In Brief (TL;DR)
For unmarried couples, buying a home with a mortgage requires careful consideration of legal protections to safeguard each partner’s rights.
We explore the available legal tools, such as cohabitation agreements, to ensure complete protection for both partners.
We analyze the available legal tools, like cohabitation agreements, to clearly define the rights and responsibilities of both partners.
The devil is in the details. 👇 Keep reading to discover the critical steps and practical tips to avoid mistakes.
More and more couples in Italy are choosing to build a future together without the bond of marriage. This social evolution, which blends Mediterranean tradition with a more modern view of relationships, brings new needs, especially when facing a major step like buying a home. Purchasing a property and taking out a mortgage are decisions that require clarity and specific legal protections for cohabiting partners. Italian law has made significant strides in recognizing and protecting domestic partnerships, but it is crucial for partners to know the tools available to them to best manage such a significant investment, ensuring security for both.
This article serves as a comprehensive guide for unmarried couples intending to purchase a home with a mortgage. We will analyze the legal framework, the different ownership options, the advantages and responsibilities of a joint mortgage, and, above all, the tools to protect oneself in any eventuality, from a breakup to inheritance. The goal is to provide clear and practical information to turn the dream of a home into a solid and secure project, founded on informed and shared choices.
What Are Domestic Partnerships: A Legal Framework
In Italy, the concept of a domestic partnership was formally recognized and regulated by Law No. 76/2016, known as the Cirinnà Law. This legislation defines de facto cohabitants as “two adults stably united by emotional bonds of a couple and mutual moral and material assistance,” not bound by marriage or civil union. To obtain legal recognition, the couple must register their cohabitation at the registry office of their municipality of residence, thereby obtaining a family status certificate. This formal step is crucial because it grants cohabitants a series of rights and duties previously reserved only for spouses, representing a bridge between tradition and new family configurations.
Buying a Home Together: Property Ownership Options
When an unmarried couple decides to buy a property, the first fundamental choice concerns the title of ownership. The most common and recommended solution to ensure equal rights is joint ownership (or ordinary co-ownership), where both partners sign the deed of sale and become owners of the property according to defined shares, usually 50% each. This option ensures that both have a say in any future decisions regarding the house, such as a sale or renovation. Alternatively, the property can be titled in only one partner’s name. However, this choice carries significant risks for the non-owning partner, who would have no legal claim to the house, despite possibly contributing to the mortgage payments. To avoid imbalances and future disputes, it is essential that the choice of ownership is well-considered and transparent.
The Joint Mortgage: Advantages and Responsibilities
Taking out a joint mortgage is the most common path for couples, both married and unmarried, to finance a home purchase. This solution offers a significant advantage: by combining the incomes of both partners, they provide greater security to the bank, increasing the chances of obtaining the loan and, sometimes, more favorable terms. However, joint titling implies joint and several liability: both signatories are responsible for the entire amount of the debt. This means that if one partner stops paying their share, the bank can pursue the other for the full payment. This is an important responsibility to fully understand before signing, as it inextricably links the partners until the debt is fully paid off, regardless of the evolution of their personal relationship.
Legal Protection: The Cohabitation Agreement
The most effective tool for unmarried couples to protect their financial interests is the cohabitation agreement. Introduced by the Cirinnà Law, this written agreement allows partners to customize the economic aspects of their life together. Drafted with the assistance of a notary or an attorney, the contract can define how to contribute to household expenses, the division of property acquired together, and, most importantly, what will happen to the property and the mortgage in the event of a breakup. For example, it can be established that the partner who invested more is entitled to a buyout or that one partner can take over the other’s share under pre-established conditions. This agreement is an act of great responsibility and foresight, an innovation that helps prevent conflicts and ensure fairness.
What Happens in Case of a Breakup
The end of a cohabitation is a sensitive time, especially when a jointly owned home and mortgage are involved. If the couple separates, the obligation to the bank does not cease: both partners remain legally bound to pay the mortgage installments. There are several solutions to manage this situation. The simplest is to sell the property: the proceeds are used to pay off the mortgage, and any surplus is divided between the two. Another option is a mortgage assumption, where one of the partners takes over the other’s share of the property and debt, becoming the sole owner (subject to the bank’s approval). In the absence of an agreement, the situation can become complex and may require a judge’s intervention. Having a cohabitation agreement that already provides for these eventualities greatly simplifies the process, turning a potential conflict into an orderly management of the separation.
Inheritance and Rights in the Event of Death
One of the most critical aspects for unmarried couples concerns inheritance. Unlike a spouse, the surviving partner is not a legal heir. This means that, in the absence of a will, the deceased partner’s share of the property would pass to their legal heirs (children, parents, siblings), not to the cohabiting partner. The Cirinnà Law offers minimal protection: it guarantees the survivor the right to continue living in the shared home for a period ranging from two to five years, depending on the duration of the cohabitation. However, this is a personal right of use, not a right of ownership. To provide the partner with real security, it is essential to draft a will, naming them as the heir to one’s share of the property. This tool, combined with a mortgage life insurance policy, is the only way to truly protect your partner’s future.
The European Context and Mediterranean Culture
Italy’s approach to domestic partnerships fits into a varied European context, where countries like France, with its Civil Solidarity Pacts (PACS), have legislated on the matter for some time. With the Cirinnà Law, Italy has sought to fill a regulatory gap, balancing the traditional family model, deeply rooted in Mediterranean culture, with the recognition of new forms of stable and loving unions. Statistics show a steady increase in de facto families and real estate purchases by single or unmarried couples, a sign of ongoing social change. The current legislation represents a compromise, a step forward towards greater inclusivity that reflects the evolution of society, while still maintaining some distinctions from the institution of marriage.
Conclusion
Tackling the purchase of a home and taking out a mortgage as an unmarried couple is a life project that combines dreams and responsibilities. Although the Italian legal landscape has made significant progress with Law No. 76/2016, full protection of both partners’ rights is not automatic. The key to a peaceful future lies in awareness and planning. Jointly titling the property and the mortgage is a fundamental first step, but it is through tools like a cohabitation agreement and a will that a couple can truly build a legal fortress around their investment and their bond. Getting informed, communicating openly, and relying on professionals like notaries and attorneys is not a cost, but an investment in your peace of mind. In a changing world, protecting your nest means giving a solid foundation not only to a building, but to the future you have chosen to build together.
Frequently Asked Questions
If an unmarried couple with a joint mortgage separates, both partners remain legally obligated to make payments to the bank, regardless of who continues to live in the property. The breakup does not cancel the debt. The most common solutions are: selling the property to pay off the mortgage, or one partner assuming the mortgage and becoming the sole owner (subject to the bank’s approval). If an agreement cannot be reached, there is a risk that one partner will stop paying, with serious consequences for both.
For unmarried couples, the main protection when buying a home is **joint ownership**, specifying each person’s share in the deed of sale. If no shares are specified, a 50/50 ownership is presumed. A fundamental tool is the **cohabitation agreement**, introduced by the Cirinnà Law, which allows you to regulate financial matters, including the management of the house in case of a breakup. Without these measures, legal protections are fewer than for married couples, especially concerning inheritance rights.
A cohabitation agreement is a written contract, drafted by a notary or an attorney, that allows unmarried couples to regulate the financial and property aspects of their life together. When buying a property, this contract becomes crucial for defining how to contribute to expenses, manage the home, and, most importantly, what will happen to the property in the event the relationship ends. It is a tool that prevents future conflicts, especially if one partner has contributed financially to the purchase without being on the property title.
The surviving partner’s rights depend on the property’s ownership and whether a will exists. If the house was owned by the deceased, the survivor has the right to live in it for a period of two to five years, depending on the length of the cohabitation. This right ceases if the survivor marries or enters into a new cohabitation. If the house was jointly owned, the survivor keeps their share, but the deceased’s share goes to their legal heirs (children, parents), not the partner, unless a **will** has been made in their favor. The law does not grant automatic inheritance rights to a cohabiting partner.
Putting both the house and the mortgage in both names is the choice that offers the most protection for both partners, as it establishes joint ownership of the property and shared responsibility for the debt. If the property is jointly owned, both can benefit from tax breaks. If, however, the house and mortgage are in only one partner’s name, the other, despite contributing financially, has no direct real rights to the property and is not legally protected in case of a breakup or death, unless a **cohabitation agreement** or a private written agreement is in place to regulate these aspects.
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