You and your significant other found the home of your dreams. Since it’s in Monterey County, it’s going to take both of your incomes to qualify for a mortgage and each of you will need to contribute some of your savings to the down payment.
You anticipate being together for a long time, if not forever, but you aren’t ready to get married yet. You’re not sure you ever will. So how do you protect your financial interest in the property? Having both of your names on the title is one important step you want to take if you want to ensure that you both have ownership of the home.
Even if only one of you is purchasing the home, if the other one is going to be putting money into repairs, upgrades, maintenance and property taxes, it’s crucial to have that codified so that if you break up – particularly if you do so without getting married.
Things to agree on and codify
Among the things to consider and potentially include in a legal agreement are the following:
- Whose name(s) will be on the title?
- Whose name(s) will be on the mortgage?
- Will a joint account be used to pay the mortgage and other costs associated with the home?
- Will both of you contribute to the down payment?
- How will proceeds or losses be divided when you sell the home?
Whether you’re ready to draw up a prenup, a cohabitation agreement or just want to put something in place for now that codifies your shared financial interests in your new home, it’s important to have experienced legal guidance.