Crystal Wright | December 6, 2024 | Property Division
During a divorce, spouses are required to divide marital property. Georgia uses equitable distribution to divide marital assets during a divorce. If the spouses cannot decide how to divide the assets, the court decides what is fair for property division, given the evidence in the case.
Unmarried couples do not have the same rights as married spouses who file for divorce. Unfortunately, the absence of legal rights can cause confusion and disputes regarding property if an unmarried couple decides to separate.
How Does Georgia Law View the Legal Connection Between Unmarried Couples?
Many unmarried couples view cohabitation as common law marriage. They believe that if they separate, the court will afford them the same rights as a married couple. However, this is not the case. Georgia abolished common law marriage years ago.
Georgia views unmarried couples as individuals without an actual legal connection. Unless there is clear evidence that the property is jointly titled or a partner invested in the property, the court is likely to award the asset to the partner holding title or who paid for/acquired the property.
Jointly Titled Real Estate and Unmarried Couples
Unmarried couples may decide to purchase a home together. They pool their money to afford the mortgage payments and homeowner expenses. However, what happens to the home if the couple decides to go their separate ways?
If both partners are on the title to the property, they could sell the property and divide the profits. One partner could purchase the other partner’s equity and title the property solely in their name.
However, if the partners disagree about what to do with the home, a partition action might be required. One of the partners can file a partition action in Superior Court, asking the court to resolve the problem. In many cases, the court orders the property to be sold and the equity to be divided based on each person’s contributions to the property.
A partition action can be time-consuming and costly. An unmarried couple can avoid this if the partners enter into a Joint Property Ownership Agreement. The agreement is legally binding when drafted according to Georgia laws. The agreement identifies each party’s interest in the home and what happens if the parties separate.
The agreement can also include rules for renovations, paying bills, making repairs, and other matters related to the property. The agreement should also include a process for resolving disputes related to the property.
Drafting a Cohabitation Agreement for Unmarried Couples in Georgia
A Joint Property Ownership Agreement only addresses a home or other property with a joint title. However, an unmarried couple can enter into a cohabitation agreement to address all financial issues they may encounter.
A cohabitation agreement details what will happen to property and assets if the couple decides to separate.
Cohabitation agreements are generally enforceable in Georgia if they:
- Are not signed under duress or fraud
- Are not signed because of a mistake or misrepresentation
- Are not unconscionable
- Are not unreasonable or unfair because of a change in circumstances since the agreement was signed
Before entering a cohabitation agreement, unmarried couples should communicate honestly and openly about their finances. It helps to create an inventory of assets and debts for each partner. The discussion should also include each partner’s expectations regarding financial responsibilities and rights.
What Can a Cohabitation Agreement Cover?
Most matters related to financial issues can be included in a cohabitation agreement. However, child support would not be included in an agreement because Georgia has specific child support laws that determine a parent’s financial obligation.
Examples of matters that can be included in a cohabitation agreement include:
- What happens to a home if the parties separate
- How cars and real property will be titled
- Who pays for bills and expenses
- How business interests will be divided
- Whether either party agrees to pay financial support to the other party upon separation
- Estate planning matters
- Who pays for medical insurance
- The process for making major financial decisions
- Whether the couple will have a joint bank account or joint debts
- Disposition of family heirlooms and inheritances
- Employment expectations for each party
- Agreements about pets
- Who is responsible for current and future debts
- A process for modifying the cohabitation agreement
The cohabitation agreement is a framework for handling finances when a couple is unmarried. If the relationship ends, it also helps protect a party’s assets and interests.
Get Help With Cohabitation Agreements in Georgia
A cohabitation agreement is a complicated legal document. It must be drafted and executed correctly to be enforceable. If you are living with someone and want to discuss a cohabitation agreement, schedule a confidential consultation with a Lawrenceville cohabitation agreement lawyer.
Contact the Divorce Lawyers at Crystal Wright Law To Get Legal Assistance Today
To learn more and get the help you deserve, call our divorce & family law firm at (404) 594-2143 or reach out to Crystal Wright Law online by visiting our contact us page.
You can also visit our law firm at 440 S. Perry Street Suite 105, Lawrenceville, GA 30046.