Co-Ownership of Property for Unmarried Couples in Wisconsin; How to Avoid Legal Disputes
Co-ownership of property, particularly a home, is more common than ever due to high prices and mortgage rates. As a result, unmarried individuals are choosing to buy properties jointly to help make home ownership affordable.
Since unmarried couples cannot rely on Marital Property Laws, a Property Co-Ownership Agreement is recommended to address the variables that come with home ownership. The purpose of the agreement is to prevent disputes and reduce legal fees in the future should the co-owners decide to part ways.
What can a Property Co-Ownership Agreement Cover?
A Property Co-Ownership Agreement is a legally binding document that can address the following:
- Ownership percentages of the property, including acknowledging any down payment.
- Financial agreements about the property such as who will pay the mortgage, taxes, utilities, HOA fees, and maintenance.
- If an owner fails to make payments or can no longer make payments.
- Determining the price of the property if one owner wants to buy out the other owner.
- Determining costs, gains, or losses if both parties wish to sell.
- Agreements regarding renting the property or other guest arrangements.
- Agreements on how homeowner disputes will be resolved.
- How to handle the passing of an owner. (Clear estate planning documents should support the plan as well.)
What happens if unmarried co-owners do not have a Property Co-Ownership Agreement?
If an unmarried party chooses to terminate joint ownership, and a Property Co-Ownership Agreement is not in place, the division of property can be handled via out-of-court agreements or litigation through the courts. Attorneys routinely assist with the negotiation and drafting of out-of-court agreements, including through processes like mediation, that can settle disputes between co-owners.
In court, however, a judge can order a partition or sale of the property if the parties cannot come to an agreement. Most individuals do not prefer a court to decide the outcome, as both parties could end up unhappy. In addition, the cost of legal fees can contribute to any financial burden, and it can take time to come to a resolution.
Murphy Desmond lawyers can help prevent property disputes among co-owners
At Murphy Desmond, our Wisconsin family lawyers regularly work with unmarried couples who wish to jointly own property. We create Property Co-Ownership Agreements that prevent legal problems and expenses in the future. In addition, we can assist with division of all property for unmarried couples. Our lawyers strive for fair, cordial, and satisfying outcomes in these situations.
Please contact our family law attorneys at email@murphydesmond.com or call us at 608.257.7181 to assist with Property Co-Ownership Agreements and all your family legal needs. We have family law attorneys in Madison, Dodgeville, and Janesville, Wisconsin.
Published January 29, 2025