Subject: Do magnets work in outer space, particularly exactly between two planets?

I am involved in a trivia chalenge with a surgeon I work with. He attempts 
to stump me while we're operating. I have read on magma flows and magnetic 
charges generated from various means on Earth and the sun, but I am unable 
to discern if magnets will actually perform as on Earth in zero gravity 
situation, and if there is a boundary where magnetism changes or reverses 
in the outer atmosphere/ outer space (due to thermal climate or electrical 
generation at the comingling of two planets'atmospheres, ie: Mars and 
Earth). I am unable to sort it out without assistance, and my 
comprehension will be tested in support of my reply. I appreciate your 
assistance!

Re: Do magnets work in outer space, particularly exactly between two planets?