The property rights of domestic partners, who are living together, are left almost undefined by Indiana law. If a married couple gets divorced, the law has clearly-defined rules regarding what happens to their property. Even if the couple has failed to plan by executing a prenuptial agreement, there are default rules that are unambiguous. However, if a same-sex or other unmarried couple breaks up, who owns the couch?

There is not a clear answer under Indiana law.  Most personal property is not titled. And, what happens if the deed to a house is in one partner’s name, but the other pays half of the mortgage? Were the mortgage payments a gift? Or did they entitle the partner not on the deed to a share of ownership in the house?

There are some recent Court decisions where a domestic partner’s claim for compensation, for contributions made during the relationship, was upheld.  If one partner benefited substantially from the homemaking or financial contributions of their partner, they may be subject to a claim for compensation.  However, because there is not well-defined law establishing the facts to support a claim, these cases can require costly litigation.

Domestic partners can eliminate uncertainty and define the legal rights of their relationship by executing a Cohabitation Agreement. A Cohabitation Agreement can identify the separate property of each partner, define how to divide joint-property if the relationship ends, and make clear who is responsible for debt. Proper planning creates clarity in the relationship and can prevent needless future legal fees.

If you are living with a partner, contact Brett Gibson for a free initial consultation to discuss how you can define the legal rights of your relationship. You will then know, who owns the couch.