Cohabitation Agreements | Living Together in WA State

How to Cover Your Bases When When You’ve Chosen Cohabitation

By Monica Cary on Thursday, March 26, 2015

Modern love brings us the choice and freedom not to marry. I was just reading a Pew Research Center report that states the average age of a first marriage is 27 for women and 29 for men, apparently a record high. That means a lot of people are choosing to cohabitate before marrying.

Among the loads of factors couples consider when deciding whether or not to marry, a big factor is cost. The average cost of a wedding is about $25,000 – and then there’s the ring. It’s not surprising that more couples consciously choose to opt out of marriage and live together. Many couples are even buying a home together.

Cohabitation Laws in Washington State

Here’s the thing – even if you decide not to marry – Washington state law doesn’t really let you “unsubscribe” (if you will) to marriage. Cohabitation is not a legal pass. It’s a little like the experience of trying to get off of a bad list serve or email blast. You think, “Wait – didn’t I already unsubscribe?” But, somehow they keep finding you.

Washington state law imposes rights and responsibilities on couples who live together if the relationship is determined to be a committed intimate relationship. So, even if you ditch the diamond for a Jamie Joseph and ditch the dress for a down payment, you might suddenly find yourself married-ish in some ways and not in others. From a legal standpoint, the nature of an unmarried couple’s relationship is fraught with uncertainty.

Cohabitation Agreements are a Great Option

But you can be more certain. There’s a great legal instrument you can use. It’s called a cohabitation agreement and provides you with a clear blueprint.
Here’s how it works: together, the two of you define your relationship by deciding what rights and responsibilities you want to share with one another and what you want to keep separate. While it may sound counter-intuitive, the structure provided by a cohabitation agreement can provide a beneficial foundation that promotes greater trust and openness.

Common Cohabitation Agreement Scenarios

Here are several common situations a cohabitation agreement can address:

If one person earns significantly more or one more person has a greater debt load, the agreement can ensure that separate income and separate debt remain separate.
If one person has previously purchased real estate or contributed more to the acquisition of real estate, then the cohabitation agreement can protect the separate interest and also provide a framework for how to pay to maintain the home.
For older couples, a cohabitation agreement can help in creating commitments while avoiding the risk of losing pension benefits.
Finally, a cohabitation agreement is a really good idea for couples who are not married, but where one person stays home to raise children.

As Mae West said, “Marriage is a great institution, but I’m not ready for an institution.” Just be sure that if you’re shacking up, you’ve really unsubscribed.

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Returning Home: Keeping the House You Brought to Your Marriage When You Divorce

By Amanda DuBois on Monday, December 8, 2014

Here at DuBois Cary we have many clients coming in for divorce consultations who have been dealing with extremely difficult spouses for a very long time and have finally had enough. It is our job to help that client navigate her or his way out of a destructive relationship and back onto a path that includes the self they knew before they got married, or that existed inside the marriage for a while but got lost along the way.

Often these clients are older – in their 50’s or 60’s – and have no children together, or have children that are grown and gone from the house. Often the spouse who is being damaged most by the bad relationship came into the marriage with money and a home, and got married to someone with a lot less. The original intention was one of open generosity and an opportunity to build a life together. However, the real result is that the other spouse has been taking advantage of the generous spouse. It is a painful realization, but also a healthy one when a client recognizes that, through divorce, he or she can be whole again.

Our firm helps clients hang onto the assets they brought with them into the marriage, as well as emotionally and legally divorce from the difficult spouse in a way that aligns with values and expectations for life ahead, whether a client is at the peak of a career, planning retirement, or is in retirement now.

Imagine for a moment, finally having one’s house back – a house one had brought into a marriage many years ago. Imagine that once again that house is full of peace and quiet. This is just one of many small victories our clients often realize after they divorce.

If you would like to return to what matters most to you and still retain the financial independence that you had when you became married, we can help. Please feel free to call us for a consultation. We have offices in Seattle and Bellevue, and offer pre-divorce consultations, as well as a full suite of family law services, including will and estate planning.

Seattle: (206) 547-1486

Bellevue: (425) 279-7863

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What You Need to Know About Co-Owning a Home Without Getting Married in Washington State

By Monica Cary on Thursday, May 22, 2014

So you want to buy a place with your boo, but you’ve both been burned before. Marriage equality is great, but it’s not for you.

Or you’ve owned your own dream home for a long time and your sweetie has been living there with you, and you want to give her ownership. Well, there are a few options to consider.

You could quit claim one-half of the home to your significant other by quit claim deed. You can co-own the home as tenants in common (TIC) or as joint tenants with right of survivorship (JTROS). There are multiple significant legal consequences to either of these decisions. Getting advice about your particular situation is worth a few hundred dollars for a consult.

For example, in Washington state, we do not have common law marriage, but we do have a legal creature called Committed Intimate Relationships (CIR). Over the years, you may have become a partner in a CIR without even realizing it. Transferring ownership of your property may solidify your CIR in a way that will change your rights and responsibilities forever.

And depending on the type of transfer, undoing things can be more cumbersome than Kim Kardashian’s bedtime make-up removal routine.

If that doesn’t scare you, you’re probably in a stable happy relationship (which is wonderful). Before you change the ownership of your property, you’ll want to sit down and figure out what’s driving this change in ownership and how comfortable you are with this change becoming permanent. Specifically, you’ll need to determine what you want to happen to your interest when you die. Do you want to be able to privately and freely change who receives your interest in your will? Or not?

You should also consider entering into a co-ownership agreement. At a minimum, you really should have a conversation about who is going to pay for major repairs, who is going to clean the gutters, who is going to pay the mortgage, who is going to pay the utilities… you get the idea.

You each should consult with separate counsel before changing ownership of your assets.

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What’s Considered Separate Property in a Washington Divorce?

By Amanda DuBois on Thursday, September 5, 2013

In Washington State (and not all states are the same), separate property is recognized and taken into account in divorce proceedings. Separate property is exactly what it sounds like: the separate assets owned by each spouse before marriage.

Separate property also includes gifts and inheritances even if they are received during the marriage.

Here’s an important point about getting separated from your spouse that most people don’t know when they enter a divorce: in Washington, any assets, or money earned after the date of separation is also considered separate. So, it’salways a good idea to open a new bank account when you separate. That way the money you earn after separation does not get co-mingled with community money. If it does, it can be difficult and expensive to trace.

Separate property is treated differently than community property (the property held jointly in your marital estate). So if you’re thinking about getting a divorce, one of your first jobs will be to identify which assets were owned before your marriage as well as any gifts or inheritances either of you may have received during the marriage.

Most of the time, separate assets will not usually be divided in the divorce. However, in long term marriages, those that have lasted over twenty years or so, the courts often will take into consideration the existence of separate property when dividing assets in a fair and equitable manner.

Sometimes people mix their separate and community assets while they’re married. This is called co-mingling. Keeping track of what you had when you got married may help you to untangle your commingled assets in the event of a divorce. Often, once the assets are co-mingled, it is too late to make a separate property claim because the assets can’t be traced. When this issue arises, it is best to hire a lawyer and ask them to help you contact a forensic accountant to trace this money. In order to do this, you need good proof of the existence of the money, whether it was pre-marital or an inheritance or a gift.

Now you can see why it would have been a good idea to take the necessary steps to protect the assets you brought into the marriage. But here you are now, and you either did or didn’t protect yourself.

If you have a pre-nuptial agreement, you may want to consult a lawyer to see if it is enforceable. Often pre-nups are not properly drafted and can be set aside. Also, it’s a good idea to have your pre-nup reviewed by a lawyer if you feel it was not fair in the first place, or is no longer fair given the circumstances that arose during your marriage.

If you are in a situation where one party had separate property and did not keep it separate, you may also want to consult a lawyer to see if it can be traced. Keep in mind, even if you paid the mortgage on your spouse’s separate property, it may still keep its character as separate property.

The issue of separate property can be confusing, but since the stakes can be high, so you may want to consult a lawyer to discuss this issue.

Partner Amanda DuBois has a deep understanding of separate property issues and agreements. Feel free to call the DuBois Cary Law Group if you would like to schedule a consultation. (206) 547-1486.

Local Seattle Divorce Attorneys

DuBois Cary Law Group
927 North Northlake Way
Suite 210
Seattle, WA 98103

(206) 547-1486

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7 Divorce Tips for the Owner or the C Suite

By Amanda DuBois on Friday, August 9, 2013

1. If you are thinking about divorcing and your marital property includes owning a business, you’ll definitely need a business valuation expert.

Be sure your lawyer has a good relationship with that expert so that your case will get high priority treatment.

2. If you are a senior executive, you have benefit packages that must be disclosed.

You’ll also have stock options or awards that have to be considered in your divorce–and there should always be a determination early in the process as to whether the stock is a separate or community asset.

3. You have a demanding lifestyle.

When you gather your legal team, you’ll want a law firm that understands what it took to attain your position, and a clear understanding that you must continue to be available to handle the demands of your career even though you are going through a divorce.

4. You need a team that supports focus.

Your legal team needs to understand the importance of you maintaining focus. The stress of a divorce should not be confounded by having a legal team that does not understand the burden of a career with heavy responsibilities. Evening and weekend availability of a legal team is a must for business owners and high level executives going through a divorce.

5. Your lawyer should be experienced in high asset cases and have the relationships that prove it.

She should have solid access to business lawyers who have significant expertise in drafting the legal agreements you will need to split businesses or to go forward in your own business as a non-married owner. Buy-out provisions in high assets business cases typically require business lawyers with specific expertise in this area.

6. Your forensic accounting team should work hard for you.

They will analyze and present your financial data and help determine the tax consequences of various settlement possibilities. You’ll need a future earning stream analysis to demonstrate how the lower wage earning spouse can take care of him or herself into the future.

7. Your divorce attorney should have a vocational expert available.

You and your attorney will need to determine the best way to get the lower wage earning spouse back into the job market if that seems to be a reasonable possibility. These analyses are very helpful to the judge should your case end up in trial and you want to make an argument about future employment of the opposing party, or even yourself, if you are the lower wage earner.

The bottom line is that high asset cases not only require a family law attorney who is experienced with these cases, but an entire team of experts who should be readily available to answer your questions and work with your lawyer to provide creative and workable solutions to your unique situation. Be sure you hire a lawyer who has been practicing in this area for several years, They are likely to have longstanding relationships with good lawyers and forensic experts who know how to provide top notch service.

For a consultation, please contact DuBois Cary owner and partner Amanda DuBois. (206) 547-1486.

DuBois Cary Law Group
927 N. Northlake Way
Suite 210
Seattle WA 98103

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Seattle Prenuptial Agreements

By Monica Cary on Tuesday, May 28, 2013

When people hear about prenuptial agreements, most of them think of famous and wealthy people. But a prenuptial agreement is simply an agreement that a couple signs before they get married. Sometimes it’s called an antenuptial agreement. An agreement like this usually contains a list of all of the parties’ assets and who owns what at the time of marriage.

Most prenuptial agreements are used by people with assets at the time they marry. “Prenups” typically spell out how the couple will handle financial decisions during marriage. They may also decide how property would be distributed if there is a divorce. Prenuptial agreements are typically used by people with substantial assets or those who have children by a prior marriage and want to be sure that their assets are passed on to their children.

For example, how does one spouse get legal and financial protection so that in the event of a divorce that spouse gets credit for using personal, hard-earned money to pay the mortgage payments on the other spouse’s house? In this situation the spouse should consider contacting a lawyer before marriage to consider a prenuptial agreement that addresses this issue. In the prenup the owner spouse might agree that the value of the house at the time of the marriage is his or hers, but any value added after marriage would be considered marital property.

It’s important for someone with assets to get legal advice if he or she is planning to marry. Conversely, if someone with few assets is marrying someone with assets, that person should seek legal advice to find out what would happen in the event of divorce. No one should commingle their separate assets by putting them in a joint account. It’s best to keep such assets in a separate account and not add any assets (including wages) to that account once married.

New accounts can always be opened after marriage and if someone wants to give the marital community a gift of separate property, they can deposit their separate money into their new account. The issue of separate property can be confusing, but the stakes are high, so people with assets, or people marrying someone with assets, should consult a lawyer for a prenuptial agreement. Naturally, at the time of marriage no one expects to get a divorce, but it’s better to be safe than sorry.

Prenups are tricky documents. It’s a good idea to get legal advice if you are thinking of entering into a prenup.

Seattle Divorce Attorneys and Seattle Family Law Attorneys. Our Main Office serves Greater Seattle, Bellevue, Redmond, Kirkland and Mercer Island

DuBois Cary Law Group, PLLC
927 North Northlake Way
Suite #210
Seattle WA 98103

(206) 547-1486

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Domestic Partnership Agreements

By Amanda DuBois on Friday, May 24, 2013

How unmarried couples can strengthen their relationships by privately defining their relationship under the law.

A Property Status Agreement or Domestic Partnership Agreement (“the Agreement”) is an enforceable contract created between two people that allows them to legally define the boundaries of their relationship. The Agreement sets forth the couple’s intentions and clarifies each person’s rights and obligations within their relationship. In some respects, unmarried couples defy the underpinnings of the law. So, if a couple splits up or if one party dies, it can be a legal mess.

So, the Agreement can become very useful in the future because it provides a present-day snapshot of the couple’s intentions as to how they want to share and separate their property. It is critical that couples consult with counsel when preparing an Agreement because Agreements are binding in Washington and there can be very significant legal consequences. It is imperative to stay informed.

The Agreement generally includes an inventory of property, accounts, and assets. The inventory will include information as to what was acquired before the relationship began, what was acquired during the relationship and the couple’s intentions regarding ownership of the property.

For example, even if only one person’s name is on the legal title of the family home, the couple can explicitly set forth their intent to share ownership in the Agreement. The Agreement can also include explanations for the couple’s intentions around ownership of inherited property and how the couple intends to share future income.

Unmarried couples face a unique vulnerability under Washington law. But, you can take steps together to legally define the terms of your relationship. And, taking the time to sit down together to actively make legal commitments to one another can ultimately strengthen your relationship while maintaining your autonomy and privacy.

Seattle Divorce Attorneys and Seattle Family Law Attorneys

For a consultation today call (206) 547-1486.

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Seattle Divorces and Community Property

By Amanda DuBois on Thursday, May 23, 2013

Separate and Community Property

There are two systems by which married people own property. In almost all states, married people own property under a system called separate property. A minority of states subscribe to the community property system. Washington State is one of those states.

In separate property states, each spouse owns, in his or her own name, all property acquired by them before or during their marriage. In these states, each spouse can control their own property in whatever way they choose.

However, just because each spouse owns separate property doesn’t mean that upon divorce the property is distributed along the lines of who owns what. Courts essentially apply the reasoning to the distribution of assets in both separate and community property states; the court must determine a fair and equitable distribution of all marital property.

The concept of community property is in effect in Washington State. In community property states, each spouse owns a one-half interest in all of the marital community property. Community property is defined as all property acquired during marriage that was not received as a result of inheritance or gift. This includes all wages earned and all property purchased (such as a house, stocks, boats, etc.) during the marriage.

The philosophy behind the community property concept is that a marriage is like a partnership; both parties bring various skills to the partnership, so each should benefit equally from the benefits of the marital partnership. Likewise, each party will be held responsible for any debts of the partnership.

Although every state has its own laws, the general method for determining what is an equitable distribution of the marital property is to apply the following types of factors:

The duration of the marriage
Antenuptial agreements of the parties
The age, health and employability of each spouse
The lifestyle enjoyed by the parties during marriage
All sources of income of each spouse
The opportunity for future acquisition of assets by each party
The economic circumstances of each spouse at the time that the property distribution is to become effective.

Based upon the above statutory factors, courts must consider all of the marital assets and divide the assets in what it determines to be a fair and equitable way. Oftentimes, a non-working spouse is awarded a greater percentage of the assets because the court determines that the working spouse is better equipped to acquire assets in the future than the non-working spouse.

In addition, the courts look to the lifestyle enjoyed by the parties during marriage and distribute the property in a way that best allows the parties to maintain their standard of living. In many cases, this means that the lower wage-earning spouse receives a larger portion of the marital assets in order to make up for the parties’ unequal earning capacity.

To consult with one of our local Seattle divorce attorneys, please call (206) 547-1486.

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