Cohabitation vs. Marriage in Indiana: Understanding the Legal Differences

As societal norms evolve, more couples are choosing to live together without getting married. While cohabitation offers flexibility and convenience, it’s important to understand how it differs legally from marriage, especially in a state like Indiana. This blog will explore the key legal implications of cohabitation versus marriage in Indiana, helping you make informed decisions about your relationship and financial future. 

The Basics of Cohabitation in Indiana

Cohabitation refers to a couple living together in a romantic relationship without being legally married. In Indiana, cohabitation is becoming increasingly common, particularly among younger couples. However, it’s crucial to note that cohabitation does not grant the same legal rights and protections as marriage.

Key Legal Differences Between Cohabitation and Marriage:

1. Property Rights:
   • Marriage: In Indiana, property acquired during a marriage is generally considered marital property and is subject to equitable distribution in the event of a divorce. This means that the court will divide property in a way that is fair, though not necessarily equal, between the spouses.
   • Cohabitation: Cohabiting couples do not have automatic property rights. If the relationship ends, each person retains ownership of their individual assets. There is no legal framework for dividing property, which can lead to disputes if the couple has purchased property together.
2. Inheritance Rights:
   • Marriage: Spouses have automatic inheritance rights under Indiana law. If one spouse dies without a will, the surviving spouse is entitled to a portion of the deceased spouse’s estate.
   • Cohabitation: Cohabiting partners do not have automatic inheritance rights. If one partner dies without a will, the surviving partner has no legal claim to the deceased partner’s estate, which could potentially go to distant relatives or the state.
3. Healthcare Decision-Making:
   • Marriage: Married couples have the legal right to make medical decisions for each other if one spouse is incapacitated and unable to communicate their wishes.
   • Cohabitation: Cohabiting partners do not have this right automatically. Unless a healthcare power of attorney is in place, a cohabiting partner may not be able to make critical medical decisions on behalf of their partner.
4. Spousal Support (Alimony):
   • Marriage: In Indiana, spousal support or alimony may be awarded during a divorce, depending on factors like the length of the marriage and the financial needs of the spouses.
   • Cohabitation: Cohabiting partners are not entitled to spousal support upon separation, regardless of the length of the relationship or any financial dependence that may have developed.
5. Social Security and Benefits:
   • Marriage: Married couples are entitled to various benefits, such as Social Security spousal benefits, health insurance coverage, and tax benefits.
   • Cohabitation: Cohabiting partners are not eligible for these benefits. For example, a cohabiting partner cannot receive Social Security benefits based on their partner’s earnings.

Legal Protections for Cohabiting Couples

While cohabitation does not offer the same legal protections as marriage, there are steps couples can take to protect their rights and interests. Here are some key strategies:

Cohabitation Agreements

A cohabitation agreement is a legally binding document that outlines how property, debts, and other assets will be divided if the relationship ends. This agreement can also address issues like financial support and living arrangements. Having a cohabitation agreement in place can prevent disputes and provide clarity for both partners.

Wills and Estate Planning

To ensure that your partner is provided for in the event of your death, it’s essential to create a will. This allows you to designate your partner as a beneficiary and outline how you want your assets distributed. Additionally, consider establishing a trust or other estate planning tools to protect your partner’s financial future.

Healthcare Directives

Cohabiting couples should consider drafting healthcare directives, such as a healthcare power of attorney and a living will. These documents allow you to designate your partner as your healthcare proxy, giving them the legal authority to make medical decisions on your behalf if you are unable to do so.

Joint Ownership

If you purchase property together, it’s important to title the property in both partners’ names as joint tenants with rights of survivorship. This ensures that if one partner dies, the other automatically inherits the property without the need for probate.

Why Some Couples Choose Cohabitation Over Marriage

Despite the legal advantages of marriage, many couples in Indiana choose cohabitation for various reasons. Some view cohabitation as a way to test the relationship before committing to marriage, while others may prefer the flexibility and independence that come with not being legally bound.

For older couples, particularly those who have been previously married, cohabitation can offer a way to maintain financial independence while still enjoying a committed relationship. Additionally, some couples may choose cohabitation to avoid the legal complexities of divorce, should the relationship end.

Deciding What’s Right for You

Choosing between cohabitation and marriage is a deeply personal decision that depends on your values, goals, and circumstances. It’s essential to understand the legal implications of each option and take proactive steps to protect your interests, whether you decide to marry or live together without tying the knot.

If you’re considering cohabitation, it’s a good idea to consult with a family law attorney who can help you understand your rights and draft the necessary legal documents to safeguard your future. At Boren, Oliver, and Coffey, LLP, we’re here to assist you in navigating the complexities of cohabitation rules and ensuring that your relationship is built on a solid legal foundation.

Weighing the Legal Pros and Cons

Understanding the legal differences between cohabitation and marriage in Indiana is crucial for making informed decisions about your relationship. While cohabitation offers flexibility, it lacks the legal protections of marriage. However, with the right legal agreements and planning, cohabiting couples can still protect their rights and build a secure future together. If you have questions about cohabitation or need assistance with legal planning, contact Boren, Oliver, and Coffey, LLP, today.