According to data from the National Center of Health Statistics, Millenials and Gen Xers are increasingly living together, rather than get married. The Journal of Marriage and Family also notes that there is a rise in cohabitation in older adults because there are economic benefits of simply living together. It allows older unmarried couples to maintain Social Security benefits from a deceased spouse and protects them from having to assume liability for their partner’s debts.
As this trend toward cohabitation increases, it raises questions about the implications for family law and the division of property. Wisconsin does not recognize “common law marriages” — which means that it does not recognize couples who simply live together as a legally “married” couple. So what happens to the division of property and assets when a cohabitating couple separate?
As concerns assets and property, for the most part it is assumed that each partner has his/her own property and debts — individual bank accounts, savings accounts, retirement plans and property and assets obtained by an individual will remain with the individual who acquired it. However, the Wisconsin Supreme Court did rule that while the property division statute of Wisconsin’s divorce statute does not apply to cohabitating partners, if a partner can prove a viable claim for “unjust enrichment” the partner can petition for a civil court case to determine the equitable division of assets.
In general, neither partner is entitled to receive alimony-type support.
Unmarried couples can draft living together agreements that outline how property, home, assets and bills will be handled in the event of a separation. If the document is properly written, it can be legally enforceable and may minimize the need to seek court intervention in the event of a separation.
