Buying a home together is an exciting milestone for many couples. It can represent a new and exciting shared future as well as the opportunity to build something meaningful together.
While the process may feel similar to buying a home as a married couple, there are some important legal differences to consider. Thinking about those differences early can help prevent confusion and protect both partners.
Understanding your ownership choices before closing
When two unmarried people purchase a home together, deciding how the property will be owned is one of the most important steps. The way the deed is written can affect what happens if one owner passes away, wants to sell their share or if the relationship comes to an end.
Common ownership options include joint tenancy with the right of survivorship and tenancy in common, and each offers different rights and responsibilities. Choosing the option that best fits your situation is an important part of the home-buying process.
A cohabitation agreement can help protect your investment
It is also worth considering a cohabitation agreement before purchasing a home together. While couples who have only recently moved in together and own very little property may not need one, many people build savings, acquire valuable assets and take on shared financial responsibilities over time.
A cohabitation agreement is designed specifically for unmarried couples. It can outline who owns certain property, how household expenses and income will be handled and how the home or other property will be divided if the relationship ends. It can also establish a process for resolving disagreements, helping both partners avoid unnecessary conflict, legal expenses and uncertainty in the future.
If you are purchasing property with a partner and have questions about ownership or protecting your interests, speaking with a legal professional before closing can help you move forward with greater confidence.