Why Millennials Are Choosing Homeownership Over Marriage
Why Millennials Are Choosing Homeownership Over Marriage
Millennials are shifting away from traditional engagement rings and instead committing to each other by sharing a mortgage. Unlike previous generations, they don’t see marriage as a necessary step before buying a home together. With many burdened by student debt, millennials are delaying marriage and investing their savings into homeownership rather than weddings. This trend highlights how their priorities differ from those of their parents.
Step One: Have an Open and Transparent Conversation
Congratulations! You and your partner have decided to take the next big step in your relationship by purchasing a home together. Now, it’s time to have an honest discussion about your finances. This conversation should cover income, credit card debt, student loans, savings, and any other financial obligations to create a solid home-buying plan.
Addressing these topics early allows both of you to disclose any credit issues and get your finances in order before making such a significant purchase.
Step Two: Document a Legal Agreement
Buying a home as an unmarried couple isn’t as simple as signing a standard real estate contract. A home is the largest asset most people will ever own, so it’s essential to have a legal agreement in place to protect both parties if the relationship ends.
Often called a home-buying prenuptial, this agreement clarifies financial responsibilities and outlines what happens if the relationship dissolves. While no couple wants to plan for a breakup, a legal contract ensures both partners are protected while they’re still on good terms. Without one, a separation could lead to a costly and complicated legal battle.
Key Questions Your Agreement Should Address:
- Will you split the mortgage payment equally?
- Who covers utilities and major repairs?
- What happens if one partner becomes ill or passes away?
- How will the home be handled if you separate?
- If you sell, how will equity be divided?
- Will the home be refinanced?
Step Three: Choose the Right Title
When buying a home, the type of ownership title you select matters. Married couples typically use Tenants by the Entirety, but unmarried couples must choose between:
- Joint Tenants: Equal 50/50 ownership; if one owner dies, their share automatically transfers to the other.
- Tenants in Common: Allows for unequal ownership (e.g., 60/40).
- Sole Ownership: Only one partner holds the title.
Bonus Tip: Avoid Involving Parents
Many young couples seek home-buying advice from their parents, but this can add unnecessary complexity. Older generations often followed more traditional paths, so their perspectives may not align with modern decisions. While parents mean well, the only opinions that truly matter are yours and your partner’s. The key is to be smart—get everything in writing and protect your investment.
Millennials are redefining commitment by prioritizing homeownership over marriage. By having open financial discussions, securing legal agreements, and choosing the right ownership structure, unmarried couples can successfully navigate home-buying together.