One of the biggest decisions adults will make in their lifetime involves purchasing a home. It’s a long term commitment and, for many, one of the most expensive purchases they will make. Another commitment a number of adults will make in their lifetime is to live with their significant other and purchase a home together. Yet, it isn’t always a married couple that is deciding to make a home purchase together. In fact, the number of unwed couples living together has increased almost 30% since 2007, according to the U.S. Census Bureau.
According to an article, published by Bankrate.com, there can be some considerations that unmarried couples should account for as they decide to purchase a home together since property laws don’t protect the individuals if the couple separates or one person passes away. In the article, journalist Natalie Campisi states, “Because the law treats unmarried couples like individuals when it comes to assets like real estate, it’s up to the couple to write their own rules that will dictate how their property is handled in the event of separation or death.”
The article suggests couples agree to a “cohabitation property agreement” which touches on areas such as the percentage of the house each party owns, a buyout agreement, and exit strategy among others. It may be a difficult conversation to have in the midst of the excitement that comes along with an momentous life decision. Yet, its financially wise to plan for the unexpected, even if it seems unlikely or impossible.
Read the entire article for more tips and advice.