12 Jan Real Estate Decisions for Unmarried Couples
What to Know If Circumstances Change
For many unmarried couples, buying real estate together is a meaningful step.
It reflects a shared commitment. Building a life, investing together, or establishing stability before marriage. What’s talked about far less often is what happens if the relationship changes.
Unlike married couples, unmarried partners typically do not benefit from default legal protections that govern property division, survivorship, or decision-making. When expectations aren’t clearly documented in advance, jointly owned property can quickly become a source of confusion and conflict.
Understanding how property ownership works, and how it is treated when relationships end, is essential for protecting yourself and preserving flexibility.
How Property Ownership Typically Works for Unmarried Couples
While property law varies by state, most states recognize similar forms of co-ownership. The way real estate is titled largely determines what rights each owner has, how decisions are made, and what happens upon death or separation.For unmarried couples, property is most commonly held as joint tenants or tenants in common.
Joint Tenancy
In a joint tenancy, two or more owners generally hold equal ownership interests in the property. This form of ownership is often associated with the concept of right of survivorship. This means that when one owner dies, their interest automatically passes to the surviving owner, without needing to go through probate court.
Joint tenancy can be useful in some situations, but it also carries risks. Ownership interests are typically equal, regardless of unequal financial contributions. Survivorship rights may override an owner’s estate plan. Ending the relationship does not automatically sever the ownership structure.
Because of these features, joint tenancy should be used thoughtfully, particularly when owners are not married.
Tenancy in Common
Tenancy in common is often the default form of real estate co-ownership. It’s the most flexible form in many states when no other form is specified.
Key features generally include permitting unequal ownership interests. For example, if you’re putting more money into the property than your girlfriend or boyfriend, you can assign different ownership percentages to reflect that. Also, there is no right of survivorship. This means that when you die, your share typically passes to your heirs or beneficiaries as per your will or trust. Another characteristic of this form of ownership is that each owner may sell or transfer their interest, subject to any applicable agreements.
For unmarried couples, tenancy in common often provides more control, but it also places greater importance on clear planning and documentation.
Why Married-Couple Ownership Rules Usually Don’t Apply
Many states offer a special form of ownership for married couples (often called tenancy by the entirety or a similar concept). These forms typically provide survivorship rights and creditor protections that do not apply to unmarried partners.
As a result, unmarried couples must rely more heavily on intentional planning rather than legal defaults.
How to Confirm How Your Property Is Owned
The starting point is always the deed.
The deed will typically specify whether the property is held as joint tenants, tenants in common, or another recognized form of ownership. If the deed is silent, state law often supplies a default. But those defaults are not always intuitive or favorable.
A review of the deed can clarify rights and reveal planning gaps before they become problems.
If the Relationship Ends: Common Options
When unmarried co-owners separate, there are usually two practical paths forward: selling the property or one owner buying out the other.
Selling the Property
If both of you agree, selling the property and dividing the proceeds according to ownership interests is often the cleanest solution.
If both of you can’t agree, then most states provide a legal mechanism, often called a partition action, that allows a co-owner to ask a court to intervene. A court may order the property sold if dividing it physically is impractical or unfair.
While partition actions can resolve stalemates, they are often time-consuming, expensive, and stressful. Negotiated solutions are usually preferable when possible.
Buying Out One Owner’s Interest
In a buyout, one owner retains the property and compensates the other for their share.
Buyout amounts are typically based on the property’s fair market value, each owner’s ownership percentages, and relevant financial contributions (such as down payments, mortgage payments, or improvements). Professional appraisals are commonly used to establish value, providing a neutral reference point for negotiations.
Financing options often include personal funds, mortgage refinancing, or home-equity financing, subject to lender approval.
Why Formal Documentation is Key
Informal understandings are rarely sufficient when real estate is involved.
Whether selling or completing a buyout, ownership changes should be properly documented through updated deeds, written agreements, and clear allocation of financial responsibilities. This helps prevent future disputes and ensures enforceability.
Legal guidance is particularly valuable where significant assets, unequal contributions, or ongoing financial obligations are involved.
Perspective Matters
Owning property together outside of marriage can work, but going in with your eyes open is critical.
Clear ownership structures, written agreements, and an understanding of exit options allow couples to make decisions calmly rather than react under pressure. This is not about assuming a relationship will fail, it’s about respecting the complexity of shared ownership and planning accordingly.
Thoughtful planning preserves flexibility, protects investments, and reduces the risk that personal transitions turn into legal disputes.
We regularly advise business owners and affluent families on real-estate ownership, structuring, and exit planning, particularly where personal relationships and significant assets intersect. We work with a limited number of families each year to ensure the level of care and attention these matters deserve.
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