Today it is becoming increasingly common for couples to live together for a great deal of time before they marry, and sometimes they live together without ever marrying at all. No doubt, a couple living together will acquire a great deal of joint property. It is important to consider how this property will be divided if the relationship ends. In the eyes of the law, the couple is still seen as separate individuals who have little to no rights if the relationship ends. Couples should be aware of certain issues regarding shared property to avoid future conflicts.
First of all, couples should decide how they will own the property before they purchase anything together. Before buying any large assets, such as a house, a couple should decide whether they own the property as joint tenants or tenants-in-common, in order to protect their rights in case one partner dies or the relationship ends.
If the couple chooses to own the property as joint tenants, then they will share the ownership equally. Joint tenants own equal interest in their jointly owned property. If one of the joint tenants dies, then under the right of survivorship the remained owner (or owners) automatically receive the deceased member’s share.
If the couple decides to own their property as tenants-in-common, then each member owns an individual share in the property. The couple decides themselves the percentage of each share. The couple could decide that one party owns 25 percent of the share, in which case that party would contribute 25 percent to the purchasing price. It is important to note that, in this type of tenancy, a co-owner does not automatically receive the other co-owner’s share if that party dies. If a co-owner dies, their share becomes part of their estate and it will be distributed as specified in their will.
It is also important for a couple to choose how they jointly own a property in case their relationship ends. If they won a large asset, such as a house, as joint tenants or as tenants-in-common, then the property could be divided equally in case of their separation. If they do not choose a way to own the property together, and instead put the property under only one name, then there could be conflict when deciding how to divide the property.
If the property is under one name then it will remain that party’s property when the relationship ends, unless the other party proves that there was a common intention that they would share the property. To prove a common intention when no such agreement was made in writing, there must be proof that both parties contributed when purchasing the property, maintenance, and mortgage payments.
Additionally, an unmarried couple will want to consider what happens to their property if one of them dies. Because they are unmarried, their partner will not receive any of their estate upon their death unless they explicitly name the other a beneficiary in their will. Generally, property automatically goes to the decedent’s parents or children.
