Buying a home together is an exciting milestone, but it is also one of the largest financial commitments most couples will make. And for unmarried couples, there is more to consider than finding the right property and applying for a mortgage.
Connecticut does not allow couples to establish a common-law marriage simply by living together. As a result, unmarried couples do not automatically receive the property rights generally associated with marriage. This makes it especially important to consider how you'll own the property, share expenses, and handle major life events that could affect the home.
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How Should Unmarried Couples Title a Home?
One of the first decisions you'll make when buying a home together is how to title the property. While it may seem like a technical detail, the ownership structure can affect each partner's rights in the home, what happens if one partner dies, and how sale proceeds are ultimately divided.
For unmarried couples, two common ownership structures are:
- Joint tenancy with right of survivorship: Both partners own the property together. If one partner dies, that person's interest generally passes directly to the surviving owner.
- Tenancy in common: Each partner owns a separate share of the property, which may be equal or unequal. Each owner may generally leave their share to a beneficiary through their estate plan.
Neither ownership structure is automatically better. The right choice depends on your financial situation, ownership preferences, and estate planning goals.
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What If One Partner Contributes More Toward the Home?
Not every couple contributes equally toward a home. One partner may provide most of the down payment, pay a larger share of the mortgage, or cover significant renovations and improvements.
In some cases, one partner may already own the home before the couple begins living together. If the property remains titled solely in that person's name, the other partner's financial contributions do not necessarily create an ownership interest. Without a shared understanding, each partner may view those contributions differently if the home is later sold or the relationship ends.
Unequal contributions can also raise questions when a home is purchased jointly. If one partner contributes more toward the down payment, will that person own a larger share of the home, be repaid the difference when the home is sold, or will the couple still divide everything equally?
Once both partners agree on how contributions will be handled, it may help to document those decisions in writing. Depending on the circumstances, this could involve a cohabitation agreement or another written arrangement. An attorney can help determine the appropriate option and prepare an agreement based on what both partners have decided.
Common topics to address include:
- Each partner's contribution to the down payment and ownership percentage
- How mortgage payments and household expenses will be divided
- Who will pay for repairs and renovations
- Whether either partner will be reimbursed for certain expenses
- How proceeds or losses will be divided if the home is sold
It is generally easier to address these questions before buying a home, moving into a home one partner already owns, or making significant financial contributions than to reconstruct what happened years later.
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What Happens to the Home If an Unmarried Couple Breaks Up?
No couple buys a home expecting the relationship to end. Still, deciding in advance what would happen to the home can make an already difficult situation easier to manage.
If an unmarried couple separates, what happens to the home may depend on the deed, mortgage, and any agreements they have in place. The deed shows who owns the home, while the loan documents show who is responsible for the debt.
Moving out does not automatically end that responsibility. Even if a partner gives up their ownership interest or is removed from the deed, they may still be responsible for the mortgage. Removing a borrower from the loan often requires refinancing or another arrangement approved by the lender.
Before buying a home together, consider whether one partner would have the option to remain in the home, how a buyout would be calculated, and how much time would be needed to arrange financing. It is also worth deciding what would happen if neither partner could afford the home alone and how selling costs, proceeds, or losses would be divided.
What Happens to the Home If One Partner Dies?
Buying a home together also requires a plan for what would happen if one partner dies.
For unmarried couples, the outcome often depends on how the property is titled and whether an estate plan is in place.
This can be especially important in Connecticut because an unmarried partner is generally not treated as a surviving spouse under the state's intestacy laws. If someone dies without a valid estate plan, assets passing through their estate may go to children, parents, siblings, or other relatives instead of the surviving partner.
Before purchasing a home together, it is worth considering whether the surviving partner should receive the entire home or whether either partner's share should pass to children or other beneficiaries. If part of the home passed to someone else, could the surviving partner afford to buy that person's share and remain in the home?
Even when ownership transfers as planned, financial challenges can remain. The surviving partner may still be responsible for mortgage payments, property taxes, insurance, maintenance, and repairs. For some couples, the bigger question is not who inherits the home, but whether they can afford to keep it.
What Tax Issues Should Unmarried Homeowners Consider?
Buying, owning, and eventually selling a home can raise tax questions for unmarried couples.
The ability to deduct mortgage interest or property taxes may depend on who owns the home, who is responsible for the mortgage, who makes the payments, and whether each partner itemizes deductions. As a result, the tax treatment may not always match how a couple informally divides household expenses.
If the home is sold, couples may need to determine how any gain is allocated, whether each owner qualifies for a home-sale tax exclusion, and how improvements affect the property's cost basis.
Keeping records of down payments, mortgage payments, and major improvements can make these issues easier to address. A qualified tax professional can help you understand how owning the home together may affect your taxes.
Financial Planning Before Buying a Home Together
Before buying a home together, unmarried couples should understand how the property will be titled, whose names will appear on the mortgage, how contributions will be handled, and what should happen if one partner moves out or dies.
If you and your partner are buying a home together and would like to discuss the financial questions involved, we’re here to help. You can schedule a complimentary introductory meeting with our team in Glastonbury or Wilton, Connecticut, to discuss the purchase and how it may affect your cash flow, savings, insurance needs, and other financial goals.
Have a quick question instead? Send us a note.
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Kelsey Conklin is a CERTIFIED FINANCIAL PLANNER® professional and Certified Divorce Financial Analyst® professional who helps individuals and families plan for their financial future. Based in Glastonbury and Wilton, CT, she also specializes in financial planning for women, guiding her clients through divorce, widowhood, career transitions, caregiving responsibilities, retirement planning, investing, and managing longevity risks. As a female financial advisor, Kelsey is passionate about financial empowerment for women and provides personalized financial strategies designed to help women take control of their wealth with clarity. Whether you’re navigating major life changes or planning for retirement, she is committed to providing guidance tailored to your goals. Schedule a complimentary Women and Wealth introductory meeting with Kelsey and start building a financial plan designed for you.
This information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete, it is not a statement of all available data necessary for making an investment decision and it does not constitute a recommendation. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Any opinions are those of the author, and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice.