[WSBARP] Separate Property with Co-habitation and Expenses

[Jim Doran]

List members:

Mature (well, in their 60's) clients have figured out who owns what
property in a Property Agreement.  However, they are asking me for "what is
fair" in how they split up the costs of co-habitation.  I think this is
probably a common scenario these days.  I have this question arise with
clients now and then.  Can someone give me some guidance?  Is there a
popular book on this topic?  A website?

Here are the basic two scenarios for the modern age:

Scenario #1 (John and Mary): John owns his home and has a mortgage on it
with a $1,500 per month which includes taxes and insurance.  Mary is going
to live with John in his home.  It is a very nice home.  Mary is going to
sell her home and keep those funds separate.  The two of them will have all
of the typical living expenses of food, utilities, minor maintenance, etc.
The two of them share the tasks of living together such as cooking and
shopping and cleaning, laundry, etc.  Mary likes to cook for John so they
are in agreement that her services have a value.  They will keep their own
health insurance and vehicle insurance separate since they are not married.

QUESTION: What contribution should Mary make to the overall costs of living
in John's home so that there is a sense of fairness so that resentments do
not ensue?

Scenario #2 (Mike and Susan): It is the basic same co-habitation story with
one change.  Mike owns his home outright.  He paid off the mortgage.  Mike
still has taxes and insurance to pay.  Susan is going to live in Mike's
home with Mike.  Susan is going to sell her home and keep those funds
separate.  They share the living tasks.  The utilities, food and minor
maintenance are pretty simple.  They can make an adjustment for Susan's
services because she likes to provide the cooking.

Same QUESTION: What contribution should Mary make to the overall costs of
living in John's home so that there is a sense of fairness so that
resentments do not ensue?

This question keeps coming up as I do work with "mature clients" in their
second or third serious relationship or marriage.  Surely there is some
structural guidance out there somewhere.

Thank you.

James Doran





James R. Doran
Attorney at Law
100 E. Pine Street -  Suite 205
Bellingham, WA 98225
(360)393-9506
jim at doranlegal.com
www.doranlegal.com
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