When you “Sort of” say “I Do” but not Officially

Marriages have hit an historic all-time low and with the unprecedented pandemic; many weddings have been delayed.  However, people are still moving forward living their lives together.  Unfortunately, many financial decisions are made and this can cause some problems because couples living together without being married are not protected by laws that would protect married individuals in a divorce.

 Few people go into a relationship planning for it to end someday; we want to believe in true love that lasts forever. Experience tells us that is not always the case, however, and having these conversations before it is too late can save you a world of problems later.

There are statutes, case law and Court Rules that protect the parties if a marriage ends.  Automatic restraining orders are one example where it prevents either party from spending or transferring any marital assets once a divorce is filed and served other than as necessary to pay things like reasonable living expenses and legal fees. It applies to all assets, including joint bank accounts. Unmarried couples, however, do not have the same protections, and the parties’ respective contributions to a joint bank account could be at risk.

However, that does not mean that unmarried couples are without options. While suggesting a “no-nuptial” or cohabitation agreement to your partner may not feel like the most romantic of gestures, it may be a necessary conversation to help mitigate the inherent risks of these situations. Similar to a pre-nuptial agreement, this type of legal document can spell out what happens in the event of a break-up.  Many unmarried couples who purchase a home together take title to the property in their joint names. A no-nup or cohabitation agreement can set forth the manner in which the property interests are handled in the event of a breakup, such as identifying which party will get the option to stay in the property and the terms upon which he or she can buy the other out. In the absence of such an agreement, the parties could be left trying to reach an agreement on these issues at a time when emotions are high on the heels of a breakup. If they are unable to agree, they are likely to find themselves in Court, litigating the matter through a Petition to Partition, with a sale of the property to a third party the most likely outcome.

If you have already opened joint accounts, purchased property or co-signed loans without an “if we break up” agreement in place, it’s not too late to have those conversations and put it in writing now. In addition to the items addressed above, these types of agreements can help protect the assets each person brought into the relationship and address what happens to assets acquired jointly during the relationship.

Having an attorney with the resources and knowledge to give you the best representation is vital to your interest and the interest of your family.  You also want to make sure they will exhaust all avenues and be willing to research, pursue and implement strategies to provide the best possible outcome.

Rob McAngus, Partner with Verner Brumley Parker, P.C., is Board Certified in family Law and his practice is devoted primarily to family law, including high conflict divorce, custody cases, and complex property issues. In addition to being selected on the Board of Directors for the Family Law Section of the Dallas Bar Association; he values your priorities as a parent and works with you to achieve the goals that will help transition your family to a new normal.  As both an adopted child and a member of a blended family, Rob can provide a unique perspective in the practice of family law.

Rob has been recognized in Super Lawyers as a Rising Star in 2016 through 2020, Best Lawyers, and recently The National Advocates recognized Rob as one of the Top 40 Under 40.  He can be reached by calling 214.526.5234 or email at rmcangus@vernerbrumley.com.  Mr. McAngus received his bachelor’s degree cum laude and master’s degree from Baylor University and graduated cum laude from the Dedman School of Law at Southern Methodist University.