Confused about Common Law Marriage and Its Financial Impacts? Here’s What You Should Know

The institution of common law marriage in the United States of America dates back to 1877. Even though it may seem to be a bygone period of marriage, 10 states and the District of Columbia continue to recognize it in some form or another. In this post, we will go through common law marriage is, which states accept it, and how individuals may marry under common law.

What Is Common Law Marriage?

A couple is considered to have entered a common law marriage if they have lived together for a lengthy period and have presented themselves as “married” to their friends, family members, and community members despite never having had a formal ceremony or received a marriage certificate.

What Are the Financial Consequences of a Common-Law Marriage?

If both partners have resided in the same common-law state for the majority of their marriage, then they are considered to have the same rights and responsibilities as legally married couples. 

•  They will be eligible for Social Security payments if they can verify the number of years they have lived together in a common-law state.
• They are eligible for job benefits such as health insurance through their spouse’s employer.
• There is no gift tax imposed on gifts given between both partners.
• Their estate can claim an unlimited number of marital exemptions as long as they don’t go over the federal estate tax exemption threshold. 
• If they live together, they may be able to get reductions in the interest on their mortgage and their child support payments.
• If the deceased partner left a valid will, they have the legal right to inherit the deceased partner’s property. If a partner dies without a will, their children and other family members get the inheritance rights, leaving the surviving common-law spouse with none.
• They have the legal right to use a medical power of attorney (POA) that names their common-law spouse as the person who may make medical decisions on their behalf if they are unable to do so themselves.

Common-Law Marriage States

As per a high-profile family law attorney specialized in common law marriage in California, common-law marriages are recognized in just a few states and the District of Columbia, and each of these jurisdictions has its own set of requirements, including the following:

• Colorado
• Iowa
• Kansas
• Montana
• New Hampshire
• Oklahoma
• Rhode Island
• South Carolina
• Texas
• Utah

Civil Unions 

You must maintain the notions of a civil union and a common-law marriage distinct in your mind. The latter term refers to a legal tie that exists between two people but only confers rights at the state level. Before the 2015 decision in Obergefell v. Hodges, which made same-sex marriage legal in all fifty states, the most frequent route for same-sex couples to form a formal relationship was via the formation of a civil union. Moreover, a civil union does not provide the couples involved with any rights to government benefits, regardless of whether the spouses are of the same or different genders. 

Consideration Points 

The matter of whether same-sex couples may enter into common-law marriages is not entirely clear. Some legal experts believe that the same considerations that are given to couples of the opposite sex in the context of common-law marriages also apply to LGBTQ+ couples. 

As of the year 2021, only the District of Columbia, the state of Rhode Island, and the state of Iowa expressly permit same-sex common-law marriages. In 2021, Colorado became a member of its group.

Conclusion

Partners who leave the state where they formed a common-law marriage should be aware that a common-law marriage formed legally in another state is recognized by all states. It makes no difference where the marriage took place.

However, to ensure that they continue to enjoy all the benefits that come with being a married couple in the new state, it is highly recommended that they consult with a local attorney as soon as possible after making the move. Maintaining correct paperwork may be beneficial when filing claims for federal aid, particularly for people who travel a lot throughout the year.

Although there is no common-law divorce, a long-term couple must formally end their partnership. This refers to the fact that a person who was previously married under common law may be obligated to assist their ex-spouse in the same way that a person who was previously married under legally binding marriage may be compelled to do once their marriage ends. 

 

*This is a collaborative post.