The U.S. Census reported in 2019 that 17 million unmarried Americans live with their partners. Prenuptial agreements help married couples with their financial situation in the event their relationship ends, but unmarried couples cannot create one. However, palimony, which is a lesser-known concept, is a solution when it comes to financial arrangements between partners who live together but are not spouses.
Palimony agreements provide financial support from one partner to another when their relationship ends.
The basics of palimony
A couple can establish a palimony agreement if they put in it writing and both have legal representatives to oversee the creation of the document. It can cover various financial aspects, such as sharing living expenses, property ownership and plans for financial support in case of a breakup. Other requirements for such an agreement include that the couple lived together and never were in a marriage. An arrangement will be stronger when the couple has been together for a long time, such as over 20 years.
Reasons to create an agreement
The most common scenario where palimony becomes a significant consideration is when one partner has significantly contributed to the other’s financial well-being during the relationship. For example, if one partner supports the other by paying the bills, contributing to mortgage payments or funding the partner’s education or business ventures, they may want a claim for financial support if the relationship ends.
Palimony cases can be complex and vary greatly depending on the jurisdiction and specific circumstances. Each case is unique and may involve various factors. Only through the proper process with the right requirements can a couple establish a binding palimony agreement.