Unmarried Couples Buying A House What Do They Need To Know

Unmarried Couples Buying A House What Do They Need To Know

It has been said that falling in love consists of uncorking the imagination and bottling the common sense, and for many couples, buying a house together is an experience driven by excitement and emotion, especially in a market as hot as ours.

When a married couple in Texas buys a house, community property laws offer each person equal rights, responsibilities, and protections for their investment. But with more than 12 million unmarried partners living together in the U.S., and almost 13 percent of those being same-sex couples unable to get married in some states, it makes sense that the number of unmarried couples buying a house together is increasing.

For the unprepared couple, buying a house may mean buying trouble, too, as they fail to plan for the possibility of the relationship failing.

The home buying process is such an exciting and usually happy one, particularly for the first-time homebuyers, that people don’t like to drag in the three Ds of real estate: death, disaster, or divorce.  However, I always advise clients that financial planning and estate planning is the best way to protect themselves and their investments from future unknowns.

Image title

According to research in the Annual Review of Sociology, 55 percent of different-sex cohabiters marry within five years of moving in together, but another 40 percent break up. So what happens to those 40 percent if they’ve bought a house together? 

“Basically, what the law says is that you are joint tenants,” said Dallas family law and divorce attorney Lisa McKnight. “If you buy something before you’re married, it’s like a partnership, and each partner has the unequivocal right to partition, which means to sell if they want to.”

McKnight said a common scenario is for a house to be financed in both partner’s names and one person wants to keep it after a breakup, but can’t qualify on their own to refinance the mortgage. The other partner can then force a sale.

“There’s always a fight about reimbursements—one person inevitably says they’re owed more from the sale of the house because they paid more for this, that, or the other,” she said. “Everybody shows up with [their paperwork], and it’s kind of like a battle of the receipts.”

The nature of a breakup makes the scenario especially unpleasant in many cases, McKnight said.

“There are people who can treat it like a business decision, but usually somebody’s heart is involved and it becomes more like a divorce,” she said. “People are using their emotions, not logic, and they want their pound of flesh. It’s about all the unresolved issues that one person has. When you mix that in a business transaction, there are going be problems.”

So what’s a solution? A partnership agreement, sometimes called a “real estate prenup.”

“Come up with a partnership agreement about the property that says how you’re going to deal with it [in the event of a breakup],” McKnight said. “If we want to end the partnership, how does the sale of the house take place? What kind of things are we going to reimburse? How do we decide on a sales price? The person who’s still in the house often doesn’t want to sell, goes passive aggressive about it, and won’t agree to a fair sales price—sometimes you have to get a stick of dynamite to get that person out.”

A partnership agreement should make things clear about what’s reimbursable and what’s not.

“Like say one person paid the utilities and the other person paid the mortgage—you want to get that clarified so the person paying the mortgage doesn’t look for reimbursement,” she said. “In the end, when people start hating each other, they start making lists of reimbursements, like ‘I paid to put the new deck in and you owe me for that.’”

A partnership agreement allows for other possibilities as well, like forming a limited liability partnership (LLP) together before buying a house.

The bottom line is this: create good communication and clear expectations about who pays for what, and what happens if one of the three Ds of real estate happens, McKnight says: “Get your understanding in writing—an oral agreement is not good enough for real property—agreements regarding real estate must be in writing.”


Deborah Boyd Headshot
Phone: 940-368-1306
Dated: March 12th 2015
Views: 1,614
About Deborah: My family has lived in North Texas for generations so I personally know the residential areas of Fri...

Property Search

RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

Office Building For Lease In Anna - With excellent visibility on
Planning Your Move - You have Purchased your new home
Immaculate Prosper Home - Located in Prosper, TX, 810
Sellers Your Home Is An Oasis In An Inventory Desert - Sellers: Your Home is an Oasis

Our Bloggers

The Doyle Team * - 2
Comprar Casa DFW * - 3
Nikki Acker - 2
Gabrielle Armstrong - 5
Cara Balderas - 52
Tami Bennett - 45
Justin Blackburn - 1
Jessica Boozer - 18
Rhonda Borgne - 1
Olivia Borowski - 1
Jennifer Boyd - 2
Deborah Boyd - 390
Jamie Brannagan - 1
Kathryn Brick - 1
Annette Bruen - 48
Moira Brunken - 18
Beverly Bryant - 24
Ana Cantu - 1
Lisa Cardillo - 53
Bob Cardillo - 4
Lucina Cervantes - 11
Gregory Cornett - 2
Angela Cotten - 85
Missie Craig - 12
Greg Cunningham - 2
David Darty - 1
Sarah Dieter - 9
Belinda Duff - 5
Eva Duffy - 5
Leah Ecob - 15
Kristine Edens - 3
Jill Elliott - 99
Laneal Ernest - 9
Nicole Espinosa - 27
Christopher Evans - 1
Heather Feragotti - 8
Mark Fischer - 2
Susan Florsch - 12
Jennifer Flynn - 9
Leslie Fogle - 101
Larry Frassinelli - 6
Chad Gabriel - 58
Shalee Garza - 10
Marcos Garza - 1
Tammy Gill - 1
Timothy Gilliam - 2
Christina Gonzalez - 5
Wilma Goodwin - 2
William Graves - 5
Jimmy Hanks - 1
Kristen Henderson - 1
Candie Hernandez - 1
Beth Herr - 1
Hunter Howard - 1
Sandra Hunt - 92
Bill Hurd - 3
Gary Hutchings - 20
Rachel Jama - 47
Trenton Johnson - 15
Marla Johnson - 1
Felicia Johnson - 79
Dakota Joyner - 9
Sunil Kanjia - 6
Jemi Khan - 26
Leigh Klotz - 5
Amber L Johnson - 9
Michele Lafortune - 22
Wanda Lewis - 2
Stacy Lynn Massar - 27
Chuck May - 1
Jennifer Menting - 17
Mikki Migis - 8
Richard Mikus - 1
Sean Moniri - 21
Naddia Morales - 10
Candace Mozingo - 1
Mark Mulch - 19
Erick Murphy - 6
Steve Murray - 1
Julie Nicholson - 10
Nikki Okpuzor - 3
Alan Oliver - 7
Kelly Oltmann - 4
Kaysone Orlando - 1
Holli Paddio - 3
JP Piccinini - 50
Julie Ann Pickering - 85
Ann-Marie Pope - 2
John Priestash - 30
Joshua Putman - 111
Mimi Rader - 1
Shelia Randolph - 33
Teneka Ray - 1
Go 2 Girls Realty - 173
Bethany Rowan - 15
Kristi Roy - 1
Kelly Rumney - 9
Amy Jo Saenz - 3
Linda Scardis - 4
Sandy Setliff - 220
Christine Shannon - 30
Rene Sinclair - 27
Shelby Smith - 3
Bryce Smith - 5
Monica Solkhon - 1
Rodrigo Sotomayor - 16
Jenna Stanley - 9
Tim Stoll - 33
Kelley Stubbs - 3
Melodie Sulgrove - 1
Seana Taylor - 217
Mary Taylor - 14
Kevin Taylor - 15
Julian Taylor - 17
Erica Taylor - 54
Angela Taylor - 1
Karla Terrell - 2
Joey Thomas - 2
Michele Thompson - 6
Jason Todd - 24
Andrea Trimble - 55
Sarah Uber - 3
Yael VanGruber - 1
Diane Velez - 17
Debbie Viverito - 132
Rachel Walsh - 2
Nick Walton - 75
Spring Weeks - 9
Clint White - 2
Michael Worley - 164
Martina Worley - 2
Keisha York - 30
Audra Young - 1
Debbie Zurita - 17

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

JP And Associates REALTORS
6136 Frisco Sq Blvd, #200
Frisco, TX

Other Locations