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Cohabiting partners face unequal mortgage and equity risk
A financial planner says that in most states, an unmarried partner who pays a mortgage without being on the deed typically builds no claim to the home’s equity.
Yahoo Finance highlights how cohabitation before marriage, while increasingly common, can create financial uncertainty when one partner owns a home and carries a mortgage. The piece cites that in 2024, about 20.4 million Americans were living with an unmarried partner, and that roughly 80% of recent marriages between 2020 and 2022 were preceded by cohabitation. It uses an example of Emily and David, where Emily is on a mortgage of just over $2,100 per month and wants David to move in and split payments, while David currently pays about $1,200 a month in rent.
According to the article, legally speaking Emily’s home is hers alone in most states, meaning David would generally have no right to the property unless he is on the deed. That structure would leave David contributing to mortgage payments and the household’s equity without gaining an ownership stake, and he would not share in profits if Emily later sells the home for more than she paid.
At the same time, the article notes that David is generally not taking on risk tied to ownership, such as costs for repairs or potential liability for issues on the property, because those responsibilities remain with the person who owns the home. It compares the arrangement to a landlord-tenant setup, with David effectively paying toward housing without the protections or ownership benefits that typically come with being a co-owner or being on the deed.