Whether you are in a partnership in which you aren’t able to get married, like a same-sex couple in a state in which same-sex marriage isn’t legal, or if you are in a relationship in which you simply choose not to get married, Kiplinger has published some financial basics to keep in mind.
These tips may help you to avoid the legal complications that can come with non-married, long-term partnership, and to protect you and your significant other.
Sign powers of attorney
Even if those outside your relationship don’t recognize it, partners can use a power of attorney to assign each other “health-care power of attorney.” These state-specific documents are available for free at doctor’s offices, hospitals and online.
The power of attorney can grant the decision-making authority to a partner, rather than family members like parents.
Write it down
While you may know the arrangement you have with a partner, as a “single” person, you only have a right to a partner’s life and possessions if there is a written agreement in place. With a cohabitation contract, partners can formalize their living and financial arrangements, and put it into writing what happens if partners go their separate ways.
Create a will
Without a legally executed will, an estate will be divided according to state intestacy law. Express your wishes directly in a legal will. The intestacy laws typically favor spouses, children and other relatives over long-term partners.
For around $300, a lawyer can draw up a will, or you may be able to do it yourself at nolo.com or legalzoom.com for a smaller fee, according to Kiplinger.
Also, issues of legal guardianship of children can hinge on a legal will. For a legal parent to transfer guardianship to a partner, he or she should nominate them as the personal guardian. The court has to sign off on the guardianship, but has a tendency to accept the wishes of the legal parent, unless another legal parent is willing and able to take on guardianship.
Establish joint ownership
There are several levels of joint property ownership for unmarried partners. The first, “tenancy with the right of survivor,” grants property evenly between partners, and gives a partner ownership should the other die. But there are limitations.
With “tenancy,” though, there is a more flexible joint ownership option, in which property can be divided unequally, and you can leave your stake to your partner, or to anyone else you choose. Without a will, though, in this option the state can distribute your property should you pass away.
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