Cohabitating with a boyfriend or girlfriend before, or instead of, marriage is more common than ever in Atlanta and across Georgia. While sharing a home can feel like a natural step in your relationship, many couples overlook the legal and financial consequences that come with it. Without proper planning, breakups, incapacity, or even unexpected death can create costly disputes and uncertainty over who owns what.
The good news is that you can take legal steps to protect yourself and your partner. Thoughtful planning helps prevent misunderstandings and gives both of you peace of mind as you build your life together.
What Legal Options are Available to Cohabitating Couples in Georgia?
Various legal tools and strategies can protect your interests if you move in with a boyfriend or girlfriend. The most commonly used tools in Georgia are a revocable living trust and a limited liability company (LLC).
Georgia Revocable Living Trust
If the property is your “homestead” property for tax purposes, a revocable living trust is usually the best option. (More on that below.)
A living trust is a legal arrangement that allows a trustee to hold the property for the benefit of a beneficiary. You can appoint yourself as the trustee and the beneficiary for your lifetime.
Making a trust revocable allows the creator to terminate or change it at any time. The trust terms determine each party’s rights in the event that the other party passes away or becomes incapacitated, as well as how assets (including equity in the property) will be allocated.
Georgia Limited Liability Company (LLC)
If your property doesn’t qualify as a homestead, forming an LLC may be the better option. While LLC-owned property doesn’t receive the homestead exemption, it can still provide powerful protections.
An LLC is a hybrid legal entity that combines the benefits of a partnership and a corporation. An operating agreement governs how an LLC operates. It defines each party’s rights and responsibilities regarding the property and outlines what happens if one party passes away or becomes incapacitated.
For example, an operating agreement can address the following:
- What are each of your rights and responsibilities?
- Who pays for the mortgage payments, property taxes, and maintenance?
- What happens if one of you becomes incapacitated?
- What happens to the property if one of you passes away?
- What happens if one of you wants to sell the property?
- What happens if you break up?