Buying a home with a boyfriend, girlfriend or business partner can be risky -- much more risky than buying a home with a spouse, anyway.  This is because, with respect to Estate Planning, married homeowners typically get federal and state level-protection from which non-married homeowners are typically exempt.

Non-Married Buyers Need To Make Protection

Non-married, joint homebuyers, therefore, should make their own federal and state protection with the help of an attorney.

At minimum, non-married joint homebuyers should consider two binding agreements in their partnership:

1. A cohabitation agreement
2. A property agreement

At minimum. And don't cut corners by using forms from the internet.  Hire an attorney to get it right.

Google Is Not Your Attorney. Hire Someone Good.

Now, a lot of joint buyers will instinctively hit Google for "cheap legal documents" or a DIY legal program. Don't be one of them.

Hiring an attorney will cost a few hundred dollars more than using Google but it's money well-spent.  And whatever the cost, it's far less than the cost of fighting a battle in court after-the-fact should there be a breakup.  And don't think it can't happen to you.

It happens all the time.

And potentially even worse is if one of the joint owners die and there's no estate plan in place.  The home could end up in probate.

It could also head to foreclosure if the mortgage payment that was manageable with two incomes is an impossibility with just one.   A basic life insurance policy can alleviate that risk.

Timeless Advice On Joint Ownership

The clip above was first shown on NBC's The Today Show in May 2007.  The message is still important today.  Love is blind, but it can also be blinding. Domestic and business partnerships don't always end in happily ever after and joint homebuyers need to be prepared for that.

Beyond the legal angle, you'll want professional advice on the mortgage-side, too. How you actually set-up your mortgage application can make a difference in the mortgage rate you're quoted.

For more information on non-married joint buyers, and I'll reply back to you right away.

Dan Green is an active loan officer. Email or call 513-443-2020. Dan is on Twitter at @mortgagereports.