Real Estate For Unmarried Couples: The What & Why of Co-ownership Agreements

Owning property is a common goal for many couples, as it can be both a strong financial asset and a significant part of your long-term plans and lifestyle. However, buying such a major asset comes with its share of risks—especially if the relationship ends unexpectedly.

STORY TIME:I recently heard from a past client who wanted to revisit her real estate plans and figure out the best strategy moving forward. I first worked with her when she hired me to sell the home she had fought to keep in her divorce. After the divorce was finalized, she stayed in the house for a few years, but now she was ready to move on and start fresh.

I helped her sell that home and purchase a new one. Since then, she’s built some equity in her new property and reached out to ask if she could use that equity as a down payment to buy a house with her new partner. She’s looking forward to her future with him, but this time, she’s decided not to marry. It’s an interesting scenario: The equity she has in her new home was made possible by the equity she fought so hard to secure in her divorce settlement. Now, she wants to use that same equity to buy a new home with a partner she isn’t married to. “That sounds like a great plan!” I responded. “But how important is it to you to protect that initial investment, especially since you’re using your hard-earned equity for a down payment?” Most people understand that dividing property during a divorce can be tricky and complicated, which is why things like prenups and thoughtful planning are so important. But did you know it’s just as essential to think about protecting your assets even if you’re not married? And there are legal tools available to help you do just that.

Unmarried couples should seriously consider protecting their real estate investments through co-ownership agreements. I fully support women moving forward and embracing new chapters in their lives, and I’m genuinely happy to see her find happiness in a new relationship. As her real estate advisor and friend, my goal is to ensure she’s fully informed about her options to safeguard her financial well-being. I don’t want her to face any of the same struggles from her previous divorce if they can be avoided.

The Case For Co-Ownership Agreements

The key takeaway here is that planning ahead is always the best approach. Being thoughtful and intentional before making major life decisions—like marriage, divorce, or real estate purchases—helps you protect yourself from future uncertainties.

A co-ownership agreement is a proactive way to safeguard your finances when buying property with a partner you’re not married to. Many people prefer to make big decisions and investments with a partner without tying the knot for various reasons—and the good news is, there are legal options to help protect your assets in these situations.

If you’re purchasing a home with a new partner, especially if you’re using equity from a previous home or your own income for monthly payments, it’s important to have a plan in place. What happens if your partner’s financial situation changes? Or if the mortgage is only in their name—do you still have rights to the property? What if the relationship ends—who keeps the house, or can you sell it, or buy them out?

A co-ownership agreement protects both your past financial assets and your future prospects. Without a legal agreement in place, you risk leaving yourself vulnerable if the relationship changes or comes to an end.

Essential Guide to Co-Ownership Agreements: What You Need to Know

Co-ownership agreements, though sometimes called different names, serve as a legal safeguard for unmarried couples entering into property ownership together. While they aren’t the same as prenuptial or postnuptial agreements, they function in a similar way by outlining clear terms in case the relationship changes. Unlike marriage agreements, co-ownerships fall under contract law, not family law.

Many people are unaware that co-ownership agreements are available to unmarried couples, but they are an essential tool for protecting both parties’ financial interests. These agreements should be more widely used as they cover important aspects of property ownership, such as:

• What happens if the relationship ends?
• How will initial investments be handled?
• What does a buy-out process look like?
• Who is responsible for mortgage payments and property upkeep?
• How are improvements, renovations, and utility costs managed?
• What happens if one party passes away?

Without a co-ownership agreement, breaking up or selling a shared property could lead to the same type of complications and conflicts as a divorce. To avoid this, having a clear agreement in place is crucial. Here’s what you need to know to protect your interests.

Interested in learning more about co-ownership for unmarried couples? Reply with the word ‘co-ownership’ and I will send you all the details!

Instant Reaction: Mortgage Rates, November 21st 2024

Facts: The average 30-year fixed mortgage rate from Freddie Mac remained relatively unchanged at 6.78%, down slightly from 6.79% last week. At 6.78%, with a 20% down payment, the monthly mortgage payment on a $400,000 home is $2,082. With a 10% down payment, the typical monthly payment would be $2,342.

Positive: Despite higher rates in recent weeks, mortgage applications saw an increase this week. With the election now decided, buyers are resuming their home search after a brief pause. Although the share of first-time buyers remains historically low, it’s worth noting that the late fall and winter months typically offer more favorable conditions for first-time buyers, as many families step back from the market during this time.

Negative: While the Federal Reserve has made two rate cuts, and more are anticipated in 2025, these cuts don’t directly impact mortgage rates. Mortgage rates are more closely tied to the 10-year Treasury yield, which has risen over the past week. Additionally, inflation is still higher than it was last year, despite a slight decrease from the previous month.

204 Gobble Gallop & Parades

As Thanksgiving draws near, Charlotte is brimming with excitement. Whether you’re eager to kick off the holiday season with a fun family tradition, burn off some pre-feast calories, or take in festive parades, the Queen City has something for everyone. Here’s a roundup of the best Thanksgiving events happening in Charlotte this year!

Charlotte Turkey Trott 2024

Thanksgiving Day, November 28th, 2024 – South Park Mall, 8AM

Charlotte’s cherished tradition, the Charlotte Turkey Trot, is back for its 36th year! This popular 8K race draws thousands of runners and walkers to the SouthPark area to start Thanksgiving Day on a healthy note. The event also features a 5K, a fun run for kids, and a virtual option for those who can’t join in person. Whether you’re aiming for a personal best or simply soaking in the festive atmosphere, this is a Thanksgiving event you won’t want to miss!

Lake Norman Turkey Trott 2024

Thanksgiving Day, November 28th, 2024 – Jetton Park, Cornelius 

A short drive from Charlotte, the Lake Norman Turkey Trot offers stunning lake views and a range of race options. Participants can choose from a half marathon, 10K, or 5K, all set on a scenic course that provides a peaceful alternative to the busy atmosphere of Uptown Charlotte. It’s the perfect choice for those looking to kick off their holiday with a more relaxed and serene experience.

Bright Lights 5K & 1-Mile Fun Run

Thanksgiving Eve, November 27, 2024 | 6:30 PM – 10:00 PM | Daniel Stowe Botanical Garden, Belmont

For a more peaceful turkey trot, head to Daniel Stowe Botanical Garden for their inaugural Bright Lights 5K and 1-Mile Fun Run. Taking place on Thanksgiving Eve instead of the holiday itself, this event lets you run through the Garden’s stunning light display, leaving you free to relax and enjoy Thanksgiving Day!

Novant Health Thanksgiving Eve Parade
Thanksgiving Eve, November 27, 2024 | 9:00 AM | Uptown Charlotte

As one of the largest and longest-running Thanksgiving Day parades in the Southeast, the Novant Health Thanksgiving Eve Parade is a must-see event. Kicking off at 9:00 AM, the parade showcases dazzling floats, lively marching bands, giant character balloons, and a special appearance by Santa Claus himself! Families gather along the streets of Uptown Charlotte to enjoy this festive celebration of holiday cheer. If you can’t make it in person, you can catch all the excitement live on television.

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Call Marcus 704-390-3134