Talk about the financial arrangement before there is a disagreement
Moving in together is an important step. You may be sharing rent, paying a mortgage, combining savings, or planning for one partner to work less while the other earns more. It is easy to assume you both understand what those choices mean.
Those assumptions may be very different. One person may see a monthly payment as a contribution toward ownership. The other may consider it rent. One may expect repayment for a remodel; the other may think it was a gift.
A cohabitation agreement is a contract between unmarried partners that addresses their financial arrangement. For Scottsdale couples, the useful questions are practical: What belongs to each of us? What are we sharing? How do we handle a change? The agreement should answer those questions in language both people understand.
Living together does not create an Arizona marriage
Arizona does not create a common-law marriage merely because a couple lives together, shares a last name, or stays together for a particular number of years. A.R.S. § 25-111 sets the requirements for contracting a marriage in Arizona.
There is an important qualification: Arizona generally recognizes a marriage validly contracted elsewhere, subject to statutory exceptions. If you may have established a common-law marriage in another jurisdiction, have your status reviewed before assuming you are unmarried. A.R.S. § 25-112 addresses marriages from other states.
For unmarried partners, living together does not automatically create community-property rights. Arizona’s community-property statute concerns property acquired by spouses during marriage, with specified exceptions. That is different from a contract or ownership claim between unmarried people. A.R.S. § 25-211 provides the marital rule.
Can an agreement between unmarried partners be enforceable?
Yes, an agreement can be enforceable, but the terms and circumstances matter. In Cook v. Cook, the Arizona Supreme Court recognized that unmarried partners can make enforceable property-sharing agreements supported by proper consideration independent of their sexual relationship. Cohabitation alone did not invalidate an otherwise valid contract.
In Carroll v. Lee, the Court also addressed an agreement shown by the couple’s conduct and the exchange of homemaking and financial contributions. These decisions do not mean every long relationship produces an equal ownership share. They show why the actual agreement, contributions, and evidence matter.
A written agreement can reduce uncertainty about those facts. It should identify the promises each person is making, use lawful terms, and reflect voluntary agreement. Real-property transactions raise additional requirements: Arizona’s statute of frauds generally requires a signed writing for agreements involving the sale of real property or an interest in it. Have property terms reviewed alongside the deed and other transaction documents.
What should a cohabitation agreement address?
Property each person brings into the household
List existing assets and debts. Identify the house, savings, investments, vehicles, business interests, and valuable personal property that each person already owns. Include account identifiers only to the extent needed for clarity and protect copies containing private information.
Decide how later contributions will be treated. If one partner helps pay for the other’s existing home, is the payment for living expenses, a loan, or part of an intended ownership arrangement? Document the answer before money changes hands.
Shared expenses and purchases
Specify who pays rent or the mortgage, utilities, insurance, groceries, repairs, and other recurring bills. Decide whether contributions are equal, based on income, or handled another way. Describe what happens if income changes.
For larger purchases, identify ownership and payment responsibility separately. A shared bank account can make paying bills easier, but it should not replace a clear record of what the money is for. Decide whether a purchase is joint before buying it.
Home improvements and unpaid work
A down payment is relatively easy to document. Months of renovation work or taking on household duties while a partner builds a business can be harder to value later. Discuss whether those contributions create reimbursement, ownership, compensation, or no financial claim under the intended arrangement.
A useful agreement avoids phrases such as “we will be fair.” If reimbursement is intended, define the calculation, required approval, records, and payment deadline. For a home purchase, see our guide to buying a home as an unmarried couple.
Debts and obligations to other people
Identify who signs each loan and who is expected to make the payments. A private allocation of expenses does not itself release a borrower from the lender’s contract. The Consumer Financial Protection Bureau’s homeownership guidance explains that borrowers can remain responsible for a mortgage after one moves out.
The same practical issue applies when a lease or account remains in both names. Arrange any required release directly with the creditor or landlord instead of relying only on a promise between partners.
Include a workable separation process
Discuss the exit terms while cooperation is easier. The agreement can address notice, a reasonable move-out process, division of belongings, closing joint accounts, and payment of outstanding household bills. Housing provisions should be reviewed for applicable property and landlord-tenant requirements; a private deadline is not permission for an unlawful lockout.
If you own a home together, describe how you will decide between a buyout and sale. Address valuation, the chance to qualify for financing, who pays expenses while the decision is pending, and what happens if neither person can keep the property. Do not promise a refinance without an alternative if a lender declines it.
Consider a process for resolving a disagreement. Mediation may be useful in an appropriate case, but dispute provisions should account for safety, unequal bargaining power, and the need for court relief when necessary.
Children and estate planning need separate attention
A cohabitation agreement should not be treated as a final custody or child-support order. Arizona imposes child-support duties on parents, and parenting orders depend on the child’s best interests. See A.R.S. § 25-501 and § 25-403. If you have children, review parentage and appropriate family-court orders separately.
Likewise, a household contract should not be your only plan for death or incapacity. Arizona’s intestacy rules provide for a surviving spouse and specified relatives; an unmarried partner does not receive a spouse’s share simply through cohabitation. A.R.S. § 14-2102 and § 14-2103 explain those defaults.
Review beneficiary designations, estate documents, and decision-making authorizations with appropriate counsel. Title, a contract, and an estate plan should work together.
Get the right review for your situation
Give each partner time to understand the agreement and obtain independent legal advice. Bring financial records, existing agreements, deeds, loan documents, and a list of what you intend to share. Revisit the arrangement after a home purchase, a major financial change, or plans to marry.
Best Law Firm’s practice focuses on Arizona family law. Contact our Scottsdale team to discuss the family-law issues involved and the scope of assistance available. Real-estate, contract, tax, or estate-planning questions may require coordination with counsel or other professionals in those areas.
Common questions
Are we common-law married after seven years in Arizona?
No. There is no Arizona seven-year rule that turns cohabitation into marriage. If your relationship may qualify as a valid marriage under another jurisdiction’s law, that is a separate question that should be reviewed.
Does paying my partner’s mortgage automatically make me an owner?
No automatic ownership share arises simply from a payment. The deed, the parties’ agreement, the purpose of the payment, and the surrounding evidence can matter. Put an intended ownership or reimbursement arrangement in writing and have the property documents reviewed.
Can we use a cohabitation agreement instead of a prenuptial agreement?
They address different circumstances. A cohabitation agreement concerns an unmarried arrangement; a premarital agreement is made in anticipation of marriage and becomes effective upon marriage. If you plan to marry, review which provisions should end, continue, or be replaced rather than assuming the existing contract answers every marital-property question.
Is a cohabitation agreement only useful if we own a house?
No. Shared expenses, loans between partners, vehicles, savings, major purchases, and the division of belongings can also create disputes. The agreement should be proportionate to the financial arrangements you actually have.
Arizona law and further reading
These sources support the legal information on this page. Court procedures and the law can change; your circumstances determine how they apply.
- A.R.S. §§ 25-111 and 25-112: Marriage requirements and recognition
- A.R.S. § 25-211: Community property
- Cook v. Cook, 142 Ariz. 573 (1984)
- Carroll v. Lee, 148 Ariz. 10 (1986)
- A.R.S. § 44-101: Statute of frauds
- CFPB: Homeownership on your own or with someone else
- A.R.S. § 25-501: Duties of support
- A.R.S. § 14-2103: Heirs other than a surviving spouse
- A.R.S. § 25-202: Premarital agreements
This page provides general information, not legal advice for a specific matter. Reading it or contacting Best Law Firm does not establish an attorney-client relationship. Speak with licensed counsel about your circumstances before signing an agreement or acting on legal information.
