Unmarried Buyers and Real Estate
Many of today’s couples have opted for living together without the immediate exchange of wedding vows. The interplay between these living arrangements and home ownership can be a tricky proposition. Matrimonial Attorney, Alan Dubow has spend 25 years counseling clients who are ready to purchase real estate together, but who are not quite ready to tie the proverbial knot.
“I explain the benefits of a pre-nuptial agreement to couples. Pre-nups tackle tough issues of who gets to keep what property in the event of divorce. More often than not, couples do not feel they need a pre-nuptial agreement,” says Mr. Dubow. The question ultimately becomes, How should you hold real property you are buying? For unmarried couples, you have two choices.
Your first choice is holding property as a “Tenant in Common.” As a Tenant in Common, you are free to sell or devise (give away) your interest by Will. If you die as a Tenant in Common, your share does not automatically pass to your partner, but rather passes by Will. If you end your relationship, either person may buy out the other’s interest and fully own the property.
Your second alternative is “Joint Tenancy with Rights of Survivorship.” In the Joint Tenancy, each person is entitled to a full one hundred percent interest in the property. If you die, your partner, by operation of law, receives the entire property. A disadvantage in the Joint Tenancy is that the members of your family would have no right to receive any benefit in the event of your death, . By holding as Tenants in Common your family could inherit the benefit.
“Normally, I recommend a Tenants in Common approach to holding real estate before parties are married,” says Mr. Dubow “However, a careful examination of the parties circumstances and their intent must be weighed. The overriding concern is to avoid misunderstandings between the parties and friction between the couples’ respective families.”
If you are unmarried and are considering purchasing real estate, consult an attorney. Mr. Dubow is offering free consultations to AskRey.net readers. If you need Mr. Dubow's contact info….AskRey.