Introduction

Buying a house together can be a significant and joyful decision for an unmarried couple. However, what happens if one partner passes away? This article explores the legal implications and varies based on location and circumstances.

Legal Considerations

The answer to what happens to a house co-bought by an unmarried couple in the event of one partner's death depends on multiple factors, primarily the laws of the jurisdiction where the property is located and where the couple resided.

Next of Kin and Will Inheritance

Without a will, in some states, the deceased's spouse is considered the next of kin and would likely inherit the property. However, if a will exists, the property will go to the person or entity named in the will. It is crucial to check the specific laws of the local jurisdiction for definitive answers.

Estate Ownership and Possibilities for Sale

Typically, in the absence of a will, the deceased's share of the home will pass to their estate, which can own a portion of it. Unless the property was given to someone else, such as the surviving partner, the estate might have the right to sell the home. Property and money belonging to the deceased should be distributed according to the will or trust, or if none, according to state laws.

Regional Variations

Sweden: Without a will, the deceased's share of the property generally goes to their relatives. It is possible that the surviving partner could sell it to a relative if capable.

Australia: After approximately two years of continuous living together, an unmarried couple may be considered a de facto marriage. In this case, the same estates laws as those for married couples apply. However, both parties should have a will to ensure clarity regarding the house's disposition.

Specific Legal Details in the United States

In the United States, the outcome depends on the method of titling and the terms of the will. If the property is listed as joint tenants, the deceased's share typically passes to the surviving joint tenant(s) automatically, without the need for probate. If the surviving partner or others make a claim, or if the home is only titled in the deceased's name, the situation can become more complex.

Joint Tenants with Right of Survivorship

For those listed as joint tenants with a "right of survivorship," the deceased's share of the property passes directly to the surviving owner, thereby avoiding probate. The mortgage must also be considered, as it may have individual signatories. If the mortgage is solely in the deceased's name, the surviving partner may face challenges in continuing the payments, depending on the terms of the mortgage contract.

Mortgage Considerations

If the mortgage is in the deceased's sole name, the mortgage company may require the loan to be paid in full. Mortgage insurance can be beneficial in such cases, as it can pay off the loan if necessary. If the insurance does not cover the full amount, the surviving partner might need to find alternative funding through refinancing or other means.

Conclusion

When an unmarried couple co-buys a home, it is essential to understand the implications of a partner's death early on. Consulting with a lawyer to create a clear and comprehensive will is highly recommended to prevent misunderstandings and legal disputes in the future. Whether through joint tenancies, wills, or other legal measures, proper planning can help ensure the co-owned property is handled appropriately according to the wishes of the deceased and the surviving partner.