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What’s Palimony?

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Palimony is a financial arrangement between unmarried couples who lived together for a significant amount of time. Cohabitation agreements can protect both parties from legal problems, and joint ownership of property is important in same-sex relationships. Court decisions for palimony settlements depend on factors such as the longevity of the relationship, verbal or written agreements, and income disparity. Unlike alimony, palimony settlements usually involve a lump sum payment. It is recommended that couples consult a family law attorney before cohabiting.

In the United States, palimony is a court-ordered financial arrangement between two former lovers who, although they never married, lived together for a significant amount of time. While similar to foods in principle, there are distinct differences between the two. The desire to cohabit without getting married has been a growing trend since the 1960s, and many people feel that their relationship “doesn’t need a piece of paper” to be validated. Others choose to cohabitate to see if the relationship can work before diving into marriage, and same-sex couples can’t legally marry in many places.

For some, the institution of marriage is seen as a legal tangle, an unnecessary complication of bureaucracy and intertwined assets that only need to be untangled when the relationship ends. With a marriage failure rate of around 50%, many people who have already been through a costly divorce vow to give up on the marriage. However, avoiding marriage doesn’t preclude legal problems, and sadly, relationships that start out as more than amicable can end up less than civil. Cohabitation misunderstandings that were never discussed, agreed upon, or clearly understood by both parties can lead to a payment lawsuit, in which one partner claims they are owed a financial settlement by the other.

While the laws differ in each state, presented here are some general key factors that could play into a court’s decision to award or deny a settlement:
Longevity of the relationship.
An implicit understanding between the partners that one would provide financially for the other for the rest of his life.
Verbal promises between partners that can be substantiated or corroborated.
Written financial agreements, if any.
Ability for the plaintiff to support himself.
Sacrifices made by one partner to support the other by giving up a career path to take care of the home or children.
Sacrifices made by one partner to get the other partner to go to school so that he can earn a professional degree.
Income disparity.

Unlike alimony, palimony settlements usually involve a lump sum payment at one time, as opposed to permanent monthly payments. A further difference is that it does not divide the ‘commons’: the legal owner of any assets obtains those assets without question, even if the partner has paid for them and regards them as common property.

In 1982, Scott Thorson filed the first public lawsuit against entertainer Liberace (1919-1987) after a five-year relationship. Thorson asked for $113 million United States Dollars (USD) and received $95,000 USD in the settlement. The next famous lawsuit came in 1991, filed by Judy Nelson. Nelson is suing tennis champion Martina Navratilova, ending an eight-year relationship that ended badly. Terms of the deal were not disclosed.

In order to avoid finding yourself on both ends of a palimony lawsuit, some legal experts recommend that couples take precautions. A cohabitation agreement is a good start and should cover expectations and agreements so that, in the event of a breakup, both parties are protected. While an informal handwritten draft signed by both parties is better than no documents, some legal experts suggest that each partner hire a lawyer and allow the lawyers to craft the cohabitation agreement. This serves to protect both parties because it cannot be argued later that the best interests of each have not been adequately protected.
Other advice includes placing both partners’ names on joint property and assets so they can be divided equally or even inherited. This is particularly important in same-sex relationships where couples may live together for life but be unable to marry. If the house, for example, is in the name of a deceased live-in partner, the house is automatically assigned to the relatives of the deceased, even if the surviving live-in partner has spent a lifetime helping to pay for it.

While marriage may be undesirable or even unavailable to some, it provides many automatic legal protections. Before considering cohabitation, it is best for couples to consult a professional family law attorney. This should help ensure that both parties have protection from potential palimony entanglements.

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