Cohabitation and Property:
In 2017, you may notice that more and more couples are choosing to not get married for a variety of reasons such as, the divorce rate being so high, wanting to protect themselves, they aren’t ready for the commitment, or just simply because they do not want to. Although these couples are not getting married, this is not preventing them from living together. When people living together break up, this can cause a variety of issues usually relating to the money and property. This may leave the couple wondering “who is liable for money owed on a lease?”, or “what happens to money that was combined into a single account?”, etc. It always makes sense to plan for the worst possible scenario. Many people do not expect an issue to arise, but are faced with the consequences later.
When an unmarried couple decides to buy property, this will make an impact on the different kinds of ownership available and how the property is divided if the relationship ends. The property is usually held through a joint tenancy.
Joint tenants share the ownership equally. If one party were to die, the other one automatically receives the deceased party’s share under the right of survivorship. Tenants-in-common each own a distinct share. One party might own 75% due to larger contribution and the other could hold only 25%. If the property is held in a single person’s name, this property belongs to them. The other party that might have been involved doesn’t have a claim. They would have to have written evidence or proof that they contributed to the cost, maintenance, etc.
Many unmarried couples prefer to rent. Mortgages tend to extend over a long period. Rentals are always relatively easy to terminate. If you are an unmarried couple that are planning to live together, then you might want to consider this option. The only negative about renting is that you will not retain equity. This is why a couple may choose to own a home.
Home ownership has financial and social advantaged. Making sure that a property is equally owned by both parties is an easy way to protect yourself against potential problems occurring in the future.
If you are in need of a family lawyer to help you in event that you and an ex partner is arguing over property or money, you can always call Palacios Law Group! We are here to help.