In Illinois, cohabitation without marriage does not grant the same legal protections as marriage. Unlike married couples, unmarried cohabitants have no automatic rights to property division, spousal support, or inheritance upon separation or death unless specific legal agreements or actions are in place.
Key Fact Regarding Illinois Cohabitation
In Blumenthal v. Brewer (2016), the Illinois Supreme Court reaffirmed that cohabitants can use contracts to protect property interests, but without an agreement, courts will not imply marital-like rights. A cohabitation agreement avoids this issue.
Strategies to Protect Yourself Financially
Create a Cohabitation Agreement – A cohabitation agreement is a legally enforceable contract between unmarried partners that outlines financial and property arrangements during the relationship and upon separation. In Illinois, such agreements are upheld if they meet contract law requirements (offer, acceptance, consideration, and mutual intent).
What to Include in a Cohabitation Agreement
- Property Ownership – Specify how real estate, bank accounts, vehicles, or other assets are owned (e.g., joint tenancy, tenancy in common, or individual ownership).
- Financial Contributions – Detail who pays for rent, mortgage, utilities, or other expenses, and whether contributions create ownership interests.
- Debt Responsibility – Clarify liability for shared or individual debts (e.g., credit cards, loans).
- Separation Terms – Define how assets and debts will be divided if the relationship ends, including whether one partner compensates the other for contributions (e.g., to a home or joint expenses).
- Support Obligations – State explicitly that no spousal support is owed, or outline any agreed-upon support.
- Consider Adding a Will or Trust – Unmarried couples should have a plan in the event a partner dies:
- Create a will or revocable trust naming your partner as a beneficiary for specific assets. A will can bequeath your share of a jointly owned home or bank account. A trust will bypass probate.
- Update life insurance, retirement accounts (e.g., 401(k)), or payable-on-death (POD) bank accounts to name your partner as beneficiary. These designations override a will and ensure direct transfer.
- Execute a financial power of attorney to allow your partner to manage your finances if you’re incapacitated. A healthcare power of attorney ensures they can make medical decisions on your behalf.
Observe Legal Requirements
It is crucial to hire an experienced family law attorney to draft or review a cohabitation agreement to ensure compliance with current law. It is advisable for both parties to have independent counsel to avoid claims of coercion or unfairness in the event of separation and provide full financial disclosure. After the written agreement is finalized, both parties will sign, notarizing the document for added weight with a plan to update the agreement periodically as needed. Contact the family law office of Ronald L. Bell & Associates to schedule a consultation at 847-495-6000.