Legal Considerations for Buying a Home with Your Partner Before Marriage in Iowa

Purchasing a home together is a significant milestone for any couple, but when done before marriage, it presents unique legal and financial challenges. Unmarried couples in Iowa don’t have the same protections as married couples, making it essential to carefully structure ownership, establish clear agreements, and plan for different scenarios. Here’s what you need to consider.
 

Choosing the Right Ownership Structure

When buying a home together, how you hold the title determines your legal rights and what happens if one of you passes away or the relationship ends. In Iowa, there are two primary ways to own property jointly:
 

Tenancy in Common (TIC): Each person owns a percentage of the property, which can reflect different financial contributions. If one owner passes away, their share goes to their heirs, not automatically to the other co-owner.

Joint Tenancy with Right of Survivorship (JTWROS): Both partners own equal shares, and if one passes away, their share automatically transfers to the surviving owner.

 

Tenancy in Common offers flexibility for unequal contributions and estate planning, while Joint Tenancy ensures the surviving partner inherits the home. Choosing the right structure is critical, and consulting with a real estate attorney can help clarify the best option.
 

Why You Need a Cohabitation Agreement

Since Iowa law does not provide automatic protection for unmarried couples, a cohabitation agreement is highly recommended. This contract outlines:
 

How much each person contributes to the down payment, mortgage, and other expenses.

What happens to the property if you break up.

How equity and proceeds will be divided in a sale.

Who is responsible for mortgage payments and upkeep.

A process for resolving disputes.

 

A well-drafted agreement provides clarity and reduces potential legal battles if circumstances change.
 

Financing the Home Together

Unmarried couples have two main options for obtaining a mortgage:
 

Joint Mortgage: Both partners apply for the loan and are equally responsible for repayment. This can help qualify for a higher loan amount but means that if one person stops paying, the other must cover the full payment.

Single Borrower Mortgage: Only one partner applies for the loan, which can be beneficial if one person has a much stronger financial profile. However, the non-borrowing partner has no automatic ownership rights unless their name is on the deed.

 

Regardless of who is on the mortgage, ensure that both names appear on the deed if you intend to share ownership. Without this, one partner could be left without any legal claim to the home.
 

Handling Unequal Financial Contributions

It’s common for one partner to contribute more to the down payment or ongoing expenses. To prevent disputes, couples should:
 

Document contributions in writing.

Consider structuring ownership to reflect different investment levels.

Establish an agreement outlining how reimbursements or equity splits will be handled if the home is sold or the relationship ends.

 

Without a clear plan, the partner who contributed more could struggle to recover their fair share.
 

Risks of Buying a Home Before Marriage

While buying a home together can be a great investment, there are risks to consider:
 

Breakups and Property Disputes: If the relationship ends, dividing the home can be difficult, especially if no agreement is in place. Courts treat property ownership based on the title, so if one name is missing, that person has no automatic rights to the property.

Debt Liability: If both partners are on the mortgage and one stops contributing, the other is still fully responsible for payments. Late payments or foreclosure will impact both credit scores.

Inheritance Issues: If one partner dies without a will, their share of the home may go to their legal heirs rather than the surviving partner, unless the home is owned in Joint Tenancy.

 

To mitigate these risks, couples should draft a cohabitation agreement, maintain proper financial records, and consider estate planning to protect each other’s interests.
 

What Happens If You Marry Later?

If you marry after purchasing the home, it may become part of the marital estate, subject to Iowa’s equitable distribution laws in the event of divorce. Factors like how the title is held, contributions made during the marriage, and whether the home was treated as a shared asset will influence its division.
 

If one partner owned the home before marriage, it could be considered separate property, but using joint funds for mortgage payments or improvements might complicate the issue. Some couples choose to update their ownership structure or draft a postnuptial agreement to clarify intentions.
 

Seek Professional Guidance

Before making such a significant financial commitment, consult with:
 

A real estate attorney to ensure the title and agreements are structured correctly.

A financial advisor to help with budgeting and long-term financial planning.

An estate planning attorney to draft wills or trusts, ensuring the home is inherited as intended.

 

At Laird Law Firm, we help unmarried couples navigate the complexities of homeownership, ensuring that your legal and financial interests are protected. Whether you need a cohabitation agreement, assistance with property titling, or estate planning guidance, our experienced attorneys can provide the legal support you need. Contact us today to schedule a consultation.
 

Final Thoughts

Buying a home with your significant other before marriage is a major step that requires careful planning. By understanding ownership structures, drafting a cohabitation agreement, and addressing financial and legal considerations upfront, you can protect your investment and avoid potential pitfalls. Taking these steps ensures that whether your relationship thrives or changes, both partners are treated fairly and responsibly.