2010 data from the U.S. Department of Health and Human Services shows the number of couples cohabiting has greatly increased over the past three decades. The percentage of women 30 to 39, for example, who have ever cohabited doubled from 30 percent to 61 percent between 1987 and 2002. This suggests that many people question the need for a marriage contract. While a marriage license isn't necessary to demonstrate romantic partners' commitment to each other, it does provide certain legal benefits and protections to each partner.
Medical Benefits and Rights
Most states deny cohabiting couples the right to be covered by their partner's insurance. When both cohabiting partners have employer sponsored coverage, this benefit may not seem very important; however, if a partner should lose his job, the ability to be added to the coverage of the employed partner can save the couple thousands of dollars in medical expenses. Additionally, a cohabiting partner is legally unable to make any medical decisions for his partner in the case of a medical emergency. Hospitals are required to contact the legal next-of-kin---defined as a member of the person's family of origin, an adult child or legal spouse. In many cases, you may be unable to get updates on their health status or treatment options as well.
Property Division
Few couples make a commitment to live together or get married believing they will eventually break up. Unfortunately, however, many do break up. One of the benefits of marriage is that the marriage license acts as a contract, providing each partner with certain rights if the relationship dissolves. Every state has provisions within their marital laws to ensure that each spouse gets an equitable share of any accumulated assets. Cohabiting couples do not have this protection under law; if the relationship ends, partners must determine between themselves how to split any shared assets fairly. If one partner is dissatisfied with the terms of the split, the dissatisfied partner will need to obtain a lawyer and sue. The dissatisfied partner will have the burden of proof---that is, she will be required to prove to the judge that she has a legal right to the assets.
Inheritance
Another, often overlooked, benefit provided by marriage is the right of inheritance. In most cases, if a spouse dies without a will, the right of inheritance is automatically awarded to the living spouse and any biological or adopted children. If your cohabiting partner should die unexpectedly without a will establishing you as his legal heir, the state may award his next-of-kin with ownership of any existing assets. This means your partner's next-of-kin may be awarded full or partial ownership of your home, of money that exists in any bank or money market accounts, any stock shares and/or any existing vehicles registered in your partner's name, regardless of your joint investment in these assets.
