Summary:

 House Bill 123 (HB 123) enacts the Uniform Cohabitant’s Economic Remedies Act, providing a right of action to cohabitants for contractual and equitable claims; establishes requirements of a cohabitant’s agreement; providesa right to third parties to enforce judgments against cohabitants; and provides remedies. 

Legislation Overview:

 House Bill 123 (HB 123) enacts the "Uniform Cohabitants' Economic Remedies Act" (UCERA). 

Definitions are provided as follows:

A. "cohabitant" means each of two people not married to each other who live together as a couple after each has reached the age of majority or been emancipated, but does not include two persons who cannot lawfully marry because both persons are relatives within a prohibited degree pursuant to state law; 

B. "cohabitants' agreement" means an agreement between two people concerning contributions to the relationship if these people are to become, are or were cohabitants, and includes a waiver of rights under the Uniform Cohabitants' Economic Remedies Act; 

C. "contributions to the relationship" means the contributions of a cohabitant that benefit the other cohabitant, both cohabitants or the cohabitants' relationship in the form of efforts, activities, services or property and: 

(1) includes cooking, cleaning, shopping, household maintenance, conducting errands and other domestic services for the benefit of the other cohabitant or the cohabitants' relationship; 
(2) includes otherwise caring for the other cohabitant, a child in common or another family member of the other cohabitant; and 
(3) does not include sexual relations; 

D. "property" means anything that may be the subject of ownership, including responsibility for a debt;

E. "record" means information: (1) inscribed on a tangible medium; or (2) stored in an electronic or other medium and retrievable in perceivable form; 

F. "state" means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands or any other territory or possession subject to the jurisdiction of the United States; and 

G. "termination of cohabitation" means the earliest of: (1) the death of a cohabitant; (2) the date the cohabitants stop living together as a couple; or (3) the date of the cohabitants' marriage to each other. 

The UCERA applies only to a contractual claim or an equitable claim between cohabitants concerning an interest, promise or obligation arising from contributions to the relationship. The rights and remedies of cohabitants under the Uniform Cohabitants' Economic Remedies Act are not exclusive. 

Rights of cohabitants to bring action are detailed as follows:

A. A person who is or was a cohabitant may commence an action on a claim that arises out of contributions to the relationship. No provision of the UCERA shall be interpreted as to 
create or allow the creation of an equitable lien. The action is not: 

(1) barred because of a sexual relationship between the cohabitants; 
(2) subject to additional substantive or procedural requirements because the parties to the action are or were cohabitants or because of a sexual relationship between the cohabitants; or 
(3) extinguished by the marriage of the cohabitants to each other. 

B. The action may be commenced on behalf of a deceased cohabitant's estate. 

C. The action may be commenced against a deceased cohabitant's estate and judged according to a law of this state applicable to a claim against a decedent's estate. 

Applicability of governing law is presented as follows:

A. Except as otherwise provided in the UCERA, a claim under the UCERA is governed by other laws of this state, including this state's choice-of-law rules. 

B. The validity, enforceability, interpretation and construction of a cohabitants' agreement are determined by: 

(1) the state law designated in the agreement if the designation is valid under other state law; or
(2) in the absence of a designation, the law of this state, including this state's choice-of-law rules. 

Matters related to a cohabitant’s agreement are governed as follows:

A cohabitants' agreement may be oral, in a record, express or implied-in-fact. 

B. Contributions to the relationship are sufficient consideration for a cohabitants' agreement. 

C. A claim for breach of a cohabitants' agreement accrues on breach and may be commenced, pursuant to Chapter 37, Article 1 NMSA 1978, during cohabitation or after termination of cohabitation. 

D. A term in a cohabitants' agreement that adversely affects a child's right to support is unenforceable. 

E. A term in a cohabitants' agreement that requires or limits the ability of a cohabitant to pursue a civil, criminal or administrative remedy is voidable to the extent the remedy is available because the cohabitant is a victim of domestic abuse as defined pursuant to the Family Violence Protection Act. 

Equitable relief options and rules are as follows:

A. Unless maintaining the action is inconsistent with a valid cohabitants' agreement, a cohabitant may commence an equitable action against the other cohabitant concerning entitlement to property based on contributions to the relationship. The action is in addition to any remedy otherwise available to the cohabitant pursuant to the UCERA or other state law or federal law. 

B. A cohabitant may commence an action provided pursuant to the UCERA in the family court division of any state district court. 

C. An equitable claim based on contributions to the relationship accrues on termination of cohabitation and is subject to equitable defenses. 

D. In addition to other laws governing an equitable claim, the court adjudicating a claim under this section shall consider: 

(1) the nature and value of contributions to the relationship by each cohabitant, including the value to each cohabitant and the market value of the contributions; 
2) the duration and continuity of the cohabitation; 
(3) the extent to which a cohabitant reasonably relied on representations or conduct of the other cohabitant; 
(4) the extent to which a cohabitant demonstrated an intent to share or not to share property with the other cohabitant; and 
(5) other relevant factors.

Matters regarding court orders are presented as follows:

A.	A court order or judgment granting relief under the UCERA against a cohabitant or a cohabitant's estate is an order or judgment in favor of a general creditor. 

B.	A court order or judgment granting relief under the UCERA is not to impair the rights of a good-faith purchaser from or secured creditor of a cohabitant. 

Principles of law and equity supplement the UCERA except to the extent inconsistent with the UCERA. 

In applying and construing the UCERA, a court must consider the promotion of uniformity of the law among jurisdictions that enact it. 

The UCERA modifies, limits or supersedes the federal Electronic Signatures in Global and National Commerce Act, 15 U.S.C. Section 7001 et seq., as amended, but does not modify, limit or supersede 15 U.S.C. Section 7001(c) or authorize electronic delivery of any of the notices described in 15 U.S.C. Section 7003(b). 

The UCERA applies to a cohabitants' agreement made on or after the effective date of the UCERA.

The UCERA applies to an equitable claim pursuant to the UCERA that accrues on or after the effective date of the UCERA. 

If a provision of the UCERA  or its application to a person or circumstance is held invalid, the invalidity does not affect another provision or application that can be given effect without the invalid provision. 

The effective date of the provisions of this Act is July 1, 2025.
 

Current Law:

 Currently, New Mexico does not have a cohabitation law, nor does it recognize common-law marriage or cohabitation. New Mexico only recognizes domestic partnership agreements if they were created in another state and the partners move to New Mexico.