|
Domestic Partnership Agreements
In Colorado, and most other states, non-married couples can enter into contracts that set forth what will happen in the event the couples break up. These contracts usually deal with property and debt division. Couples can fashion any type of agreement that they wish. For instance, some couples agree that their assets and debts will remain completely separate, even though they share a household. Other couples agree that they will share all assets, debts and income that come about during the time they are in the relationship. Still other couples choose a middle ground. We strongly recommend that if you live with a romantic partner, and certainly if you intend to own property with that partner, you should have a domestic partnership agreement that states what happens to property and debt if there is a break-up. The best time to make these decisions is when you are in love and concerned about each other’s welfare. The worst time to have to make these decisions is after a break-up. Each month, we see many clients who own property with a partner, but do not have a domestic partnership agreement. These clients spend thousands of dollars getting property and debt divided at the time of a break-up. All of these clients were sure that they would never break up with their partner or that, that if they did break up, they would be able to resolve the property and debt issues amicably. They were wrong. If you are thinking about putting your partner on the title of your house, and do not have a domestic partnership agreement, consider these things: Your partner will likely later argue that you made a gift to him or her of 50% of the value of the house; The IRS will likely think you made a gift to your partner of your house, and will TAX you on that gift; Your mortgage company can call the full amount owed due as the result of changing the titling on the house. Please talk to an attorney before putting your partner’s name on your house. | 
