Top Ten Reasons for Unmarried Partners to Own Property as Joint Tenants

10. IT’S SIMPLE! Joint tenancy is easy to attain. Simply include a clause referring to that form of ownership in the title to the property and it’s done!

9. SHOWS DEDICATION. Owning a home as joint tenants can demonstrate the long-term commitment in your relationship.

8. FINANCIAL SECURITY. As joint tenants, both partners can tap into the equity in the home in case you need money for other purposes in the future. Being a homeowner makes more long-term financial sense than paying rent together year after year. Home ownership is an investment that can offer financial security for both partners and even partially fund your retirement.

7. TAX BENEFITS. Home ownership can provide significant tax benefits to the couple. When a couple is not married, these benefits can be more complicated as only an unmarried couple cannot file a joint return. Each partner has a few options. They could divide those tax benefits or if it makes more economic sense for one party to claim the deductions, the other should be compensated in some other way, such as by being responsible for fewer household expenses. For additional information, please contact a Bradshaw & Associates attorney.

6. PREVENTS GIFT TAXES. If only one member of an unmarried couple owns the home and he or she lets the other party live there rent-free, the IRS may consider that arrangement a gift to the nonpaying partner. When a gift is over $10,000 a year, or the equivalent of about $833 rent per month, the giver-or the homeowner-will have to pay gift taxes. This tax complication can be avoided, however, if the homeowner charges the other partner rent and keeps accurate books and records reflecting the payments. Contact Bradshaw & Associates with any questions or concerns, or for more specific legal advice.

5. SHARED ASSET. Purchasing your house as joint tenants means that you equally share ownership of your home, which is perhaps the greatest asset you will own in your lifetime. Equal ownership of assets can create a balance of power in the relationship.

4. SHARED DEBT. Most joint tenants are likely also joint debtors. If both partners are named on the mortgage note, both equally share financial responsibility.

3. PROOF OF OWNERSHIP. If the relationship does not last, each party has sound legal proof of his or her claim to an equal share of the premises.

2. PREVENTS FINANCIAL HARDSHIP. Neither party can simply walk away and leave the other solely responsible for the mortgage as they are joint debtors and share that financial obligation equally.

1. RIGHT OF SURVIVORSHIP. When one joint tenant dies, title to the property automatically passes to the other, without the need to go through the formal probate process. However, if only one member of an unmarried couple holds title to the property and does not have a will granting the property to the other party, it would pass to the deceased's legal heirs (usually family members) despite any contrary intentions on the part of the couple. Joint tenants, or those interested in entering into a joint tenancy should contact Bradshaw & Associates, P.C. for more information.