Legal and Financial Issues to Consider When Co-Owning

One of the biggest financial decisions many people make is to purchase a home with a family member or significant other. From deciding to buy a home as an investment property to purchasing a home to live in as a couple, co-owning a home is a major step in life. Before taking the plunge, consider these important legal and financial issues.


The first step to co-owning a home is to understand how the property will be held. There are several options, including joint tenancy, tenancy in common, and joint tenancy with the right of survivorship. All three provide different legal entitlements to the owners, so it’s important to discuss these with a lawyer and determine what fits each co-owners needs.

In addition to the method of ownership, it’s important to protect each co-owners legal rights. One way to do this is to create a co-owners agreement, which outlines each co-owners financial obligations, what happens in the event of separations, and any other special considerations. Such an agreement can be incredibly useful for protecting each owner’s legal interests.


Financially, co-owning a home is a serious decision that involves a lot of money. Each co-owner needs to consider the monthly costs associated with the home as well as the long-term maintenance costs. That includes factoring in estimated costs for repairs and upgrades as needed. It’s also important to discuss the ownership structure when it comes to the mortgage, insurance, and taxes. It’s advisable to include this information in the co-owners agreement, as well. It’s best to determine who is responsible for what before actually making the purchase. In addition, it’s important to consider how to handle any disputes. Establishing a system for deciding how to resolve disagreements can help eliminate any potential issues while co-owning a home.

Co-owning a home is a major decision, and it’s important to consider all the legal and financial factors. Setting up the ownership structure, drawing up an agreement, discussing monthly costs and long-term maintenance, and establishing dispute resolution protocols are all essential for ensuring the success of a co-ownership arrangement. Taking these issues into consideration can make for a smooth transition for both co-owners.