Romantic commitments can take on many different forms. For some, it includes a marriage, but not for everyone. Many couples choose to build a life together without a legal marriage. While this decision can have personal and practical benefits, it also comes with financial and legal challenges—particularly in North Carolina and South Carolina. Without the legal protections that come with marriage, unmarried couples must take proactive steps to safeguard their financial interests and ensure their wishes are honored. Here are some key strategies for protecting yourself and your partner:
1. Create a Cohabitation Agreement
A cohabitation agreement functions like a contract between partners, outlining financial responsibilities, asset division, and other important matters in the event of separation or death. This document can help prevent disputes and ensure clarity about shared assets and debts.
2. Establish Joint or Separate Property Ownership
If you purchase a house or other real property together, consider how the property is titled or otherwise conveyed in the Deed. Options include:
- Joint Tenancy with Right of Survivorship (JTWROS): Ensures the surviving partner automatically inherits the property without the need of said property to go through the probate process.
- Tenancy in Common: Each partner owns a defined share, which does not automatically transfer upon death.
- Trust Ownership: A trust can be used to define property rights and succession planning.
3. Use Beneficiary Designations
Unmarried partners should ensure their partner is listed as a beneficiary on key accounts, including:
- Life insurance policies
- Retirement accounts (401(k), IRA, etc.)
- Payable-on-death (POD) or transfer-on-death (TOD) bank accounts
4. Draft a Will and/or a Trust
Without a will, North Carolina intestacy laws dictate asset distribution, typically excluding an unmarried partner. A properly drafted will can ensure your partner receives your intended assets. Additionally, setting up a trust can offer added privacy and control over asset distribution.
5. Execute Powers of Attorney
Unmarried partners do not have automatic legal rights in medical or financial decisions, regardless of the length or depth of a relationship. To ensure your partner can act on your behalf:
- A Financial Power of Attorney allows an agent to manage your finances if you become incapacitated.
- A Healthcare Power of Attorney gives an agent authority to make medical decisions on your behalf.
- A Living Will (Advance Directive) outlines your wishes for end-of-life care.
Final Thoughts
Individuals in long-term, committed relationships often desire the same financial and legal protections as marriage, but such protections require careful planning. Working with an attorney can help ensure your wishes are legally enforceable and that you and your partner are protected in all circumstances.
If you or somebody you know is in need of legal tools for unmarried partners, our team at Modern Legal is here to help.
Please note: these educational materials are based on North Carolina and South Carolina law where my legal practice is based. While the insights may have wide applicability, readers should consult with an attorney regarding the specific laws in their state or country.
Family is at the heart of everything I do, both personally and professionally. As a Family Law Attorney, I combine my passion for helping others with my unique journey—from growing up as the eldest child in a single-parent household to becoming the first attorney in my family. My experiences shaped my dedication to advocating for families in their most critical moments. Whether you’re building, protecting, or securing your family’s future, I’m here to help you find meaningful resolutions tailored to your needs.
