Agreements to Share Expenses or Property

An unmarried couple living together can enter into an agreement to share expenses or acquire property. Generally, if an agreement between two people who are not living together would be enforceable, then a similar agreement between two people who are living together will be enforceable. The fact that two people are living together does not make the agreement automatically enforceable.

So, if two people wish to agree about how much each will pay for rent, mortgage, utilities, groceries, auto expenses, etc., the agreement can be valid and enforceable. If one party does not keep his or her end of the bargain, that person can be sued. If one member of the couple is suing the other, the relationship, of course, has fallen apart.

In some cases, an unmarried couple may be considered to have a business relationship as well as a personal relationship. The combined relationship can create legal rights. In an Oregon case, for example, an unmarried couple agreed to operate a ranch together and share equally in the profits and expenses of running the ranch. When the couple splits up, the partner who did not own the ranch was found to be entitled to an amount of money equal to one-half the increase in value of the ranch during the time the couple lived together and worked together.

As with any contract, if a person wants protection, it is best to make the agreements specific and in writing. An oral agreement might be enforceable, but it is much harder to prove.

In order to be valid, contracts usually need to have consideration. That means each party to the agreement should give some benefit to the other party, such as agreeing to pay a portion of expenses. If an agreement looks as though it is only creating a gift from one party to the other with the recipient giving nothing in return, the agreement might not be enforceable because of lack of consideration.