Welcome to the DevoreRealtyGroup.com Blog

2019-06-10 12:29:48
Buying a home together if you aren’t legally married? Protect your investment.


WHEN UNMARRIED AND BUYING A HOME TOGETHER, LOVE MAY NOT BE ENOUGH

By Brett Stacy, American Financial Network
6/7/19

No married couple enters into the purchase of a home with the idea that they will break up. But life happens, and there are very clear laws that spell out the disposition of community property in the case of divorce. While these laws vary by state, they are intended to protect each of the home's owners when the union dissolves. Today, however, couples don't flock to the justice of the peace or stroll down the aisle to the altar in the numbers they used to. So what if you want to buy a home together and you're not married? What should you consider?

According to the most recent U.S. Census Bureau estimates that the proportion of young adults who live with an unmarried partner continues to rise. Among those ages 18–24, cohabitation is now more prevalent than living with a spouse: 9 percent lived with an unmarried partner in 2018, compared to 7 percent who lived with a spouse. In 2018, 15 percent of young adults ages 25–34 lived with an unmarried partner, up from 12 percent 10 years ago.

Lenders are often asked if it's a smart decision to start looking to buy a home if you are an unmarried couple. Perhaps you plan to marry or perhaps you want to get ahead of rising prices and interest rates. At any rate, you're ready to start your lives together in a place that doesn't belong to someone else. There are, however, some risks involved you should be aware of. Right off the bat, financial planners advise against it, according to an article in TIME Magazine: 'Buying a home is often the biggest and most financially complicated move a couple makes, and unwinding it can be especially difficult for unmarried partners if the relationship ends.'

In other words, love can sometimes conquer all, but it may fall short when it comes to buying a home together. You need legal protections should something happen to the relationship, even though it's uncomfortable to think about a breakup. Legal web site FindLaw says, 'Unlike married couples, the property rights for unmarried couples are not afforded the same legal protections. Since this is the case, it's in each person's best interest to write out a property agreement that spells out who owns what and how the property will be distributed should the couple separate. This is especially important if a couple acquires real estate together.'

A cohabitation agreement provides each person with some legal cover in case of a split, varying from state to state, so start with an attorney. Bankrate says there are a number of items that should be contained within the agreement, including type of ownership (joint tenancy with rights of survivorship or tenants in common), the percentage of the house each party owns, payment responsibility, a buyout agreement, job transfer protections, a spelled out dispute process and lastly, an exit strategy.

The only way to ensure you have an equitable right to your property is to make sure your name is on the title. MoneyTalkNews says it doesn't matter what verbal agreements were made or who paid the mortgage, so make sure both parties are named on the deed. How much do you know about your partner's record for financial responsibility? Is your own record squeaky clean? Checking each other's credit should give you each a good idea, but you can dig deeper and talk candidly about your individual philosophies on finances, committing to managing debt responsibly as a team. Start with your current expenses and scrutinize what debt you should pay off before committing to a mortgage. Your lender can help you carve the best path.

One of the leading causes of breakups and divorces is the handling of finances, and ongoing expenses are just one element of this. One of you may decide it's time to retire the older car and buy or lease a new one using credit, lowering his or her credit profile ahead of the home purchase. And many couples don't fully comprehend that owning a home means not only a down payment and closing costs, but property taxes and utilities, repairs and maintenance bills as well. Experts have studied how these are handled by couples and find they are rarely split 50-50, since one person may have more cash on hand and another may earn a higher salary, finding it easier to make mortgage payments. Student debt and credit scores are part of the snapshot as well.

NerdWallet says to approach buying a home together the way any engaged couple would and sign a prenup, specifying all the items just mentioned — all the 'what-ifs' — instead of waiting to see what happens and hoping for the best. While it may put a damper on romance, you may (unfortunately) find yourself being grateful for it later on.

 

Source: RealtyTimes, USCensus, Bankrate, FindLaw, NerdWallet, MoneyTalkNews, TBWS

 
Blog Archive
2019-06-10 12:29:48
Buying a home together if you aren’t legally married? Protect your investment.

2019-06-03 14:16:40
Realtor.com Ranks Top Investments

2019-05-28 14:27:35
Should I Wait to Move Out Until After I Sell My Home?

2019-05-22 12:56:03
U.S. New-Home Sales Rise to 16-Month High, Topping Estimates

2019-05-14 20:43:43
Why Countertops, Flooring, Lighting Costs Are Rising

2019-05-04 16:40:21
Report: Do Homeowners Fare Better Than Renters?

2019-04-29 09:56:18
U.S. New-Home Sales Rise to 16-Month High, Topping Estimates

2018-11-13 08:33:28
Economists weigh in on the real estate market

2018-10-28 07:52:37
Why waiting to buy can hurt your retirement

2018-10-21 07:41:53
The number one reason for mortgage declines

2018-10-06 07:16:58
The holidays may decide the fate of the housing market

2018-09-01 08:26:06
What will affect home values?

2018-08-18 05:54:04
Housing tipping to buyer's market

2018-08-18 05:48:22
Why Prop 5 restores fairness to tax system

2018-07-17 07:01:00
Is a 'Generational Housing Bubble' Taking Shape?

2018-06-08 06:17:19
How high will home prices go?

2018-03-08 05:34:07
Are Homes More Affordable Than We Thought?

2018-01-11 19:28:02
What home sellers can expect in 2018

2017-12-29 20:54:32
Most say tax law will change their plans to buy a home

2017-12-27 13:58:35
SD home prices rising at third-highest rate in nation

2017-12-22 08:07:11
5 Changes Under the New Tax Law

2017-12-15 06:41:40
No Housing Bubble...Yet

2017-11-03 06:56:40
San Diego home price increases outpace nation

2017-10-13 06:39:37
Homebuyers rush to riskier mortgages

2017-09-29 06:25:25
Why It's a Better Time for Buyers on a Budget to Purchase a Home

2017-09-03 11:28:07
My newfound purpose

2017-07-09 12:31:06
Is it time to sell, San Diego?

2017-07-04 07:59:54
The American Dream

2017-04-21 06:42:10
Why are renters staying put?

2017-04-20 06:49:29
Homeowner Value Estimates vs. Appraisals

2017-04-09 07:26:48
San Diego 8th Hottest Real Estate Market

2017-04-03 13:29:11
8 Questions to Ask When Deciding to Rent or Buy

2017-03-31 17:41:05
San Diego rent prices vs. home prices

2017-03-24 13:33:28
Preparing Your Budget for Buying Your First Home

2017-03-24 10:02:40
San Diego home prices dip in February

2017-03-15 17:54:30
County Housing Patterns Shifting

2017-03-03 11:32:47
Where millennials want to live might surprise you

2017-02-27 13:41:52
Misleading Math Behind the Rent vs Buy Calculation

2017-02-24 10:38:59
Older Americans Face Challenges Aging in Place

2017-02-21 15:12:32
Moving Less in U.S.: American Dream Takes a Hit

2017-02-07 13:52:11
Millennials, Housing, and the American Dream

2017-02-01 11:50:46
20 Hottest Markets for U.S. Real Estate in January

2017-01-31 18:13:12
January, February Prime Months to Purchase a Home

2017-01-26 14:47:42
Home Buyer Challenges for 2017

2017-01-19 12:21:59
Nation's Priciest House: $250M

2017-01-13 14:17:03
Are local housing's price gains real?

2017-01-13 12:06:22
Housing Outlook 2017: Eight Predictions

2016-12-30 11:05:38
Trump Win Could Usher in Boom for U.S. Housing

2016-12-19 18:12:11
Is the Starter Home Coming Back?

2016-12-19 17:28:35
Interest rate increased, where will consumers feel

2016-12-19 16:47:51
Step Aside HAMP, There's a New Kid in Town

2016-12-08 17:45:40
Marketwatch Report November 2016

2016-12-08 17:10:21
FHA Loan Limits To Rise in 2017

2016-12-02 11:51:18
What Trump's Win Means for Southern CA Home Prices

2016-12-01 14:15:16
Median Home Price Surpasses $500,000

2016-11-28 11:22:51
Autonomous Cars Reshaping Residential Communities

2016-11-21 17:56:43
Is Home Equity Still a Retirement Failsafe?

2016-11-19 18:50:51
Is the ‘Trump Tantrum’ mortgage rate spike dri

2016-11-16 11:15:37
Millennials Aren't Settling In San Diego

2016-11-10 13:28:07
Trump victory- great divide among housing experts

2016-11-09 13:15:35
What does President Trump mean for the housing mar

2016-11-03 17:11:26
76% of Millennials Have Made Housing Compromises

2016-11-02 11:19:45
170K More Homes Needed in County By 2025

2016-11-01 16:09:32
Who needs location, location, location?

2016-11-01 10:45:08
Before you buy that home, avoid utility bill shock

2016-10-26 18:33:38
Why millennials are the future of real estate

2016-10-24 14:01:04
Surprising amount of first-timers buying homes

2016-10-17 16:05:07
Swanky new rental apartment could finally be yours

2016-10-13 11:32:21
Student loans & high rent weigh on homeownership

2016-10-06 15:58:51
C.A.R. 2017 California Housing Market Forecast

2016-09-30 17:54:25
These large metros are seeing the fastest growth

2016-09-26 18:20:00
10 ways to evaluate if a home will grow with you

2016-09-26 15:14:31
5 reasons home sellers are sitting on the fence

2016-09-23 18:17:52
Renovating Homeowners Embrace Smart Technology

2016-09-12 18:37:28
Gender disparity in mortgages

2016-09-09 12:14:46
9 Home-Buying Myths You Need to Stop Believing

2016-09-08 18:48:49
The best time in history to invest in real estate

2016-08-31 18:34:27
San Diego home price gains one of biggest in CA

2016-08-29 17:23:22
Post-Recession, homeowners vs. renters

2016-08-29 16:05:11
America's 20 Hottest Real Estate Markets in August

2016-08-25 18:14:25
The Power of Words When Selling a Home

2016-08-24 12:59:22
Negative equity rate keeps lowering for SD homes

2016-08-22 12:17:51
CA home sales and median price decrease in July

2016-08-19 17:24:01
Multigenerational Living is on the Rise

2016-08-19 11:48:50
American Dream is alive, but out of reach for many

2016-08-15 16:23:58
Quicken Loans: Homeowners overestimate home values

2016-08-15 11:17:21
Make Your Home More Appealing to Young Buyers

2016-07-27 11:29:37
San Diego County median home price up by 6.4%

2016-07-20 15:48:08
San Diego County home price reaches $495,000

2016-07-07 12:23:30
Forecast Projects Increase of 5.3% by May 2017

2016-06-29 12:49:11
Millions of Baby Boomers Prefer to Rent

2016-06-28 17:39:38
Would you pay $800,000 for a container house?

2016-06-27 17:35:01
San Diego's Real Estate Ranking June 2016

2016-06-27 11:51:49
Presidential elections & CA's housing market

2016-06-17 06:44:05
Student loan debt is hurting the housing market

2016-05-29 09:09:52
Are Millenials engaged in the American dream?

2015-11-13 11:06:07
Will the Fed Liftoff Be Delayed?

2015-09-02 06:33:40
Foreclosure rates decreasing in US, California, an

2015-09-02 06:10:12
Resale home prices keep climing in SD, elsewhere

2014-06-06 07:07:20
San Diego Foreclosure News

2014-02-28 09:45:46
Bryan & Allison's Real Estate Report - 2/28/14

2014-02-17 08:19:47
Bryan & Allison's Real Estate Report - 2/17/14

2014-02-02 17:06:01
Bryan & Allison's Real Estate Report - 2/2/14

2014-01-24 07:07:08
Bryan & Allison's Real Estate Report - 1/24/14

2013-12-31 11:39:35
Bryan & Allison's Real Estate Report - 12/31/13

2013-12-15 09:33:43
Bryan & Allison's Real Estate Report - 12/15/13

2013-12-03 06:23:37
Bryan & Allison's Real Estate Report - 12/3/13

2013-11-21 07:17:08
Bryan & Allison's Real Estate Report - 11/21/13

2013-11-10 07:54:37
Bryan & Allison's Real Estate Report - 11/12/13

2013-10-28 10:15:18
As heard on ESPN Radio AM1700 today!

2013-10-10 07:01:39
Bryan & Allison's Real Estate Report - 10/10/13

2013-09-22 15:01:35
Bryan & Allison's Real Estate Report - 9/23/13

2013-09-02 07:29:26
Bryan & Allison's Real Estate Report - 9/2/13

2013-08-18 07:28:19
Real Estate Report for 8/18/13

2013-08-04 04:40:25
Real Estate Report for 8/4/13

2013-07-27 08:17:54
Real Estate Report for 7/27/13

2013-07-18 07:21:24
Real Estate Report for 7/18/13

2013-06-30 09:28:27
Real Estate Report for 7/1/13

2013-06-12 08:10:43
Real Estate Report for 6/12/13

2013-05-30 07:56:40
Real Estate Report for 5/30/13

2013-05-21 07:32:44
Real Estate Report for 5/21/13

2013-05-07 06:54:02
Weekly Real Estate Report for 5/7/13

2013-04-29 07:20:11
Weekly Real Estate Report for 4/29/13

2013-04-19 07:39:32
Weekly Real Estate Report for 4/20/13

2013-03-06 22:23:40
Bryan & Allison Devore Recognized as Top Producing

2013-02-28 08:11:59
Get informed with these great articles

2013-02-10 18:31:25
Who to believe?

2013-01-24 07:39:37
The latest in real estate...quick and easy!

2013-01-10 08:25:50
A New Year - But What About The Old One?

2012-12-29 18:34:15
Real Estate Year In Review

2012-12-11 11:08:30
Bryan & Allison's Real Estate Tuesday Talk

2012-11-20 07:57:24
Prices and foreclosures...good news!

2012-11-07 18:49:11
Housing prices continue to rise, but...

2012-11-02 08:10:03
This week in real estate

2012-10-24 13:03:51
Some interesting news for a Wednesday

2012-10-21 09:21:54
Low inventory affecting state and nation

2012-10-20 12:37:31
What will the market look like next year?

2012-10-17 08:03:01
The real estate recovery is for real this time

2012-10-10 07:58:26
Foreclosure numbers continue their decline

2012-10-06 09:28:05
CoreLogic Report Shows Prices Continue Increasing

2012-09-29 08:33:58
Reports on Home Prices

2012-08-30 10:04:57
Finally...the media is paying attention!

2012-08-26 10:54:39
More positive news in the world of real estate

2012-08-21 21:00:15
Fast start to the week in the world of real estate

2012-08-18 10:22:23
This week in real estate

2012-08-14 09:06:11
Are appraisals coming in too low?

2012-08-10 07:40:56
So there you have it!

2012-08-09 17:43:03
Foreclosures in San Diego County are mixed

2012-08-08 07:52:08
Home sales up - and down

2012-08-07 08:55:12
If you are renting, should you buy?

2012-08-06 18:35:08
The debate on principal reduction livens

2012-08-06 18:31:21
Prepping for the summer wave of short sales

2012-08-01 08:27:08
More evidence that foreclosures are down

2012-07-31 18:04:45
What are you paying for your housing?

2012-07-31 15:53:45
Fewer homes for more competing buyers

2012-07-31 15:45:25
S&P/Case-Shiller Index shows prices increasing

2012-07-30 08:32:37
Take 1 minute to get caught up!

2012-07-30 08:18:04
A first in 5 years!

2012-07-30 08:05:49
More good news for the foreclosure market

2012-07-24 08:39:18
It's easy being green...but is it profitable?

2012-07-24 08:37:56
Obama Administration releases Housing Scorecard

2012-07-22 08:57:39
Do you have a home equity line?

2012-07-21 09:06:33
The sad truth about the foreclosure crisis

2012-07-18 08:09:16
Home prices in So. Cal. - more good news

2012-07-16 22:40:03
This month's HomeDex Report

2012-07-16 21:31:20
This month's TrendGraphix report for Carlsbad

2012-07-11 08:27:13
Prices up, sales up BIG

2012-07-10 07:30:27
Foreclosure numbers down BIG

2012-07-05 08:54:21
Another good reason to buy

2012-07-05 08:43:39
Another sign of an improving real estate market -

2012-07-03 10:04:32
Finally...real help for underwater homeowners

2012-06-29 07:39:28
This month's HomeDex Report

2012-06-29 07:37:06
More great news about the real estate market

2012-06-29 05:55:02
Why the housing recovery is taking longer than it

2012-06-27 08:20:17
Further insight into the low housing inventory

2012-06-24 08:31:42
Win a $20,000 home makeover!

2012-06-11 07:38:55
Is the market bottoming out? Let's ask!

2012-06-10 07:43:29
Obama Administration releases May Housing Scorecar

2012-06-10 07:24:24
Fighting lowball appraisals

2012-06-09 15:09:39
Foreclosure numbers showing continuing stabilizati

2012-06-07 18:43:22
Will short sale help be coming to an end?

2012-06-02 09:00:35
Foreclosed homeowners finding their way back to ho

2012-06-01 14:49:44
Sales of Foreclosure Homes Up in the Nation and St

2012-05-26 08:01:45
Mortgage delinquencies continue their decline

2012-05-26 08:00:49
Improving your credit score

2012-05-26 08:00:15
Even Time Magazine says now is the time to buy

2012-05-22 07:07:59
Home affordability at an all time high

2012-02-08 07:30:28
Stay Updated On The World of Real Estate

2012-02-03 07:42:24
Didn't get the modification you wanted? Now there

2012-02-03 06:35:30
Obama Administration Changes Refinancing Plan For

2012-01-28 09:44:30
Where should home builders be building?


Comment on this Article

Your Name:
Your Email:
Comments:
Verify:  Please enter the numbers shown to help eliminate spam.