Unmarried couples in Texas who are contemplating getting a home together should understand exactly what such a purchase will entail. They should also be aware of the complications that might arise if the relationship ends.
According to a 2011 report from the Pew Research Center, cohabitating couples do not combine their finances together as often as married couples. However, a large number will pool together their finances for large expenses and to make big purchases.
Unmarried couples who decide to live and sign a mortgage together should view the process as a business transaction. It may be prudent for the unmarried couple to complete a cohabitation agreement, which should detail how much of the mortgage, insurance and property maintenance and upkeep each party will be responsible for. There should also be extra provisions for what will occur if the relationship ends and one party relocates.
Typically, state laws concerning property offer more protection for married spouses than unmarried couples. However, depending on the state, there are avenues unmarried couples can take to make sure that both parties are protected. One party can purchase the property under his or her name while the other pays a reasonable rent to the buyer. If the relationship ends, a payment arrangement is still in place that can benefit both parties.
Unmarried couples who decide to purchase a home together should understand that without the proper legal documents, separating their finances can become a complicated issue if the relationship comes to an end. An attorney may create or review the appropriate legal documents that can protect the financial and property interests of both parties.