• Lack of Financial Support – Unlike spousal support (alimony) in divorce cases, unmarried partners are not entitled to financial support after a breakup.
• No Legal Say in Medical or Financial Matters – Without a legal agreement, you or your partner may not have decision-making authority in case of an emergency.

Since common-law marriage doesn’t exist in California, the best way to protect your rights is to have a legally binding cohabitation agreement. This ensures that you and your partner both have clear expectations and legal protections in case your relationship changes.

Exceptions to the Rule: What is a Marvin Action?

There may be times where a civil case can be filed or claims can be made in a later divorce case based on what is known as a “Marvin Action.”  This is a legal claim that arises from an unmarried couple’s cohabitation and alleged promises or agreements between them regarding property, financial support, or other benefits resulting from the non-marial relationship. The term “Marvin Action” comes from the 1976 California Supreme Court case Marvin v. Marvin, where the court ruled that even though the couple was not married, the law could enforce certain contracts or agreements made during the relationship, especially when it comes to property and financial support.

A Marvin Action typically involves a claim by one party against the other for:

1. Property Distribution: One partner may seek a share of property or assets acquired during the relationship, claiming that there was an implied or expressed agreement regarding the division of property if they ever split. Having a cohabitation agreement in place, may resolve the division of property or clarify any intentions about ownership of the property. 
2. Financial Support: A partner may claim that the other agreed to provide long-term financial support, which may be enforced after the relationship ends, even though they were never married. 
3. Unjust Enrichment: This claim occurs when one partner feels that the other has been unjustly enriched at their expense. For instance, if one partner contributed financially to the acquisition or upkeep of property, they might argue they are entitled to a portion of the property’s value or a financial settlement based on those contributions.
   

So while most cases will not provide non-marital partners claims against the other partner,   a Marvin Action can result in a financial or property award to the partner bringing the claim, much like a divorce settlement between married couples. A well-crafted Cohabitation prevents both parties from litigating these issues down the road and preserves and protects their rights. It also allows you and your partner to be able to have conversations about your intentions prior to moving in together. 

How a Cohabitation Agreement Can Safeguard Your Property

One of the most critical purposes of a cohabitation agreement is protecting the property that each partner brings into the relationship, as well as dividing fairly any assets that you acquire while living together. The other purpose is to discuss the allocation of expenses and whether that creates an ownership interest in any asset.  Without the legal safeguard of an agreement, you can run into contentious disputes over ownership if your relationship ever changes or ends.

A cohabitation agreement allows you to clearly define:

• Which assets belong to each partner individually – This includes property owned before your relationship as well as your inheritances and personal investments. If one partner owns a home and the other partner is moving into that home, you may want to clarify if the payment of expenses creates any type of interest in the property.
• How jointly purchased assets are handled – If you buy a home, car, or other significant asset together, your agreement should specify how you define ownership of that asset and how you’ll divide it in case of a separation.
• What happens to shared possessions – Items like furniture, electronics, or artwork can be addressed in the agreement to prevent future disputes.

Example: Protecting Real Estate Interests

For example, if you and your partner purchase a home together, it’s essential to clarify:

• Who holds legal title to the property?
• How will the mortgage and property expenses be divided?
• What happens if one partner wants to sell or move out?
• How would the proceeds of a sale be split?

Even if only one partner’s name is on the deed, a cohabitation agreement can outline financial contributions and ensure that you’re both treated fairly. By addressing these issues upfront, you can prevent costly legal battles and ensure that both of your property rights are respected. The cohabitation agreement can protect you and your spouse if you later enter into a marriage as it will outline the separate property interests of each person are. 

Defining Shared Expenses and Individual Obligations

Financial transparency is key to a healthy cohabitation agreement. Your terms should outline how you’ll share expenses and which financial responsibilities you will each have:

• Rent or Mortgage Payments – Who pays what portion? If a partner is paying rent on a property owned by the other partner, how will that be allocated?  
• Utilities, Groceries, and Household Costs – Will you split common expenses evenly or will your contributions be based on income levels?
• Insurance Policies – Health, renter’s, or homeowner’s insurance should be discussed to ensure proper coverage for both of you. If you jointly own property, you may want to discuss a life insurance policy so that neither partner needs to leave the property at the death of their spouse. 
• Retirement and Savings Contributions – If you’re pooling funds for a shared future, your agreement should specify how your savings will be managed and how it will be divided if something happens to one of you in the future and/or if the relationship ends. 

With a cohabitation agreement, you could even put in alimony or financial support provisions in case you split up, which you wouldn’t get if you weren’t married. These may be included in order to prevent either partner from filing a “Marvin Action” as indicated above. 

Without a written agreement in place, verbal financial arrangements can quickly lead to misunderstandings or disputes. Defining each of your contributions in writing ensures that both of you understand your obligations, which reduces your risk of conflict now and in the future.

Managing Debt and Liabilities Within a Cohabitation Agreement

Debt can become a major source of tension in any relationship, and without a clear agreement, you may find yourself financially responsible or inadvertently paying for obligations that aren’t yours.

Your cohabitation agreement should specify:

• Which debts are solely one partner’s responsibility – This includes student loans, credit card debt, and car loans that were taken on before the relationship or during the relationship. While the presumption is that each person will be responsible for their own debts, you may want to discuss what happens if those are paid from a joint account. 
• How jointly acquired debts will be handled – If you take out a loan together, lease a vehicle, or use a shared credit card, your agreement should clearly define payment obligations.
• Responsibility for unexpected debts – You can prevent disputes by addressing how unforeseen financial obligations such as medical bills or property repairs, will be handled.

Example: Protecting Yourself From Liability

Without a written agreement in place, you could unknowingly assume responsibility for your partner’s financial obligations or vice versa. For example:

• If you co-sign a loan, you could be legally responsible if your partner defaults. This can continue after the relationship ends if you are still on that loan. 
• If you split a lease, you may be held liable for unpaid rent if your partner moves out or damages if you are the one who moves out.
• If you contribute to a mortgage without being on the title, you may not have any legal claim to the property in the case of a separation or sale.

By clearly defining your debt responsibilities, your cohabitation agreement can protect you and your partner both from unnecessary financial risks.

What About Pets in Cohabitation Agreements?

When unmarried couples live together, their cohabitation agreement should address more than just finances and property – it should also cover arrangements for pets.

Pets often feel like family members, but they’re considered property under California law. If there is no marriage, then community property laws do not apply to your pets. Without a clear agreement in place, disputes over pet ownership can become emotional and contentious. To avoid conflict, your cohabitation agreement should outline:

• Who will keep ownership of your pets if you separate?
• How will you share pet-related expenses such as food, grooming, and vet care?
• Will you have visitation or shared custody arrangements of your pets if you both want them to be involved in your lives after a separation?

By addressing these issues early on, you can avoid painful disputes and ensure that your pets are cared for in the best possible way. It is important to note that a Cohabitation Agreement can not address the parenting or support of children. 

When Things Change: Updating Your Cohabitation Agreement

Life is unpredictable, and circumstances change. What made sense at the beginning of your cohabitation may not align with your needs years down the road. That’s why it’s important to review and update your cohabitation agreement as necessary.

When should you revise your cohabitation agreement? Consider a revision if:

• You acquire new assets or real estate – If you buy a home together, inherit property, or make significant financial investments, these should be addressed in your agreement. You will want to look at your agreement before taking title on new assets.
• You or your partner experiences a major career or income change – A job loss, promotion, or career shift may affect financial contributions and responsibilities. Your agreement may want to reflect that.
• You have children or adopt pets – Expanding your family brings new considerations. If one person stops working to care for children, you may want to add new terms to cover the changes in contributions to the household. 
• Your relationship status changes – If you get engaged or you decide to separate, updating or dissolving your agreement ensures that both of your rights are clear. Often, you may wish to have a premarital agreement in place to either affirm or change the terms of the cohabitation agreement. 

Revising your cohabitation agreement is straightforward but should be handled with sensitivity.

• Discuss any changes with your partner – Try to agree on any updates to avoid conflict, but you can also bring in the help of a mediator to reach an agreement. It should be noted that a mediator is neutral but does not act as an advocate for either partner.
• Put any modifications in writing – Verbal agreements are not legally enforceable, so all changes should be documented and signed by both parties.
• Seek legal guidance – An attorney can ensure that any updates are legally sound, enforceable and protect your best interests. In order to make sure that your agreement is enforceable you want to have an attorney draft the agreement and a separate attorney review the agreement. If you are creating the agreement in mediation, both you and your partner should have your own attorney review and sign it for you. 

A cohabitation agreement isn’t just a one-time document – it’s a living agreement that should evolve with your relationship. Regularly reviewing and updating your agreement ensures that you and your partner both remain protected and on the same page. You also want to make sure that you are using the agreement as an outline for how you will manage expenses or title assets that you obtain together. 

Your home, finances, and future deserve protection, no matter your relationship status. A cohabitation agreement isn’t just about planning for the worst – it’s about ensuring fairness and stability for both partners. Without a clear, legal agreement in place, you risk costly disputes and uncertainty if your circumstances change.

Fortunately, you don’t have to navigate these complex legal matters on your own. The experienced family lawyers at Moradi Neufer have guided many California couples through the process of creating cohabitation agreements that reflect their unique needs and goals. Now is the time to take action to safeguard your future and avoid unnecessary legal complications. Contact us today to start crafting the right terms for you.