[WSBARP] Separate Property with Co-habitation and Expenses

[Roger Moss]

John,

Strife from “roommate deals” is one of the sleeping giants of the housing crisis. The way to avoid trouble is not to focus first on a particular solution, as finding one depends on context not easily condensed into short questions. Rather, a process should be created to govern the on-going relationship. That process should allow for flexibility, and include a dispute resolution mechanism.

There are both non-profit and for-profit orgs emerging who help people successfully share space. Some put roommates together. Others focus on elderly people and small landlords who need to rent rooms in their homes to make ends meet. A key ingredient is the creation of a written roommate agreement.

Here is a link to a Bay Area org with whom I frequently collaborate: https://homematchsf.org/. 

We are working on bringing these services to the Puget Sound, along with those of Conflict Intervention Service in Housing, which helped over 1,000 San Francisco residents avoid eviction in the last two years through highly innovative mediation. Learn more here: sfbar.org/cis;  http://www.sfbar.org/forms/sfam/q32018/conflict-intervention-service-SFAM-Q318.pdf. 

Avoiding problems before they start, which is exactly what you are trying to do, is essential. I would welcome the opportunity to share additional thoughts and experience if needed. 

Addressing problems with space sharing and the related topic of how to create a thriving tenant - landlord relationship might make a good topic of presentation to the section. 

Roger A. Moss 
Mediation Counsel
206.790.1971 Seattle
415.371.9724 San Francisco
www.rogeramoss.com

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> On Feb 8, 2019, at 8:31 AM, Jim Doran <jim at doranlegal.com> wrote:
> 
> 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 <mailto:jim at doranlegal.com>
> www.doranlegal.com <http://www.doranlegal.com/>
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