Unmarried couple finances

[Dirtybadger]

Hi MN,

DP and I are hoping to buy a house next year. Mortgage will be based on his salary. Mortgage will be in both of our names and we're each contributing equal amount to the deposit and to monthly payments.
Our finances are independent of one another, so the only shared assets we will have is the house and everything in it.

If we were to ever separate, would each of us be legally entitled to 50% of the house?

We don't and won't have children and we also won't be getting married. My concern is that as we aren't married one of us stands to 'lose out' if the worst were to happen in the future.

Thanks :)

So long as the Transfer Deed states that you are buying it in equal shares then yes, if you split, you each get half. If circumstances changed and there was a dispute then potentially there would be an uneven split, but as you're not planning on having children a dispute would be less likely.

Yes, just make sure that you own the house as tenants in common rather than joint tenants. This will share the equity in line with your contributions.

Yep, Cantthinkofagoodone just thoughtofagoodone

Thanks very much. :)

But if they buy as tenants in common doesn't that mean that in the event of one of them dying that person's half of the house would form part of their estate so the survivor could potentially lose it?

If this is right you would both need to make absolutely sure you have Wills in place

notactually yes, that's correct. If the OP doesn't marry, on her death her share of the house will either pass under her estate to her partner IF SHE MAKES A WILL but if she doesn't, then under the intestacy rules her share would go to her next of kin.

If you buy together as joint tenants, and one of you dies, the house would automatically pass to the survivor. If you split up, and sold the house, you would be entitled to half the proceeds each, presuming that neither of you claimed that he/she was somehow entitled to more than the other one - as mumblechum says.

If you owned as tenants in common, you can state on the deeds that you own 50% each, but you must make wills to ensure that your shares pass to the survivor on death, if that is what you want.