Many couples decide to live together without getting married. Cohabitation is becoming more popular for several reasons, including the freedom to end a relationship without going through a divorce. However, unmarried couples who separate are not afforded the same rights as married couples. Therefore, it is important to understand what property rights an unmarried couple has in New Jersey to protect your best interests when cohabitating with a partner.

Is Common Law Marriage Recognized in New Jersey?

No, New Jersey does not recognize common-law marriage. Therefore, even if you have lived with a partner for years as if you were married, you are not legally married. If you separate, you will not have the same property rights as a married couple or domestic partners.

Unmarried Couples Have Limited Property Rights in New Jersey

Unmarried couples have joint property rights in assets that they own together. Therefore, if you and your partner purchase real estate and title it in both names, you each own an interest in it. The same applies to other assets, including bank accounts and vehicles titled in both names.

New Jersey affords domestic partners rights that unmarried couples do not enjoy. However, registered domestic partners do not have the same rights to equitable distribution as married couples.

How Do Married Couples Divide Property in a New Jersey Divorce?

New Jersey applies equitable distribution in divorce cases to divide marital assets. Parties can negotiate a property settlement agreement that divides marital property. However, if the couple cannot agree on terms for property division, the court will decide them.

Equitable distribution does not mean equal. The court divides the marital assets based on what is fair. “Fair” sometimes may mean a 50/50 split of marital assets. In other cases, the court may determine that an unequal property division would be fair.

The court considers several factors when determining what is fair for dividing assets in a divorce. The judge considers the marriage’s length and each spouse’s resources and income. The judge may also consider the standard of living during the marriage, the value of assets, and other factors.

What Can Unmarried Couples Do to Protect Property Rights?

Unmarried couples should discuss property rights early in the relationship to avoid problems if they separate. They should also discuss how debts will be handled during the relationship and if they separate.

A cohabitation agreement is a legally enforceable contract between unmarried partners living together. It outlines the responsibilities and rights of each person. A cohabitation agreement can address numerous issues, including:

  • Defining separate property that will not be subject to division if the couple separates
  • Address how jointly acquired property will be divided in a separation, including equitable distribution
  • Stipulate how funds from the sale of joint assets are to be divided between the parties
  • Determine how to treat future purchases obtained during the relationship
  • Define shared expenses and individual contributions to household expenses
  • Whether a party will pay financial support (i.e., palimony)
  • The ownership of pets after a separation
  • The division of joint debts acquired during the relationship

A cohabitation agreement can address other matters, provided that the terms do not violate public policy, such as inheritance, the right to make medical decisions for a partner, and power of attorney to act on behalf of a partner.

Do I Need an Attorney to Draft a Cohabitation Agreement in New Jersey?

Cohabitation agreements must meet the requirements to be enforceable in court. Those requirements are:

  • The cohabitation agreement must be in writing.
  • Both parties must voluntarily sign the agreement without undue pressure from the other party.
  • The terms of the agreement must be generally fair to both parties.
  • Before signing the agreement, both parties must fully disclose their assets, income, and liabilities.
  • Providing false information can nullify a cohabitation agreement.
  • If the agreement includes palimony, each party must have legal advice from a separate attorney before signing the agreement.

When drafting a cohabitation agreement, each party should have separate legal counsel. This protects both parties’ rights and best interests. Hiring an attorney also ensures that the agreement complies with the law and is enforceable in court.

Contact the Bergen County Family and Divorce Law Firm of Arons & Solomon Divorce Lawyers for more help

Contact the experienced family attorneys at Arons & Solomon Divorce Lawyers today for legal assistance. Visit our law office in Bergen County or give us a call at (201) 487-1199 to schedule a free consultation with our team.

Bergen County Law Office
1 University Plaza Dr #400, Hackensack, NJ 07601, United States