How to Cohabitate and Survive By William Dorich

Just 5 years ago, the U.S. Census revealed that 4.85 million couples were cohabiting, up more than 1,000% from 1960, when there were 439,000 such couples. Recent studies found that more than half of newlyweds lived together, at least briefly, before walking down the aisle. Some of those partners won't get married and many can't get married for various reasons. It is easy for these couples, even same-sex couples to get together, but it can be a legal disaster when they break up--as a majority of them do.

Who gets the season tickets? What personal gifts are considered separate property? What assets are created by the relationship? Who pays the taxes on income from joint assets? Who is responsible and who has rights to the children of these unions? And most important of all, HOW TO SPLIT UP.

As early as 2002, 10% of couples were cohabiting in the United States compared to 3% in Japan and Israel. More than 17% cohabit in France and 22% in Australia.

There are many reasons that lead couples to decide to live together including wanting to test compatibility or establish financial security before marrying. Same-sex partners can avoid the higher income taxes paid by two-income married couples (in the United States), realizing little difference between the commitment to live together and the commitment to a marriage. Social Security and retirement benefits usually penalize the older couple getting married, and this weighs in the decision to live together.

Merle H. Horwitz, a Los Angeles attorney, wrote one of the first books on cohabitation in the early 1980s when living together began its upward spiral. Horwitz was ahead of the curve in understanding the legal entanglements that usually followed these relationships. His book gives couples a road map for getting together and splitting up and a contract that is acceptable in all states.
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