When a married couple divorces, there is a large body of Arizona law governing how the couple’s assets and debts should be divided and allocated between them. This law consists of certain statutes as well as numerous court decisions interpreting the statutes and dictating how the statutes are to be applied in various situations.
But when an unmarried couple without a written cohabitation agreement splits up, what law governs the division of the assets and debts they acquired during their cohabitation? Assets acquired and/or paid for during a period of unmarried cohabitation are not community property because the assets are not acquired during marriage. The marital and domestic relations statutes, therefore, do not apply.
In the case of jointly titled real estate, A.R.S. Section 12-1211 allows either owner/claimant to file a civil action for partition of the real estate. Bank accounts, personal property and other assets, however, must be divided via civil court action based on various partnership theories. These theories include breach of contract and unjust enrichment.
Arizona’s Supreme Court has held that when unmarried cohabitants agree by word or conduct to pool their resources and equally divide their assets, that agreement can and should be enforced. See Cook v. Cook, 691 P.2d 664, 142 Ariz. 573 (Ariz. 1984). The Arizona Supreme Court later expanded the ruling in Cook, finding that even contributions of marital services rather than money could be sufficient to support a claim by the non-wage-earning cohabitant for a share of the assets acquired / paid for during the period of cohabitation. See Carroll v. Lee, 712 P.2d 923, 148 Ariz. 10 (Ariz. 1986).
In short, although the body of governing law is small compared to the law governing the division of assets in a divorce context, Arizona law provides that an unmarried cohabitant does have the right to seek court enforcement of a valid agreement, written or otherwise, between her and her ex-partner to contribute funds or services to the relationship and to divide assets acquired and/or paid for during the relationship.
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