Protecting Property Interests of Unmarried Cohabitating Partners in Wisconsin
Wisconsin has well-defined and long-standing marital property laws provided to those who choose to marry. There are even circumstances where, due to the length of the marriage and other relevant factors, a spouse’s pre-marital individual property may convert into marital property, which is subject to division in the event of divorce.
But what legal protections are afforded to unmarried individuals with respect to property rights and financial obligations?
Unmarried couples who reside together, otherwise known as cohabitators, are neither subject to nor protected by Wisconsin’s marital property laws. As a result, cohabitators have far fewer legal options when a dispute ultimately arises over rights and interest in property. In pursuit of a remedy, legal theories such as implied contract, unjust enrichment, and partition are frequently utilized in civil court with limited success.
What Type of Property Dispute Situations Arise Between Cohabitators?
It will depend on the couple’s situation, including whether one party individually owned property prior to the relationship, or whether the couple jointly acquires property during the course of their relationship.
As an example, a person may move into a residence of the other partner, owned individually from prior to the relationship. If the non-owning partner financially contributes to the property (e.g., mortgage payments, property taxes, large repairs or renovations, monthly expenses and maintenance), the non-owning partner may feel they have a claim for equitable rights in the property or seek reimbursement for such contributions. The property-owning partner may dispute such financial contributions or that any reimbursement is owed to the non-owning partner.
This is only one of the many unforeseen cohabitation scenarios that could ultimately require court involvement, extensive discovery, and creative legal solutions. Furthermore, as is frequently the case with divorcing parties who are required to divide marital assets and debts, heightened emotions due to the relationship loss can complicate matters further.
How To Stay Ahead of the Curve
The landscape of society has changed considerably and will continue to change with respect to relationships. With unmarried partners maintaining lengthy relationships, having children, and residing together more frequently than in the past – it is the responsibility of both partners to proactively consider and address any anticipated property issues. To explore options, it is crucial to seek advice from an experienced family law attorney, ideally, before a dispute arises.
Cohabitation Agreements
Recently, there is an increased interest in Cohabitation Agreements. A Cohabitation Agreement is a legal contract that sets forth property rights and the financial obligations of an unmarried cohabitating couple. The concept is similar to a prenuptial agreement in the event of marriage; a Cohabitation Agreement functions to minimize conflict in the event of separation. Most importantly, a Cohabitation Agreement can be tailored to your specific needs.
There are plenty of free resources and even some Cohabitation Agreement forms that can be found online. However, there is a risk that pre-drafted form agreements may not include terms specifically relevant to your situation. You will also want to make sure that the agreement will be considered an enforceable contract in the State of Wisconsin.
If you are unsure whether a Cohabitation Agreement is right for your situation or would like additional information to protect your property interests, we recommend consulting with a licensed attorney to learn more.
