united-states contract-law real-estate
What are the benefits of a cohabitation contract in US in no-common law marriage state?
<p>After a number of years together, an unmarried couple in a no-common-law-marriage state decide to consolidate households.  The apartment renter (say $1000/mo) will move into the other's mortgaged house (say $2000/mo mortgage).  </p>

<p>They decide 1) to split the savings, which amounts to the rent on the apartment, thus the non-owner will contribute half of that rent ($500) towards the mortgage/taxes/whathaveyou, 2) split the utilities, and 3) the owner will always be 100% sole owner regardless of developments.  </p>

<p>While the owner doesn't want a contract, the non-owner is willing and thinks a contract is a very good idea for the benefit of the owner.</p>

<p>How might a cohabitation contract benefit the non-owner in the event that 1) the relationship ends disagreeably, and 2) the relationship continues but a lawsuit is filed against one or the other by a third party?</p>

<p>(Note <a href="https://money.stackexchange.com/questions/88295/moving-in-together-separate-finances">corresponding financial question here</a>.)</p>

<p>Ownership of real property often carries obligations to local or national bodies, such as property taxes (which are paid to local government).</p>

<p>Being an owner of the property puts that obligation on you. Depending on the structure of the tax law, owners may be obligated by proportion (you own <em>x</em>% of the house, you owe <em>x</em>% of the tax) or they may be obligated "jointly and severally" (everybody owes the taxes together, it can be - and sometimes is - taken from the first person the claimant is able to get their legal process hands on).</p>

<p>Contractual disavowment of any ownership interest relieves you of that tax obligation, at least.</p>
