Mortgage Warning for the Unmarried Couples Out There
If you are planning on buying a house together with your partner and yet you plan to stay unmarried, you might want to take some precautionary measures in case the romance goes bad and you are left in a huge financial tangle. Buying a house is just as messy as getting married so you will want to out a lot of thought and work into it. You must not overlook any important details lest you end up in some sort of battle with you ex in the future. There are some things that married couples do not have to do that you simply must do. It is not that they are discriminatory it s just that there are some legalities that you have to consider. Everything might be sunshine and roses now but that will not be the case forever and there is that possibility that you will get a nasty shock should you guys break up.
Imagine you buy a house together and sign as co-tenants; you may be in for a world of hurt. By signing as co-tenants, you agree that you own the house 50-50 and this is where the trouble may start. If you two do the unthinkable and split up and you end up paying all the mortgage, the person who cosigned with you may end up with half of the house should he make the claim; even after you have paid for all the mortgage payments. Does that sound like an unfair deal? It might but it has happened and it is certainly not a rare occurrence. Most unmarried couples sign as co-tenants and this means that whatever happens, the other person own 50% of that property. If you choose to sign as tenants-in-common, then you are saving yourself from a world of hurt.
Most people do not consider this because they think that they will never break up. But stuff happens no matter how unfortunate and it is always better to be sure than sorry at the end. Do make it a point to agree with your partner on things like mortgage payments and house ownership.