Many committed couples decide to buy homes together. Acquiring a house is often a priority for newly-married couples. People who do not intend to marry may also decide to buy together. Doing so can be more cost-effective than renting, and the couple can acquire equity that can be a major source of personal wealth later.
Unfortunately, just as married couples divorce, unmarried couples who make a commitment to each other might eventually break up. When they do, they may find themselves in a very challenging scenario regarding the home that they have acquired together.
How can unmarried couples who jointly own real estate address their property when they end their relationship?
A partition action may be necessary
Sometimes, couples can negotiate an amicable solution for the home that they acquired together. One owner might offer the other a reasonable amount in a buyout situation. However, if both owners want to stay at the property or if they can’t agree about what the home is worth, then they may find themselves fighting about who stays or how much a buyout might cost.
In such scenarios, initiating a partition action could be a smart decision. A partition action is a real estate lawsuit that asks a judge to help the co-owners who share tenancy address their interest in the property.
In cases involving unimproved land, the judge could split the parcel into two separate properties. When there is a residence on the land, then the partition action might lead to a judge ordering the sale of the property or establishing standards for one owner to buy out the other.
Each owner can provide information about their financial and practical contributions toward homeownership. They may have provided funds for the down payment or may have done quite a bit of uncompensated work to improve the property. The judge determines what is reasonable and appropriate given the value of the property and the contributions each person has made toward the acquisition and maintenance of the home.
Real estate litigation can help to ensure that someone who bought property with a former partner doesn’t lose out on their investment when the relationship ends contentiously. Understanding the legal solutions available during a breakup that involves high-value assets can help people protect their financial future during a difficult time.
