Unmarried and Living Together? Expect Nothing Unless you Contract!

Unmarried cohabitants living together need to use caution when spending time or money on improving “shared” property.  A recent opinion by the Michigan Court of Appeals, Williams v. Hartley, left one unmarried cohabitant with nothing to show for his efforts to improve the “shared” property of the couple after they separated.

Williams and Hartley became romantically involved and began to live together, under the assumption that they would marry in the future.  That assumption proved costly for Williams.   During their cohabitation, Williams and Hartley significantly improved the value of the property in which they lived, which was solely owned by Hartley and her father.  However, when things went sour they separated and Williams sued Hartley to recover the value of his labor and the amount he spent on resources improving the property.

The Court of Appeals determined that Williams was entitled to receive nothing for his efforts.   The law in Michigan provides that services rendered during a non-marital cohabitation relationship are presumed to be gratuitous.  Unless the plaintiff can show that he expected payment from the defendant at the time he rendered the services and, also that the defendant expected to pay for the services, the plaintiff will not be able to overcome this presumption.

Arguments made by Williams such as unjust enrichment, gifts made in contemplation of marriage and quantum meriut were all rejected by the Court of Appeals.  Courts will only enforce non-marital cohabitation agreements made with adequate and independent consideration.  The Court of Appeals held to hold otherwise would be to “resurrect common-law marriage.”  Unmarried co-habitants have no rights to property division in the absence of a specific contract.

This article was written by Matthew Ehrlich, Legal Clerk at Demorest Law Firm.

Effective Corporate Retreats

For years now our firm has had an annual retreat which we have found to be extremely helpful. As the author Shira Levine, Freelance Writer for American Express Open Forum suggests, retreats don’t have to be budget busters and, in fact, can be done locally and therefore cost effectively.

Typically, in the fall of each year, we will book a conference room at a neighborhood hotel for the day. Our retreat starts at 8 AM and ends at 5 PM with snacks and beverages provided throughout the day and of course we break for lunch. On some occasions we have closed the day with a firm provided dinner.

The primary goal of the retreat is to review how we did relative to the goals set at the prior year and to set goals for the upcoming calendar year. We set some very specific goals by function (Administrative, Marketing, Service and Housekeeping) and stay on track with a well thought out, written agenda.

Our retreats always include an outside facilitator who is responsible for leading us through the agenda. This individual is a professional who knows our firm and is a very astute and successful business person. The facilitator keeps things moving, on track and ensures everyone participates.

There is no question that an annual retreat, whether done locally or in another location that doesn’t max out your budget, is one of the best investments our firm and your businesses can make. Take a look at the link below for great suggestions on how to do get the most bang for the buck both locally and in other locations.

To read Shira’s Levine’s article “6 Tips for Planning A Corporate Retreat on a Budget” please click the following link 6 Tips For Planning A Retreat.

This article was written by Gary Field, CPA at Numerico, PC. Click here to view Numerico’s website.

Gary Field’s Views: Concerns About Michigan’s Economic Future – The Next Big Economic Crisis

Dick Morris targets not only the United States, but also the State of Michigan in particular, when he indicates that we aren’t far removed from the crushing wave of the economic tsunami now sweeping over Greece and other members of the EU. To those of us that have resided in Michigan most of our lives and watched the financial mismanagement that comes out of Lansing, financial collapse has always seemed inevitable. Though it seemingly took forever for the auto industry to melt down because of “Bad Management” it ultimately did and the State’s economic crisis isn’t far behind.

President Obama’s goal of “spending this country’s way to wealth” has failed miserably and can only add to the “EU effect” here in the United States. Locally we can expect a similar effect as our soon to be Ex Governor’s management style has been equally irresponsible.

Taking this to the private sector for a minute, when a client of ours leverages by borrowing so that they can continue to invest in the business, if the return on investment which is driven by sales isn’t there, the client must cut costs, including payroll and related benefits, in order to survive. The client simply cannot “deficit spend its way to prosperity” forever. Its bank, at some point, will stop “papering over” the deficits with more money and the client will ultimately be bankrupt. When there is no longer an adequate return on investment and as a result positive cash flow, the private sector does what it must to survive; manage the expense side of the equation. Our clients understand “The only way they can take you out of the game is if you run out of cash.” State of Michigan under its current leadership has been more about taxing and spending versus cutting.

In addition to the federal government funding which has been used to feed the insatiable appetite of the unions in this state, the other source of funding which is drying up is debt sold by the State and its Municipalities. More and more, sophisticated investors are less and less inclined to buy what is quickly becoming regarded as junk bonds from either source. Case in point: Two months ago we were charged with investing one million dollars for a client in Michigan Municipals. However, the market has become so fragile that the money remains in cash as we look to a safer venue.

Morris points out, just as Athens has turned to Berlin, bankrupt states like Michigan will turn to the federal government to guarantee their debt. That my friends will be a pivotal point in this great country’s future in that it will determine whether we become financially responsible going forward by just saying NO or continue as we have recklessly “spending our way to wealth.”

Morris is literally on the money on his analysis and recommendations regarding what the next steps should be and what they mean to the United States of America. This is an excellent piece well worth the read.

To read the entire article please click the following link The Next Big Economic Crisis.

This article was written by Gary Field, CPA at Numerico, PC. Click here to view Numerico’s website.