What is Household in Legal Terms
With case law evolving and jurisdictions having varying definitions, the definition of household remains unsettled.
Generally, a court’s interpretation of "household" will depend on the context in which the phrase is included. Population estimates, such as those provided by the United States Census Bureau, define a household as "all the people who occupy a housing unit." This definition, however, may be split in different ways depending on the situation. For instance, in situations involving insurance coverage, courts have interpreted this definition in several different ways as well. A 2006 Alabama state court construed the term "household" narrowly within the context of automobile insurance policies as referring only to an insured and other living persons within the same home, but had a more expansive interpretation in a context involving homeowners insurance, stating that a household is created by "(1) living together; (2) by related blood, adoption or marriage; (3) residing together." Others have focused on the terms "common residence" and "occupants" as key terms when assessing a definition of a household. A 1993 Illinois state court defined "household" in the context of homeowners insurance as "the place where one actually lives and has a family residence; the members of a family living together as a unit."
Moreover, a 2012 New Jersey state court focused on the terms "the unit" and "unit" within the context of liability, stating that the term "unit" refers to a "single person, family, group, or group structure . " It went on to rely on Merriam-Webster’s dictionary to determine that the plural form of units ("households") means "a social unit composed of those who live together, including their nonhuman resource sharing and joint culture." The Merriam-Webster Alternate Definition cited by the court defines a "household" as "one that lives in the same dwelling and usually under the same roof often with several generations of a family, with the common use of money, interest of each in the activities and goals of the others, and some degree of interdependence."
Similar to other courts, decisions involving automobile insurance policies and coverage have also relied heavily on the definitional provisions of policies themselves when assessing the inclusion of non-relatives. An interesting decision out of New Jersey held that a household is determined by the nature of the relationship between individuals sharing a common residence. The Supreme Court of New Jersey held that interpreting the term household—when unmodified by a policy definition or otherwise—will be determined based on context and will likely include individuals that share a "basic economic and emotional relationship." Unfortunately, as this case illustrates, there are often no unequivocal meanings and juristic practices often yield different interpretations of the term ‘household’ in general.
As these examples illustrate, no universal definition pervades and courts continue to interpret the term in different ways. While some jurisdictions have attempted to clarify the term, others remain more nebulous.
Why the Legal Definition Matters in Family Law
Understanding the Legal Definition of Household in North Carolina
The legal definition of a household is particularly important because it establishes the boundaries of who is entitled to benefit from particular provisions of law, and it also helps define the quantum of moral obligation to be considered in a given circumstance. For example, the provisions of child support obligate two parents (the household parents) to financially support their own children until the children become adults. A household parent may not enter into an agreement with another party making that other party responsible for the support of the children common to the household parents. It is understood – and express legal preemption in North Carolina laws occurs – only to the extent that financial contributions of third parties continue to authorize the household parents access to, and alliance over, the resources of the household. In effect, inclusion on the household support registry may provide individuals assurance of support obligation by parents without the responsibility of such an obligation. On the other hand, in divorce proceedings, the ability of a parent to pursue continuing child or spousal support varies depending on whether both parents reside in the same household and the circumstances on which such individuals reside in the same household. For example, two parents may enter into an agreement to pay each other periodic support. If, on the other hand, one parent becomes associated with a new household and the another parent remains in the original household, the nonresidency parent may elect to terminate the support obligation to the other parent or remain obligated based on written agreement. The result of these two approaches results in appreciable differences between the ability of the parent to support his or her household and the liability generated in the new household. The concept of a household permeates the entirety of marital and family law practice. From the assessment of marital misconduct during separation proceeding to equitable distribution proceedings, or alimony proceedings, the distinction between a household and independent individuals provides the foundation for a full assessment of the issues presented to the court.
Definition of Household for Tax Purposes
From a tax perspective, the definition of household has even greater significance and can affect filing status, determine whether someone qualifies as a dependent and even allow filers to access tax deductions or other benefits they would otherwise not have substantive access to. In a general sense, families in a single household are permitted to pool their income together to reduce their tax liability.
Filing Status – The first significant impact an individual’s household can have on filing status is the ability to file a tax return as a qualified head of household. An unmarried person needs to be able to demonstrate that they pay more than half the expenses required to maintain a home where they live for more than half the tax year with a qualifying child or dependent to qualify for this status.
Dependents – The second major way a household can impact a taxpayer is by determining whether an individual qualifies as a dependent. The IRS simply defines a dependent as someone who relies on your support. There are two tiers of dependency. Someone can either qualify as a qualifying child or a qualifying relative. Each of these categories comes with its own specific set of tests, each of which must be met to qualify. Failure to satisfy just one will mean that the dependent cannot be claimed for tax purposes. The differentiation between types of dependents is found in Internal Revenue Code § 152.
Deductions – Lastly, individuals who file a tax return and claim dependents, as well as those who don’t file at all, often benefit from tax deductions that are strictly based on their household makeup. Many credits are based on the number and relationship to a taxpayer of non-emancipated children, while others can be affected by whether an individual provides support to a parent, grandparent or other family member. One of the most commonly known of these credits is the Child Tax Credit, which is a tax credit of up to $1,000 for each person who qualifies as a dependent under the definition of qualifying child.
Between the various tax benefits that are tied directly to household definitions and categories — encouraging families to live together in a single residence — the need for proper legal definitions and considerations of household structures is necessary.
Implications for Social Services and Provisions
The definition of a household has important implications for social services and benefits eligibility. In many instances, the definition of household is explicitly stated within the enabling statute, just as it is in the HRA household definition. Other times, however, a statutory provision will explicitly define household members but then also include subsequent definitions that imply the statute’s intended definition of household is not limited to those categories of eligible individuals.
For example, within the provisions of the New York City Administrative Code relating to the city’s laws governing affordable housing, one finds the following definition of household member: "Household member of a tenant shall mean a spouse, child, stepchild, parent, stepparent, sibling or stepsibling residing within the household or any other person residing within the household who is a legally dependent of such tenant, or of such tenant’s spouse…."
That seems straightforward enough, but then we see the use of the term "other person". The logical conclusion is that any other person could include, without limitation, grandparents, grandchildren, and/or "roommates".
A similar but even more expansive provision can be found in the Kingston, New York Administrative Code, which uses the term "household" in conjunction with the term "substantial and continuous" to determine an individual’s qualification for housing. The Kingston statute defines "household" as "two or more persons, established as a family unit, including all children of the head of the family." The "head of a household" is defined as "a person who is a parent, grandparent, spouse, cohabitant, brother, sister, child, grandchild, ex-spouse, or party to a committed intimate relationship with a member of the housing-eligible group, provided that at least two members of that group are related" (Emphasis added).
In some cases, recipients of public benefits, such as public assistance, may be required to name everyone residing in the home. Such applicants risk jeopardizing their receipt of benefits if they fail to identify all family members in the household. Further, becoming a public assistance household creates additional issues. For example, dependency status may require the school-age children of welfare recipients to attend schools located in "poor" or low-income neighborhoods, as opposed to neighborhoods in which the parents or guardians can afford to rent or purchase a home.
Eligibility for public housing may also be affected by household makeup. At the same time, with limited exceptions, applicants for public housing generally must be independently income-eligible without regard to household composition. However, many public housing agencies will increase income limits for households with dependents. Further, public housing subsidy relies on selecting eligible applicants in need of the greatest subsidy within a designated rent-band.
Food stamp eligibility is also a function of household makeup. A household is defined as "any group of individuals who live together and whose income and resources are available to the household for its use in meeting the food stamp needs of all the persons in the household." SNAP customers with an income greater than 130% FPL receive reduced food stamp benefits because their benefit levels are calculated annually based on their gross income.
Given the overwhelming array of laws defining "household" in such varying ways, the impact of this particular legal definition seems far-reaching. From housing access and education to food stamps, household make-up will undoubtedly have a notable effect on one’s life.
Variations in Different Jurisdictions
As is common in law, state, country, and even local jurisdictions interpret and codify the definition of household differently. In the United Kingdom, the UK Supreme Court case of Stock v Frank Jones (Tipton) Ltd 1978 provides some admitted guidance into the matter of who constitutes members of the household of the injured claimant.
In terms of a journey made by the Claimant, the House of Lords held that people could be in the same household if they were "living under the one roof together". A roof was not essential, however, and even strong physical connections did not necessarily mean people were living under the same roof. For example, persons on two ships moored alongside each other could be said to be members of the household of a person aboard one of those ships. In contrast, individuals living in separate flats in the same block were held not to be members of one household.
In the United States, many states and courts have held that mere physical proximity was insufficient to define a household, and the relationships between members of the household were paramount.
In Hawaii, the Hawaii Supreme Court awarded death benefits to the surviving domestic partner of the deceased under the state’s workers’ compensation statute. The Court granted benefits after finding that whomever is a "dependent" could potentially be covered under the workers’ compensation statute. In Holder v. State of Hawaii , Dept. of Education, the widow of a school teacher and the children of his deceased partner sought death benefits on behalf of the teacher’s domestic partner. The Hawaii Supreme Court found that whether a non-spouse could be a dependent of a workers’ compensation claimant requires that the Court balance public policy against an interpretation of the statute that would give effect to the statute’s remedial purpose and result in the just and equitable solution to a problem. The Court concluded that the nature and extent of the relationship must be such that the dependent relies primarily on the employee for support, or the employee primarily supports the dependent. The Court finally found that, although "the specific situations giving rise to public policy considerations will vary from situation to situation, the public policy considerations involved in this case do not outweigh a broad construction of [the statute’s] remedial purpose." The court also concluded that "the relationship suggested in HRS [the Hawaii Revised Statutes] § 386-44 – of a domestic partnership – is the most similar modern association to that of a husband and widow."
Ambiguity and Interpretation Issues
The ambiguities of the legal definition of a household and the difficulties in properly interpreting that definition have resulted in a number of disputes. These disputes often fall into several categories: (i) whether the parties intended to combine households during the marriage, (ii) the timing of the separation in relation to the valuation date, and (iii) whether the parties were living "separate and apart."
As noted above in the definition of a legal "household," post-separation activities are generally not included in the legal household if the parties resume living together before the expiration of the 90 days immediately preceding separation (the "Valuation Date"). The definition includes the period of time that begins on the date of separation (which may be established under various grounds for divorce, such as abandonment, etc.) and ends on the Valuation Date. The date of separation is an important date in a marital settlement agreement or divorce litigation because it may have significant implications with respect to the valuation of a couple’s assets and liabilities. Whether the parties intend to end cohabitation on a particular date is often disputed among litigating parties. Further complicating matters is the ambiguous nature of what constitutes cohabitation for purposes of establishing a date of separation.
This ambiguity often results in disagreements about when actual cohabitation (versus mere separation) ended. Of course, many times the parties don’t agree on the proper date of separation. Co-habitating couples, who even have the common law spouse rules applied to them, usually enter into agreements about support, separate bedrooms, household chores, etc. Thus, an issue can arise as to whether the couple was actually living together after that date. Additionally, the infliction of domestic violence, the consent of the non-violent spouse, the voluntary absence of a spouse from the home due to abandonment or, in some cases, court order may establish a date of separation.
Evolution and Potential Revisions
As laws and regulation continue to evolve, the definition of a household is bound to change as well. Perhaps in response to the rising number of single-person households, policymakers and interest groups are likely to continue the trend of re-examining whether the traditional nuclear family remains a defining characteristic of what constitutes a household.
This past November, for example, Massachusetts voters passed a "right to repair" measure that mandates data-driven supply chains, increases fines for manufacturers who fail to provide repair materials , and requires manufacturers to make more information about parts and tools available to consumers and independent repair shops. In addition, this law allows for the expansion of "household" in the context of automobile repair, to include businesses and fleets of vehicles.
Moreover, the Census Bureau continually revises and improves the measurement of households as part of the decennial U.S. Census. While per the most recent data, there are 132 million households in the United States, the census is likely to continue to refine this number by refining its standards. Businesses that rely on the legal definition of a household should monitor any changes in policy-making surrounding the term.