Breakups are hard enough without the added stress of dividing real estate. Unlike married couples, unmarried partners don’t have the benefit of divorce laws to dictate property division. If you and your ex co-own a home, it’s essential to understand your legal rights and options. This guide will walk you through your choices when one partner wants to keep or sell a shared property.
Understanding Property Ownership for Unmarried Couples
Before deciding what to do with the property, determine how it’s legally owned. In California, there are two main ways unmarried couples hold property:
Joint Tenancy: Each partner owns an equal share of the property. If one partner passes away, their share automatically transfers to the surviving partner.
Tenancy in Common: Each partner owns a specific percentage of the property, which may not be equal. Shares can be sold or transferred independently.
Understanding your ownership type will help clarify your legal rights and responsibilities when dividing the property.
Real Estate Division for Unmarried Couples: Legal Options for Dividing Property After a Breakup
When unmarried couples separate, they generally have three options for real estate division after a breakup:
1. One Partner Buys Out the Other
If one person wants to keep the home, they can buy out the other’s share. This involves:
Determining the home’s current market value.
Agreeing on a buyout price based on each person’s ownership share.
Refinancing the mortgage (if applicable) to remove the departing partner’s financial liability.
2. Selling the Property and Splitting the Proceeds
If neither partner wants to keep the home, selling it may be the best option. Steps include:
Getting a professional appraisal to determine the home’s value.
Agreeing on how to divide the sale proceeds based on ownership shares and contributions.
Paying off any remaining mortgage or liens before distributing the proceeds.
3. Co-Owning the Property After the Breakup
Some exes choose to continue co-owning the home, especially if they share children or investment goals. This arrangement requires:
A clear co-ownership agreement outlining responsibilities, financial contributions, and a future exit strategy.
Ongoing communication and cooperation.
A plan for handling future disputes, such as mediation or legal arbitration.
Potential Legal Challenges and How to Handle Them
Disagreements Over Ownership Shares
If one partner contributed more financially (such as a larger down payment or mortgage payments), disputes may arise over ownership percentages. A written agreement or legal proof of contributions can help resolve these issues.
One Partner Refuses to Sell or Move Out
If one partner won’t cooperate, legal action may be necessary. A partition lawsuit allows a court to force the sale of jointly owned property. Consulting a real estate attorney can help navigate this process.
Mortgage Liability Issues
If both partners are on the mortgage, the lender will hold both accountable for payments, even after separation. Refinancing in one partner’s name is the best way to avoid future financial risks.
Get Legal Help for Property Division
Dividing real estate after a breakup can be complicated. Whether you’re negotiating a buyout, selling the home, or facing a legal dispute, seeking professional legal guidance can help protect your interests.
Key Takeaways:
Determine your legal ownership structure (joint tenancy or tenancy in common).
Decide whether to sell, buy out, or co-own the property post-breakup.
Address legal challenges like ownership disputes, unwilling sellers, or mortgage liability.
Seek legal help to ensure a fair and legally sound resolution.
If you need legal assistance with property division as an unmarried couple, contact Sara Naheedy Law APC for expert advice tailored to your situation.