Homebuying as an Unmarried Couple: What To Consider

In 2023, 9% of all homebuyers were unmarried couples, according to the National Association of Realtors (NAR). Unmarried couples might decide to apply for loans and buy homes together after reviewing joint spending habits, monthly expenses and shared financial goals.

Going in on a home purchase together might be one way to make home ownership attainable, especially with the high cost of real estate. With such a big financial commitment, it's important to be clear about who is financially responsible for the mortgage and other costs, who is entitled to what portion of the asset — and to get your agreement in writing.

Unmarried Couples vs. Married Couples Buying a House

A lender can't discriminate against you if you buy a house as an unmarried couple or if you're in an unregistered domestic partnership. Lenders will evaluate your loan application as co-borrowers for the home loan if you buy a home together. If you apply as co-borrowers, both names are on the mortgage. But co-signing on a mortgage isn't the same as sharing ownership of a property.

There are legal mechanisms and title specifications you and your partner can use to ensure you both share ownership of the property as you intend to. (More about that later.)

Without a separate legal agreement in place or legal title held in both names, most ownership laws for couples rely on marriage, McKean noted. These rules vary depending on your state. Washington state applies community property law to property acquired during the marriage but not by gift or inheritance.

If the home was purchased during a marriage, Washington state law assumes the married couple shares equal (or "equitable") ownership regardless of whose name is on the bank mortgage or deed. In divorce, the court splits the community property equally or otherwise equitably.

Nearby states, such as Oregon, apply the same concept similarly, using "equitable distribution for division of assets," if purchased during a marriage or comingled during the marriage.

Worst-Case Scenarios

No one likes to consider a worst-case scenario. But if you and your partner aren't married or registered and you split up, or either of you dies without the proper agreement in place, you might face challenging legal and financial situations regarding your shared home.

If, for example, your partner dies without a will and an explicit agreement in place, claims to ownership of the home may need to be resolved by a court. Or you may find yourself fighting for the house or proceeds from the property sale with creditors who have a claim or heirs of the deceased partner, McKean said.

Dividing Assets for Unmarried Couples

Unmarried couples don't automatically benefit from marriage-based laws. For unmarried couples, division of assets relies on how the house title is structured regarding the home's legal ownership and (if no legally enforceable agreement is in place) how a judge interprets your relationship if you go to court. 

Much depends on whether the judge sees your unmarried partnership as a "committed intimate relationship" under Washington common law — sometimes referred to as a "marriage-like relationship."

Typically, "a committed intimate relationship exists when a couple intentionally cohabits in a stable, marital-like relationship, but without a lawful marriage," according to Washington courts (PDF). Factors contributing to that assessment include:

• Continuous cohabitation.
• Relationship duration.
• Relationship purposes.
• Pooling of resources and services for joint projects.
• Intent of the parties.

If the Washington judge finds that you had a committed intimate relationship, property acquired during the relationship may be split in a manner as if you were married. The intent is to reach an equitable distribution of the disputed property.

However, if the court doesn't find that a committed intimate relationship exists in Washington, and you're not married or in a registered domestic partnership, it's more likely that the name on the title and contracts determine property ownership. 

If you're not in a registered domestic partnership or you maintained separate finances during your relationship, you may have a more difficult time proving your property ownership, McKean said.

Get Your Intentions in Writing

There are many reasons to buy property in one person's name and not jointly, McKean noted. So, an unmarried couple's mutual intentions should be outlined in writing in a legally enforceable document.

Some options to consider include a cohabitation agreement, cohabitation property agreement or an agreement for the purchase of a house. Such an agreement can help ensure a breakup or death fairly splits the house. Consider having an attorney review your home purchase and agreement before you finalize it.

"The ultimate question the document should answer is 'What are our intentions?'" McKean said. "If your intentions as a couple are unclear on deed or title, then have a clear written agreement to ensure you are both protected."

This document particularly protects the person:

• Whose name isn't on the title.
• Who provides more value in the initial purchase (such as a down payment).
• Who may provide more value in the future (such as with a renovation).

McKean suggested speaking with an attorney specializing in family law, real estate law, probate law or estate planning — ideally, someone who has previously worked with unmarried couples and property. Working with an attorney who understands multiple areas of law provides significant benefits in safeguarding your interest.

Agreement for a Home Purchase: What to Include

Any agreement should outline how you, as an unmarried couple, plan to structure the purchase, ownership, ongoing costs and any eventual sale. Here are some questions your agreement might answer:

Careful consideration of the above questions is particularly important if you want to create something other than 50-50 arrangements.

For example, if you have a verbal agreement that one partner will pay the down payment and the other partner will pay for the kitchen remodel over the next year, make sure you get the agreement in writing to ensure it is legally enforceable.

3 Essential Components of Home Ownership for Unmarried Couples

As you and your partner discuss joint ownership of your future home, consider how you want to structure and manage three key components: Mortgage, title and taxes.

1. Mortgage: Co-Signers Are Both Responsible for Loan Payments

Even if you break up, you're both still responsible for the mortgage payments if you're both on the mortgage.

Taking one person off the mortgage will require the other partner to refinance and qualify for a new mortgage. If home prices deflate, you may be unable to sell the house for a profit or break even.

If one partner dies, the surviving partner may be able to assume the mortgage without refinancing, depending on the mortgage terms.

2. Title: Options To Protect Both Owners

The title type defines ownership rights for a home. Title options depend upon the state and your marital status. The property title has legal ramifications, so you want to be sure it aligns with the mutual intended goals of you and your partner.

In Washington, an unmarried couple that is not in a registered domestic partnership may own property together as: 

• Tenancy in common: Allows two or more people to hold "fractional interests," which means that each person owns part of the property that may be unequal. Each owner may mortgage, sell, lease or transfer their share of the property with no effect on the interest of the other co-tenants, typically. This is the most basic form of co-ownership.
• Joint tenants: A form of ownership that has a right of survivorship. This co-ownership type allows an unmarried couple to own property together and, if one owner dies, ownership transfers to the surviving partner without the property going through probate. Because of the automatic transfer on death, this type of co-ownership has specific rules that apply to the creation of a joint tenancy.

Consult with a professional to determine the right co-ownership arrangement for you.

"The default principles of law will prioritize the name on the title, and it's really hard to overcome that presumption," McKean said. "The burden of proof is on the party whose name is not on title."

If you want to claim ownership but you're not on the title, you will likely need to go through civil court.

3. Taxes: Unmarried Couples File Separately

Finally, you can't file taxes jointly and take deductions based on married filing jointly status unless you are legally married. Speak with a tax advisor for advice on splitting typical house-related tax deductions such as a home office or mortgage interest payments.

Takeaway: Get Your Agreement in Writing and Structure the Title To Protect Both of You

Unmarried couples buying a house are like married couples in some ways but unlike married couples in others. Getting your intentions and agreement in writing is essential before buying property.

While splitting a mortgage payment may save on housing expenses today, a breakup or death could come with significant costs. Meet with experts to ensure you and your partner are both well-informed as an unmarried couple going into a big financial commitment like a home purchase.

Before you start looking, meet with an attorney who specializes in real estate or estate planning to discuss buying a house with an unregistered partner and decide how to buy a home in a way that is best for your relationship.

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