Unmarried couples may be vulnerable to financial instabilities in the case of a break-up or death

More couples are living together without the protection of a recognized marriage, which could leave them open to losing their homes and financial livelihoods, according to Bloomberg BusinessWeek.

"It's dangerous to leave matters like custody of your children or holding on to your home to nonspecialists," Howard Forman, an attorney at Turkel, Forman and de la Vega in New York, told the news source. "It's heart-wrenching when you see people who think they are protected and they're not."

When a traditional marriage ends, either through divorce or death, each living spouse is given access to life insurance policies and transfer of property. In an unrecognized relationship, there is no protocol for these events, so one person could be unfairly treated or forced to move.

The division of assets can get lead to lengthy, expensive court battles and leave one or both individuals in severe financial trouble.

The federal government does not recognize domestic partners as married individuals for federal tax purposes, according to the California Tax Board. Without the government's recognition, legal and financial planning may be more costly because the issues are so complicated.  

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