I am buying a house because my credit is better than my girlfriend. How do we go about after the purchase if we share expenses and how do her rights get protected?
how do her rights get protected?
There are two choices:
- You get married. Statutes and case law have created structures for the settlement of property between divorcing spouses. There's no such thing for girl friends.
- Write a contract (which is -- in essence -- a prenuptial agreement) which specifies things like:
- how much each of you is contributing to the down payment, and therefore each of your initial ownership percentages.
- how the equity portion of each mortgage payment is split. (I'd go with percentages of the purchase price and then use those percentages when you buy her out after you break up.
- who pays for major repairs and how that impacts ownership percentages.
It's going to be a Big Fat Mess, and quite possibly end the relationship. (I read once that prenups are the #1 cause of weddings being cancelled, and I completely understand.) You two will learn a lot about each other when really thinking about the house.
But if you don't, then you'll be back here in a few years asking us how to split the house, and we'll close the question as Duplicate, and point to the dozen previous questions just like it (for houses and cars).
This is what happens when you don't have a contract:
Im trying to remove a name from a mortgage, the other party is requesting a payout of a large sum of money. They never paid a penny to the mortgage, upkeep. They never moved into the property. Im requesting they sign the paper work and put an end to it. Mediation is about to start, but im not sure if i can pull the pay me half of what i have paid already card, to stop it going to court?
Name is both mortgage and deeds. The other party is being abusive. Saying he is going to smash the house up because he owns the property.