Financial Considerations When Buying A property When Unmarried
Buying a property when unmarried is incredibly commonplace for this generation. While our parents or grandparents may have gotten married and then moved in together or bought a property that isn’t as common now. Me and Luke got the keys to our house last February and we’re currently unmarried. When we put in our offer and applied for our mortgage we weren’t even engage. Even though we knew marriage was on the cards for us at some point. But not every couple want or plan to get married.
There’s a myth that couples who live together for long enough have a ‘common law’ marriage. But in reality the law desn’t recognise cohabiting couples in the same way as it does married couples. Despite the fact that cohabiting couples are the fastest growing type of family in England. One in every five families are cohabiting couples.
But what do you need to know about buying a property when unmarried? What financial considerations do you need to make?
Buying a property when unmarried- does it matter?
If a couple is married there are legal protections in place to protect both parties as much as possible if they divorce/ split up, or one of the couple passes away. However if a couple buy a property together without being married, then property law applies if they seperate. Property law is a lot stricter than divorce law. So it can lead to unfair outcomes for unmarried couples who split up.
Being married isn’t better than cohabiting, but you need to be aware that you won’t have the same protection if you’re unmarried.
What happens to your property if you’re unmarried
If you’re a cohabiting couple and you seperate then who keeps the property is governed by what the title deeds and any accompanying declaration of trust shows. The property may be held in joint names or a sole name. And it could be owened as tenants in common or joint tenants.
If a couple owned a property as joint tenants and it came time to sell, any proceeds would be split equally between them. But if the property was owned as tenants in common then the proceeds would be divided according to their shares in the property. If the property is bought in one person’s sole name then that person will be entitled to 100% of the proceeds. Leaving the other person with nothing. Even if that other person was paying 50% of all of the mortgage payments and bills etc.
Property law generally doesn’t take into account these contributions made during the relationship- financial or otherwise. And whether they’ll be left with enough money to re-house is not taken into consideration.
What happens to your property if you’re married
Division of property on divorce starts at 50:50, but this can change depending on the needs of the parties. For example if the couple has children then the property sale will be divided in a way that ensures the kids needs are met first. So if one spouse needed more money in order to buy a property for them to live in with kids then they could argue to have a greater share of the property sale.
Financial considerations to make when buying a property unmarried
It is being looked into to see what legal protection for cohabitants looks like. And whether cohabiting partners should have the same rights as those that are married. With lockdown a lot of people have had their weddings cancelled or pushed back. And some have seen it as a sign that they don’t need to get married any longer. And a lot of couples started cohabiting when lockdown hit as a way to be able to see one another during the tough months.
Some things you should think about or do when buying unmarried:
- Communicate with each other. It’s so important to have a conversation about buying a property when unmarried. Talk about the situation you’re in and make sure you’re both on the same page if you did split up.
- Write a legally binding document. You can get a solicitor to witness legal documentation to use if you’re unmarried if you want a particular split of property when sold.
- Create wills. If you’re unmarried then your half of the property won’t automatically go to your partner if you pass away. But if you create a will you can set out exactly what would happen.
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19 responses to “Financial Considerations When Buying A property When Unmarried”
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Rhian Westbury
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Some great tips here Rhian, thanks so much for sharing. It is a big cost when in a couple, doubly so when not in a partnership or waiting to be married.
My husband and I had a few properties before we were married and it is definitely right to think it through and get sound advice of how to deal with the finances and legalities. Mich x
You never want to think these things but it’s always worth being prepared for x
This is great information to have! When Married it is a lot different.
This post will help so many, as you said cohabiting is more common now and I find more couples are doing this, I personally know a few friends who have purchased a property and aren’t married. This was an interesting read x
It is so common and I think it’s just knowing your rights and whether you need to get documents signed beforehand to help prevent any potential future issues x
This is great info for those that are looking to buy. We are in the process right now.
Quite an interesting article. Great tips for unmarried couples wanting to buy a property.
I think it’s best to get the property after being married. No one wants to think of divorce, but the divorce rate is pretty high, so better safe than sorry.
It is sad that divorce rates are high so it pays to be prepared, but it’s so common now for people to buy together before being married x
This was a really interesting and informative post. I’m married so the legal imlications are obviously different for me but my brother and partner just bought a property and aren’t married. I think they would both find this informative. It’s a shame those that are not married are not equally covered.
It’s really tough. When me and my fiance bought we wrote up a doc that was witnessed and signed to cover us just in case, but it’s something you don’t really want to think about x
So important to protect you finances in any situation. Great advice for those planning to buy a home together.
Definitely so much to know and take in before you jump into combining finances and assets. Great info..thanks for sharing!
Some very interesting points and great advise, especially about making a contract even you’re buying together but aren’t married or in a civil union.
You have listed some key important factors for those who are unmarried but want to buy a property together. Luckily I am married so things are slightly more clearer
Looks like nice information for unmarried, singe, seperated people. I’ll spread this to my friends and family! Thanks for sharing!
Thank you for the tips and for sure… if I am single I am buying the house myself so that I am secure and cannot have it taken from me. If I am married… that is a different story š
This is such a helpful post for those who are unmarried and planning to buy a property now! Great tips, I’ll share this with my friends