Submitted by B.J. Abbott on
Purchasing a home with a significant other can be an exciting step in a relationship. However, unlike married couples, unmarried partners in Georgia do not receive many of the legal protections that accompany marriage. If the relationship ends, disputes over ownership, expenses, and equity can quickly become costly and contentious.
Before purchasing property together, consider the following steps to protect your financial interests.
1. Put Everything in Writing
One of the biggest mistakes unmarried couples make is relying on verbal agreements.
Before closing on the property, consider entering into a written co-ownership agreement that addresses:
- Ownership percentages
- Responsibility for the down payment
- Allocation of mortgage payments
- Payment of taxes, insurance, and maintenance expenses
- How major repairs will be handled
- What happens if one party wants to sell
- Procedures if the relationship ends
A well-drafted agreement can prevent misunderstandings and provide a roadmap if circumstances change.
2. Choose the Right Form of Ownership
Georgia recognizes several ways to hold title to real estate. The way you take title can have significant consequences.
Joint Tenancy with Right of Survivorship
If one owner dies, the surviving owner automatically inherits the deceased owner’s interest without probate.
This option may be attractive for couples who intend for the property to pass directly to the surviving partner.
Tenancy in Common
Each owner holds a separate interest in the property. Ownership percentages can be equal or unequal.
If one owner dies, that owner’s interest passes according to their will or through Georgia’s intestacy laws rather than automatically transferring to the surviving co-owner.
Many unmarried couples choose tenancy in common when they contribute different amounts toward the purchase.
3. Document Contributions
Keep detailed records of:
- Down payment contributions
- Closing costs
- Mortgage payments
- Renovation expenses
- Major repairs and improvements
If a dispute arises later, documentation can be critical in proving each person’s financial contribution and ownership interest.
4. Address What Happens If You Break Up
Many couples never discuss this possibility, but it is one of the most important issues to address before purchasing.
Your agreement should consider:
- Whether one party can buy out the other
- How the property’s value will be determined
- Deadlines for refinancing
- Whether the home must be sold
- How sale proceeds will be divided
Having a clear exit strategy can save significant legal fees later.
5. Consider Estate Planning
Unmarried partners generally do not have the same inheritance rights as spouses under Georgia law.
Consider:
- Wills
- Financial powers of attorney
- Advance healthcare directives
- Beneficiary designations
- Trust planning, when appropriate
Without proper planning, your partner may receive little or nothing from your estate, even if you jointly own property.
6. Understand Mortgage Liability
Even if only one person’s name is on the deed, both parties may be liable if both sign the mortgage.
Likewise, being on the deed does not necessarily mean you are responsible for the loan.
Before closing, understand exactly:
- Who is borrowing the money
- Who is responsible for repayment
- How missed payments could affect credit
7. Protect Yourself if Contributions Are Unequal
It is common for one partner to contribute substantially more toward the down payment or ongoing expenses.
Consider documenting:
- Initial contributions
- Whether contributions are loans or gifts
- Reimbursement rights upon sale
- Ownership percentages that reflect actual investments
Without a written agreement, a court may face significant difficulty determining each party’s intentions.
8. Review Insurance Coverage
Ensure adequate:
- Homeowners insurance
- Liability coverage
- Umbrella insurance, if appropriate
- Life insurance if one party depends on the other’s income to maintain the property
Insurance can provide important protection if unexpected events occur.
Common Mistakes Unmarried Couples Make
- Failing to put agreements in writing
- Assuming Georgia law treats them like married couples
- Not documenting financial contributions
- Taking title without understanding the consequences
- Ignoring estate planning issues
- Waiting until after a breakup to address ownership disputes
Final Thoughts
Buying real estate with an unmarried partner can be a smart investment, but it requires careful planning. A written co-ownership agreement, proper title selection, clear documentation of contributions, and estate planning can significantly reduce the risk of future disputes.
For couples purchasing property in Georgia, consulting with both a real estate attorney and a family law attorney before closing can help ensure that everyone’s interests are protected and that expectations are clearly defined from the outset.
This article is for informational purposes only and does not constitute legal advice. Individuals should consult a qualified Georgia attorney regarding their specific circumstances.
