The Perils of Unwed Partners Buying Property
Every couple in love has problems visualizing a time that they won't "be together" and discussing "what if" scenarios is not something they're keen on doing. But, if they're thinking of buying a home together, Ed Silva does a great job pointing out some of the possible pitfalls. Unwed partners might do well to remember "an ounce of prevention is worth a pound of cure" and to look before they leap.
The Perils of Unwed Partners Buying Property
So many people have the desire to own property as a way to establish permanency and build a comfortable home with limited outside interference. With a more traditional married couple it is somewhat easy, depending on the state of their finances. For less traditional, non-married couples there may be issues with the purchase because of credit but that’s where the easy part is resolved.
Not all relationships remain harmonious and if there is a separation of the couple, the property held jointly can be a real problem to liquidate. I have recently had two instances where the sale of a home, with a non-traditional couple required extensive legal proceedings before the home was ready to be listed.
Un-wed Younger Couple: Love blossomed with the couple and they professed their deep devotion to each other and were a couple with children for 10 years, never becoming a legally married couple. One spouse found out about the other’s infidelity and the dissolution of the couple was underway. There was however the matter of the home they lived in as well as the rental property they had purchased during the ‘happy’ period. The wife was the key wage earner and funded the purchases, but the properties were in both names for mortgage. She wanted to sell the homes and move on with her life, but he refused especially as he was collecting the rents from the rental properties and was unemployed. No one was paying the mortgage, however, as neither wanted to cave to the other.
It was necessary for them to get lawyers and go through a ‘divorce’ process to get the sales issue resolved, which also turned into a costly mess. It may not have been much easier had they been married, but the evidence of who had how much and to who was entitlement for majority shares may have been easier to define.
Un-wed Older Couple: People in their twilight years can find comfort in another partner, but don’t want to make a marital commitment for any number of reasons. If one owned a residence, the ownership issue is very well defined. Not always the case when they decide to purchase late in life and are still unwed. The problem will be huge if one dies and heirs of both families may be looking for their equity portion of the home. Unless there is an agreement in writing, a relationship contract, again legal intervention will be required.
This is not to say that unwed partners should not buy real estate, but prior to closing, the equity positions of each partner should be clearly defined and executed in a document just in the event of something happening to one of the partners, or dissolution of the relationship. A moment of caution at the beginning, at a minimum of cost, can save so much money and angst later.
The Perils of Unwed Partners Buying Property
Search for all Connecticut homes
Do you know somebody who is behind on their mortgage and doesn't know what to do? I may be able to help them, especially if they are facing foreclosure!
Visit my Short Sale Help site: www.ctshortsalessite.com
Whether looking to buy or sell, we service the Greater Waterbury towns of Beacon Falls, Bethany, Cheshire, Naugatuck, Middlebury, Southington, Thomaston, Waterbury, Watertown and Wolcott
Ed Silva RE/MAX Professionals, www.edwardsilva.com 203-206-0754
Comments(10)