It's important to recognize the special legal and financial considerations that gay and lesbian couples may encounter when purchasing real estate together. Whether the couple is legally married or just cohabiting, there are unique considerations that must be taken into account to
ensure that the process goes smoothly.
(View the video summary or read the entire blog below.)
For couples who are legally married, same-sex marriage has largely made the issue moot. Same-sex marriage has been legal throughout the United States since 2014, so married gay and lesbian couples are treated the same as heterosexual married couples in the eyes of the law. As a result, they can jointly own property and title it as they see fit, just like any other married couple.
However, for couples who are not legally married, there are still some unique considerations that need to be taken into account. One of the biggest considerations is how to title the property. When two unmarried people purchase property together, they have a few different options for how to title it. They can choose to hold the property as joint tenants, tenants in common, or as community property (if they live in a community-property state).
Joint tenancy is often the default for unmarried couples, but it's important to understand that it comes with some potential drawbacks. If one person dies, the other person automatically inherits their share of the property. This can be a good thing, but it can also lead to unintended consequences if the couple breaks up or if one person wants to leave
their share of the property to someone else. Tenancy in common, on the other hand, allows each person to control their own share of the property and leave it to whomever they choose. Community property, if applicable, is owned equally by both parties.
Another important consideration is inheritance. In the absence of a will or other legal documentation, the surviving partner may not automatically inherit the property if one person passes away. This can lead to complicated legal battles and may result in the property being sold to settle the deceased partner's estate. It's important for unmarried couples to have a clear understanding of how they want their property to be distributed in the event of one partner's death and to work with an attorney to create a legally binding document outlining their wishes.
Overall, the legalization of same-sex marriage has made things much simpler for gay and lesbian couples who want to purchase real estate together. However, for those who are not legally married, there are still important considerations to keep in mind. Working with an experienced realtor and an attorney can help ensure that the process goes as smoothly as possible and that both partners' interests are protected.
