In today's contemporary world, it is common for men and women to cohabit with their romantic partner without contemplation of marriage. Many relationships mimic a marriage without the legal tie.
When a marriage ends, all of the assets and debts of each spouse must be distributed pursuant to the principle of "equitable distribution". Recognizing that it costs more for two people to live separately than it does to live together, the goal in New Jersey is to equitably distribute the wealth and debt accumulated between the parties during the marriage so as to leave each party reasonably capable of maintaining a similar lifestyle after the marriage ends. Generally, each spouse has an equitable interest in the assets (and debts) of the other spouse, and upon divorce, the court must determine the value of that interest in order to carry out the equitable distribution scheme.
In the absence of marriage, there is no right or "equitable interest" in the assets of the other partner. Nor is there any equitable obligation to the debts in the name of the other partner. Likewise, there is no entitlement for support even if one partner became financially dependent on the other during a long term period of cohabitation. The only way to guarantee some financial security in the event of a breakup is to enter into a written palimony agreement. Palimony refers to financial support from one person to another when a long-term, non-marital relationship ends. It is generally given to a person who became financially dependent on the other person, relying on express or implied promises that his or her significant other would support him or her financially for the rest of their lives. Prior to 2010, claims for palimony in New Jersey were permitted when a promise of lifetime support was broken. Since 2010 however, New Jersey law provides that palimony agreements are only enforceable if the couple creates a written agreement with an attorney.
In the absence of a written palimony agreement, issues regarding the division of property such as a home or car can be complicated if the property was purchased in both names. An action for partition may be necessary. If a couple also has children, all issues will likely be determined in the family court system.
If you and your partner cohabit but elect not to enter into marriage, make sure you understand the potential financial ramifications of the decisions you make as a familial unit. There is nothing wrong with proactively securing your future financial rights by way of a written palimony agreement.
For more information or to schedule a consultation, I can be reached at 609-601-6600. Visit and Like my professional Facebook page for informative posts relative to family law and guardianships. Like and Share!
Happy Friday,
Stephanie
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