Home Buying Tips for Unmarried Couples’ in Florida

Purchasing a home together is a significant milestone for any couple, but for unmarried couples in Florida, it comes with unique legal considerations and challenges. Home buying tips for unmarried couples are more complex than those for married couples. Married couples have established legal frameworks governing property ownership and rights, whereas unmarried couples must navigate a complex landscape of rights and responsibilities on their own. To ensure a smooth and fair process, it’s essential for unmarried couples to seek clear legal guidance and consider drafting a cohabitation agreement with the help of an experienced real estate attorney.

Understanding the Legal Landscape

In the State of Florida, unmarried couples do not have the same inherent rights as married couples when it comes to property ownership. Without proper legal documentation, disputes over property rights and ownership can arise, potentially leading to costly and contentious legal battles. Therefore, it’s highly recommended that unmarried couples consult with a knowledgeable real estate attorney to understand their rights and options based on their unique circumstances.

Drafting a Cohabitation Agreement

One effective way for unmarried couples to clarify their rights and responsibilities regarding homeownership is by drafting a cohabitation agreement. Similar to a prenuptial agreement for married couples, a cohabitation agreement outlines what would happen to the property in the event of a breakup or the death of one partner. This legally binding document may also specify each partner’s contribution to the down payment, mortgage payments, and upkeep of the property.

Types of Ownership

When drafting a cohabitation agreement, unmarried couples must also decide on the type of ownership structure that best suits their situation. The two primary ownership options available in Florida are joint tenancy and tenancy in common. In a joint tenancy, both partners share equal ownership of the property, with the right of survivorship ensuring that if one partner passes away, the other automatically inherits their share. On the other hand, a tenancy in common allows each partner to own a specific percentage of the property, which can be unequal if desired.

“When drafting a cohabitation agreement, unmarried couples must also decide on the type of ownership structure that best suits their situation.”

Financial Implications

While joint ownership of property between unmarried individuals offers certain benefits, such as shared responsibility and investment, it also comes with significant financial implications. Unmarried couples who jointly own property may face challenges such as tax implications due to filing separately, as well as difficulties obtaining a joint mortgage. It’s crucial for couples to carefully consider these factors and consult with a CPA to understand the full extent of the financial consequences of buying a property with an unmarried partner.

The Importance of Legal Counsel

The decision to buy a Florida property with a romantic partner is not the only situation in which unmarried partners would buy a property together. Two or more siblings or even unrelated people working as business partners may choose to buy a property and own it jointly. Because of the legal complexities and inevitable situation in which the partners will become separated (if not due to other reasons, then definitely through the eventuality of death) there is a need to create documentation that determines what happens next. It is advised that joint property owners do not attempt to “go it alone” in creating agreements that determine the answer to this question. Instead, it is advisable to seek the advice of an experienced Florida real estate attorney to ensure that the rights and responsibilities of each partner and their estate are understood and outlined clearly in an agreement.

South Florida Law

South Florida Law is a full-service law firm with offices in Broward (Hallandale) and Miami-Dade (Coral Gables). With South Florida Law you benefit from the attention to detail and access to partner-level advice that only comes from a boutique-sized firm. However, you also benefit from the firm’s considerable resources that are more akin to that of a larger law firm. If you are facing a legal matter related to joint ownership in a property then reach out to us today for a free consultation by calling (954) 900-8885 or via our website contact form.