MORE PARENTS OPT TO SKIP MARRIAGE (Part Two: Property)

In our never-ending societal and economic evolution, it has become apparent that more and more people in our country are opting to not get married. While this fact is not necessarily a new culture shift in recent American history, it does have important ramifications when it comes to children and property. In the second part of this series, the issue of property accumulation with someone that is not your spouse will be discussed.

While there are paternity and maternity laws in place to deal with a child or children born to unmarried parents, there are no clear legal solutions as to what should be done when two non-married people break-up and they acquired property together. Under Arizona community property laws, certain principles apply in the dividing of property that was earned or acquired while married. These laws do not apply, however, when a couple separate their relationships that were not consummated with a marriage certificate. Even in the event of the breakup of a long-term relationship, this dilemma still presents itself an Arizona has never recognized common law marriage.
In the case of a break-up, hopefully the significant other that you have “given the best years of your life” will not turn into a colossal jerk and be unfair. Similarly, if you have a clear understanding (and a written agreement) the “other” will still be fair and divide items as you have agreed. If they are not being fair or refuse to stick to your agreement, your only recourse (except giving up and walking away) may be to sue for the property under a breach of contract claim in civil court.

To avoid this type of problem, I would suggest:

Step 1: Non-married couples are best served by discussing property ownership from the very beginning if they decide to start acquiring possessions together. As difficult as this may be when you are just starting out and think that things will never go south, it would be wise to have a clearly established understanding as to how you own and will deal with your material acquisitions if you ever go your separate ways.

Step 2: Put it is writing, especially for valuable (more than $500.00) items or items that have a strong emotional attachment (the dog, that painting that you got on your first vacation together). You would not believe the wars that I have seen waged over the puppy that you rescued at the pound.

Step 3: Sign the agreement. What the heck, some Judge some day, may even consider it a binding contract. While oral contracts are actionable in Arizona, they are oftentimes impossible to prove.

Step 4: Make two copies of everything, keep them in a safe place. It doesn't do you any good if you do steps one through three and them come home to find the property (and your copy of the agreement) gone.

Also remember that oftentimes, large purchase items like a vehicle, a home or a timeshare usually will be titled into somebody’s name. Make sure that the item is titled in the fashion that you want it to be owned. For example, you purchase a vehicle together, but because of credit reasons or a better financial rate, the dealer only puts it into one person’s name. There is nothing to prevent you from re-titling the vehicle into both party’s names after to own it. In this way, it is clear to the whole world who owns the vehicle. Do not get lazy here and plan to “take care of it someday” and expect the other to remember your agreement after you go your separate ways.

And lastly, remember this same advise applies when it comes to any debts you run up together! You should have clearly stated understandings, preferably in a signed, duplicated written document. Debts like leases or major purchases should be in both names, if that is what your intent was. Be careful of one party being the entire debt-holder unless you do not mind being solely responsible in the event of a break-up.