Amid the rising "gray divorce" rate, unmarried seniors comprise a high percentage of cohabitating couples. It is important to note the specific financial concerns that confront couples later in life, and how living together contracts (or cohabitation agreements) can not only protect a person's finances, but also the inheritance of their children.

Many older couples have decided against marriage for reasons that might include the memories of an unhappy marriage or the experience of a nasty divorce, and so on. But finances are definitely a huge factor. Social Security concerns can play a role in this, as divorcees who marry again before they are 60 years old would forfeit the ability to collect Social Security benefits and sometimes pensions from a prior relationship. Social Security taxes can also be upped after marriage. You might also lose out on alimony through remarriage.

If you have children entering college, remarriage could entail your new spouse's income getting factored in, perhaps decreasing the amount your child could receive in financial aid. Then there are estate planning issues, particularly if you want to preserve the inheritance of adult children. You need an estate plan that covers this issue thoroughly. A family lawyer and financial experts could help you understand how you and your children's financial situations could be affected by cohabitating or marrying.

As for cohabitating couples, many concerns can be addressed in a living together agreement.

Here are some things a living together agreement can do:

• Delineate what property is a partner's separate property
• Describe how income would be shared
• Transfer ownership of property to a partner
• Outline how expenses will be shared
• Decide on separate or joint accounts

Without this written agreement, one partner could claim that the other entered an oral contact with them. The majority of states will abide by an oral agreement. A written contract can prevent confusion and complication about property.

In order to craft a legally sound living together contract, or to find other legal answers and advice, talk to a family attorney today!