Older Americans face new legal and financial challenges as widowed and divorced individuals increasingly form unmarried partnerships. According to the US Census Bureau, over half of older adults have only married once and often choose to remain legally single in subsequent relationships. Without a legally recognized marriage, civil union, or domestic partnership, cohabiting couples risk losing inheritance and asset rights unless proper legal planning is in place.
Why Legal Agreements Matter for Unmarried Couples
Assets are not automatically inheritable between unmarried partners. Comprehensive estate planning and a “living together contract” are essential. These contracts can:
- Cover specific transactions, like purchasing a home
- Include broader financial and property matters
- Specify distribution upon death, incapacitation, or separation
Many couples assume informal agreements about daily decisions—such as pet care or household chores—will hold up legally, but courts typically do not enforce such casual contracts. For unmarried couples, having separate, enforceable agreements for personal and financial matters is critical to avoid disputes.
Living Together Contracts and Estate Planning
A thorough living together contract should include:
- Assets and property owned before the relationship
- Assets and property acquired during the relationship
- Clear property division similar to a prenuptial agreement
- Rules regarding gifts, living expenses, and dispute resolution (usually mediation)
Joint obligations, such as mortgages or leases, do not automatically create inheritance or property rights. Each partner should also maintain a valid will to protect their interests under state law.
Reasons Older Adults Choose to Stay Legally Single
Many seniors avoid remarriage due to potential impacts on:
- Social security benefits
- Pension rights
- Alimony (from previous divorce settlements)
- Tax consequences
- Rights of survivorship
Additionally, a new spouse’s income might affect a child’s eligibility for college financial aid or government assistance, especially if the child has disabilities.
How Estate Planning Attorneys Help Cohabitating Couples
Estate planning attorneys can:
- Draft legally binding living together contracts aligned with existing estate plans
- Make necessary updates to reflect relationship or financial changes
- Help avoid conflicts among partners and heirs
Open communication between partners and adult children is vital to prevent misunderstandings, especially as unmarried partnerships become more common. Proper estate planning tailored to cohabiting couples protects both partners and heirs by legally securing asset distribution and inheritance rights.
We hope you found this article helpful. If you’d like to discuss your particular situation, please visit our contact page or call us on 501-834-2070 to schedule a consultation. We look forward to the opportunity to work with you.