Cohabitation – Do I have an Interest in Property & Can I get Support?

Imagine being in love but not getting married.  You want to buy a house with your partner, but, because of credit issues, can only put the title of the home into your partner’s name.  To qualify your partner for the loan, you cash out parts of your 401k to put a down payment on the house and to pay down  the other party’s debt to qualify for a loan. 

 

Over the next several decades, your partner moves up the corporate ladder and has significant earnings. You stay home and take care of the house.  When you split up, what rights do you have to the house, other property, support payments?

 

With that scenario in mind, let’s explore some questions about the rights of the non-working partner who also does not appear on the house title.   

CAN I GET FINANCIAL SUPPORT?

 

The support issue in Minnesota in Minnesota is an easy one.  Palimony is a term that is used for alimony that is paid to an unmarried partner.  It is like alimony without marriage.   The term was “palimony” was made famous by a case involving actor Lee Marvin and his long-term partner.  It has been litigated in high profile cased between other stars like Clint Eastwood and Sandra Locke as well as NBA player Blake Griffin and his ex-Brynn Cameron.

 

As a reaction to such cases, Minnesota passed a law in 1980 that is called the Anti-palimony law.  Minn. Stat. 513.075.  It does not preclude palimony from being paid.  However, it does require that parties have a written agreement for any palimony or division of property to be enforceable.  The statute remains dated and out of step with the times in that it still refers only to relationship between a man and woman.  It states that if sexual relations between the parties are contemplated, a contract between a man and a woman who are living together out of wedlock is enforceable regarding property and financial support if:

(1) the contract is written and signed by the parties; and

(2) enforcement is sought after termination of the relationship.

 

Such an agreement is called a Co-habitation agreement. It is a contract that defines the rights and responsibilities of the cohabitating parties should their relationship end.  

 

WHAT ABOUT HOUSE?

 

Minnesota also has a law that is referred to as the Statute against Frauds. Minn Stat. 513.05.  It requires that certain types of agreements must be in writing.  This includes any agreements longer than one year related to the leasing or sale of land. The writing can be another a memorandum or, perhaps even correspondence memorializing the agreement. In other words, oral agreements are not enforceable. In the absence of an agreement, the real estate is presumed to belong to the title holder.

 

That does not, however, preclude a party from seeking compensation for unjust enrichment. Unjust enrichment is the cause of action that is not included in statute but exists as an equitable claim based on historic case law. Unjust enrichment occurs when one person is allowed to profit at another’s expense without making restitution for the reasonable value of any profit or services that have been unfairly received or retained.  To establish a claim for unjust enrichment, a claimant must show that another party knowingly received something of value to which he or she was not entitled and that the circumstances are such that it would be unjust for that person to retain the benefit. 

 

In the example above, the downpayment on the house may be an example of unjust enrichment. It may be possible to recover the value of any direct contributions to the property. It may also potentially include general contributions to the acquisition of the assets such as paying down the other party’s debts to acquire the property, but the law is less clear on that point.

 

AGREEMENTS PREFERRED

 

Conflict and litigation can always be avoided by contemplating the relationship in advance and executing well crafter co-habitation agreements.