Cohabitation Agreements vs. Domestic Partnerships: What’s the Difference?

Living with a romantic partner without getting married has become increasingly common for various reasons. Many unmarried couples who live together choose to enter into some sort of formal arrangement to protect themselves and their relationships. Cohabitation agreements and domestic partnerships are two distinct mechanisms that allow this.

If you’re contemplating whether one of these is right for you, it’s important to understand the key aspects of each. State law also plays an important role in these arrangements, so you’ll ultimately want to work with a qualified family law attorney licensed in your state. They can explain your options so you can determine your best course of action.

In this article, we’ll explore some of the fundamental principles behind domestic partnerships and cohabitation agreements. While they may seem similar, there are several differences to keep in mind.

Cohabitation Agreements

A cohabitation agreement is a legal document that unmarried couples may create when they live together. It's a private contract between two unmarried partners.

These agreements typically spell out how the cohabitating couple will handle their finances, property, and other important matters while they're living together. It can also address what happens if the relationship ends.

Essentially, the agreement can include whatever terms you want, as long as they're legal. Some things couples may address in a cohabitation agreement include:

• Payment of rent and other living expenses
• Property ownership (like real estate, furniture, or cars)
• Child custody/child support arrangements
• Property division if the couple splits

Cohabitation agreements can be helpful in preventing later disputes. They also provide some legal protection for cohabitating partners, even though they're not married.

A cohabitation agreement won’t change your legal status or relationship in the eyes of the law. But it can generally cover what you and your partner agree to include in the document.

Domestic Partnerships

A domestic partnership, on the other hand, is a legal status recognized by the state. It refers to a relationship between two people who live together and share a domestic life but aren't married.

Domestic partnerships were originally created to give same-sex couples some of the rights and benefits of married couples before same-sex marriage was legalized. You usually have to register with your state or local government to become domestic partners. This registration changes your relationship status and allows legal recognition of it, which impacts your legal rights.

However, not all jurisdictions recognize domestic partnerships. Those that do allow them for heterosexual couples as well as same-sex couples.

The benefits and rights associated with domestic partnerships can vary by state. They might include:

• Shared health insurance privileges
• Life insurance beneficiary rights
• Healthcare decision-making for a partner
• Community property rights
• Joint state tax returns

Although some states’ laws recognize domestic partnerships, federal law doesn’t. This means that couples in state-recognized domestic partnerships don’t enjoy federal benefits like married partners. For example, joint federal tax filing isn’t available for domestic partners.

Which One Is Right for Us?

State law will largely dictate your options with respect to domestic partnerships. Still, you may not be sure whether one of these arrangements can meet your needs. As you work toward identifying your best course of action, you’ll want to keep additional distinguishing features in mind.

Purpose

Couples generally enter into cohabitation agreements to protect each person's individual interests and clarify expectations in the relationship.

Domestic partnerships, on the other hand, are designed to provide legal recognition and some marriage benefits to unmarried couples.

Legal Weight

Cohabitation agreements are legal documents. However, poorly drafted ones that don’t satisfy relevant legal requirements may not be enforceable in court.

Conversely, domestic partnerships are recognized legal relationships. As such, the rights and responsibilities that come with them are generally enforceable by law.

Taxes

A cohabitation agreement won’t affect your taxes. Parties to these agreements still file as single individuals.

Some states allow domestic partners to file joint state tax returns. But even when this is the case, the domestic partners still have to file federal taxes as single individuals.

Ending the Arrangement

Like other contracts, a cohabitation agreement ends when the parties decide to end or when one of you moves out. No legal steps are required to end a cohabitation agreement

Ending a domestic partnership, however, often requires a legal process like divorce. Depending on the state, you’ll likely need to file paperwork to officially end the partnership.

Can We Do Both?

Yes. If a cohabitation agreement and a domestic partnership both present viable options for you and your partner, you don’t necessarily have to choose one. This is because legally recognized domestic partners may also enter into a cohabitation agreement or domestic partnership agreement that outlines various aspects of their specific relationship.

These are similar to married couples’ prenups or postnuptial agreements. They might cover:

• Financial responsibilities
• Property ownership
• Parental rights
• Financial support

Before entering into one of these agreements, however, domestic partners should work with someone familiar with their state’s laws. Some states have spousal support (formerly known as alimony) laws that apply to domestic partnerships.

For example, California law largely treats domestic partners like married couples regarding spousal support. If a domestic partnership ends, this means one partner may be required to pay financial support to the other.

Understanding Your Options

Despite their similarities, cohabitation agreements and domestic partnerships offer unique benefits for unmarried couples living together. Whether one or both are right for you will depend in part on your goals. A qualified family law attorney can help you understand these and other options that may be available to you.

Alternatives

For example, estate planning tools may provide you with alternatives if your goals center around inheritance rights. Likewise, a healthcare power of attorney might be the answer if you’re primarily concerned with making medical decisions for each other.

You may also be in a jurisdiction that recognizes civil unions or common law marriages. The comprehensive benefits of these arrangements generally align more closely with those of married couples.

Getting Legal Advice

Many factors contribute to identifying the arrangement that best suits your needs. Though navigating this legal landscape may be tricky, finding a credible family law attorney to guide you doesn’t have to be.

Findlaw’s directory of dedicated family law attorneys can get you started. Just click on your state to view contact information for local experts who can help. You can also narrow your search results by city if you prefer.

Either way, don’t go it alone. Make informed decisions about these important legal matters with a trusted advisor.