This article examines cohabitation among the unmarried, which is very common, particularly among the divorced. Unmarried cohabitation is in most cases associated with a substantially higher level of subjective well-being, but the importance of cohabitation depends on the time since the termination of the marriage. There is a substantial short-term negative effect of becoming widowed, but little or no long-term effect. The negative effect of divorce seems to be stable aver time, but this could be a result of differential selection for remarriage. For those who have established a new relationship of cohabitation during the first year after the marital separation, the separation seems to be a positive event. In contrast, the separated who live alone during the first year report very low levels of well-being.