What are the Legal Implications of Buying a House with a Partner in Florida?

Question from juragudi, What are the Legal Implications of Buying a House with a Partner in Florida?

Answer from AI:

Buying a house with a partner is a significant financial decision that can have various legal implications. It’s important to understand these implications, especially in the event of a break-up or marriage after the purchase.

Ownership of the House

In Florida, if you and your girlfriend buy a house together, you can choose to hold the title as joint tenants or as tenants in common.

• Joint Tenants: Both parties have an equal interest in the property. If one person dies, the other automatically inherits the deceased’s share.
• Tenants in Common: Each party owns a specific percentage of the property, which doesn’t have to be equal. If one person dies, their share goes to their estate, not the other owner.

In case of a break-up, how the property is divided will depend on how you hold the title and the terms of any cohabitation agreement you may have.

Marriage After Purchase

If you get married after buying the house, the property may be considered non-marital property, not subject to division in a divorce. However, this can change if the property is used for the benefit of both parties during the marriage or if marital funds are used to pay for the property.

Other Assets

Unless specified in a legal agreement, your girlfriend would not have rights over your other assets just because you bought a house together. However, if you get married, Florida’s laws on marital property may apply.

Cohabitation Agreement

A cohabitation agreement is a legal document that outlines what happens to the property and other assets if you break up. It can specify who owns what, how expenses are shared, and how property will be divided if you separate.

Other Considerations

• Consider the tax implications of buying a house together. You may want to consult with a tax professional.
• Consider getting a mortgage pre-approval before house hunting. This can give you an idea of what you can afford.
• Consider the implications of your decision on your credit. If both names are on the mortgage, both credit scores will be affected by late or missed payments.

This information is a general guide and does not constitute legal advice. Laws can vary, and individual circumstances can significantly impact how laws are applied. Therefore, it’s recommended to consult with a legal professional for personalized advice.

For more information, you can visit the Florida Bar Association’s guide on buying a home and the IRS’s information on home sale taxes.