Let’s Buy A House Together: The Pitfalls of Owning Real Estate with A Partner Who is Not Your Spouse

By: Janice Dantes

 

So you meet someone and you’re in love. The housing market is red hot. You find a house and fall in love with it. You and your partner decide you want to purchase the home but marriage is not something you want to discuss yet. Do you buy the house?

1. Don’t Put a Mortgage on It Before He Puts a Ring on It. The issue with buying a house before you are married is that you cannot utilize the protections of the divorce court. Most people do not even enter into a written agreement with a partner they are not married to with regard to their responsibilities in owning a home. If the relationship goes south, there is usually disagreement with how to divide the home and equity. A home is something you cannot cut in half between two people.

2. Partition Lawsuits in Chancery Court. There are three options for settling the division of the home: 1) You buy your partner out; 2) your partner buys you out; 3) you sell the home and divide t he proceeds. The issue is that the parties typically disagree on the value o f the home, each person’s contribution, and who can/should reside in the home. As a result, the parties need to rely on experts such as independent appraisals and the experience of the court to assist them in getting out o f their arrangement. This can also lead to very uncomfortable living arrangements if the parties cannot decide who leaves.

3. Financial difficulties. Last, the most difficult part of getting out of a home purchase with an ex-partner is the financial strain of undoing this arrangement. Most people cannot afford a mortgage and rent at the same time. This is what may be required to secure your inter-est in the property purchased while maintaining your sanity. Further, having a mortgage makes it difficult to make another large purchase.

Think really hard before purchasing a house with a partner you are not married to. If you are unsure, just rent.

If you would like to discuss this sensitive topic, please call (312) 546-5077 or email janice@ pinaylaw.com.

Thank you for reading. Until we meet again, love one another