In today’s housing market, more unmarried couples are buying homes together than ever before. Rising home prices, changing social norms, and a desire to “test the waters” before marriage have led many couples in Tennessee to take this major financial step as partners rather than spouses.
It might feel like a practical and exciting decision and for many, it is. But few couples stop to consider what happens if things don’t go as planned. When unmarried couples buy property together, they’re essentially entering into a business partnership, even if it doesn’t feel that way. The legal and financial consequences can be far more complicated than most people realize.
Below is what every unmarried couple should know before signing on the dotted line, including how Tennessee law handles these situations, the everyday challenges people overlook, what can go wrong, and how to protect yourself with the right agreement.
Real Estate and Relationships: Why the Law Treats Unmarried Couples Differently
In Tennessee, when a married couple buys a home, the property is typically held as “tenancy by the entirety.” This special form of ownership is available only to spouses. It provides built-in protections, such as the right of survivorship (if one spouse passes away, the other automatically inherits the property) and certain creditor protections.
Unmarried couples, however, do not have access to tenancy by the entirety. Instead, they typically hold property as either:
- Joint tenants with right of survivorship
- Tenants in common
The distinction matters.
If you’re joint tenants with right of survivorship, you both own equal shares of the property, and when one of you dies, the other automatically becomes the sole owner.
If you’re tenants in common, each person owns a specific percentage of the property, and that share passes to their estate, not automatically to the other person.
Neither arrangement, however, offers any legal protection if the relationship ends and one partner wants to sell, move out, or recover money they contributed. Those disputes are resolved not in family court, but in civil court, under property and contract law.
The Overlooked Day-to-Day Challenges of Co-Owning Property
Many couples plan for the down payment and mortgage, but few stop to think about the everyday decisions and financial responsibilities that come with owning property together.
It’s easy to assume everything will go smoothly when the relationship is good, but homeownership involves constant decision-making and unexpected costs. Without a clear agreement, even small issues can cause major disagreements.
Here are some of the day-to-day situations couples often overlook:
- Who decides on repairs or upgrades? What if one partner wants to replace the roof or remodel the kitchen, but the other thinks it can wait?
- Who covers unexpected costs? Property taxes, HOA fees, and home insurance rates can increase. If there’s a shortage in escrow, who pays the difference?
- How are maintenance and upkeep handled? Lawn care, pest control, or appliance replacement may seem minor until the bills start adding up.
- What happens when financial situations change? If one partner loses a job or can’t afford their share, is the other legally obligated to cover it?
- What about selling or refinancing? If one partner wants to sell or refinance but the other doesn’t agree, how is that handled?
These day-to-day realities can quickly strain a relationship and lead to serious financial disputes. Without a written plan in place, those disagreements can end up in civil court, just like any other property or contract dispute.
A Real Tennessee Case: When Co-Ownership Goes Wrong
Consider a real example: A couple purchased a home together while dating. Both contributed to the down payment, and both signed the deed. After a few years, the relationship deteriorated. One partner moved out, and the other continued to live in the house.
They disagreed on everything:
- Whether the home should be sold
- How much money each had really contributed
- Who should pay the remaining mortgage
- How improvements and repairs should be valued
Because they weren’t married, the case never went to family court. Instead, they had to file a partition action in civil court.
A partition action asks the court to divide the property or order the home sold and split the money. If co-owners can’t agree on how to divide the property or whether to sell it, the court steps in and makes those decisions. The judge may consider the size of the property, each owner’s investment, and any written agreements. And if the court decides the property can’t be divided fairly, it may order the home sold through a public auction. This is one of the biggest hidden risks: public courthouse auctions often draw limited bidders and may result in the property selling for far below true market value. That means both partners walk away with significantly less money than they would have received from a traditional sale on the open market.
It is important to understand that this auction scenario is extremely common in Tennessee partition suits. Many co-owners are surprised to learn that a judge can order such a sale, and even more surprised when the property sells for a fraction of what it’s worth.
What the couple didn’t realize was that:
- The judge had no authority to consider the emotional circumstances
- Decisions were made strictly based on property law and contract obligations
- The process was lengthy, stressful, and expensive
- The court didn’t divide things 50/50, it divided things based on documentation and contributions.
If the couple had signed a co-ownership agreement upfront, they could have avoided years of conflict and thousands in legal fees.
Why These Cases Are Civil, Not Family Court Matters
Many people are surprised to learn that unmarried couples don’t have access to family court when it comes to dividing property. Family court in Tennessee deals with divorce, child custody, and support issues, all of which apply only to legally recognized families.
If you and your partner are not married, you are treated as two individuals who happen to co-own an asset. When you split, the court won’t consider emotional ties, relationship length, or who acted as “head of household.”
Instead, your dispute is handled in civil court, under the same laws that apply to business partners or co-investors. This can make the process more formal, more expensive, and less forgiving.
That’s why it’s so important to have clear documentation outlining who owns what and what happens if one person wants out.
The Smart Solution: A Co-Ownership Agreement
Before signing a deed or mortgage together, an unmarried couple should strongly consider a co-ownership agreement (sometimes called a property ownership or home-sharing agreement).
This is a legally binding contract that lays out each partner’s rights and responsibilities. Think of it as a “road map” for how the property will be managed, used, and divided if the relationship or living arrangement ends.
Here’s what a good co-ownership agreement should cover:
- Ownership Shares and Contributions
Specify who owns what percentage of the property. If one partner contributes more to the down payment, closing costs, or improvements, the agreement should reflect that with ownership percentages or reimbursement terms. - Mortgage and Expense Responsibilities
Clearly outline who will make mortgage payments, property taxes, insurance, and maintenance costs. It should also state what happens if one person stops paying their share. - Day-to-Day Decision Making
Address how decisions about repairs, improvements, or upgrades will be made. For example, the agreement can require mutual consent for expenses over a certain dollar amount. - Sale or Buyout Terms
Define the process for selling the property or buying out one partner’s interest. Include how the property will be valued (for example, through an independent appraisal) and timelines for completing the transaction. - Dispute Resolution
Include a method for resolving disagreements, such as mediation or arbitration, before going to court. This can save significant time and money if conflicts arise. - Death or Disability
Address what happens if one partner dies or becomes incapacitated. Without a clear plan, your share could pass to your partner’s next of kin rather than to you.
A co-ownership agreement doesn’t take the romance out of the relationship, it simply adds clarity and protection. Think of it as similar to a prenuptial agreement, but for property rather than marriage.
What Happens If You Don’t Have an Agreement
Without a written agreement, disputes over jointly owned property can become messy and expensive. The options are typically limited to:
- Selling the property and dividing proceeds (as the court often orders)
- Filing a partition action, which is a lawsuit to force a sale or division of the property.
Both routes can take months, cost thousands in legal fees, and create lasting financial damage.
And because these cases are handled in civil court, judges will focus narrowly on title documents, bank records, and ownership percentages, not on who was “more committed” or “more wronged.”
Final Thoughts: Protect Your Heart and Your Investment
Buying a home with a romantic partner is a big step, one that can bring stability, joy, and financial growth. But without the legal protections that marriage provides in Tennessee, it also carries risks that many couples never consider until it’s too late.
A clear, well-drafted co-ownership agreement doesn’t take away from the excitement of buying a home together. Instead, it protects both partners, preserves the relationship, and avoids costly disputes down the road.
If you’re thinking about buying a home with your partner, or if you already co-own property, meeting with an experienced real estate and contract attorney can help protect your investment and make sure both partners are on the same page. At Ralls & Wooten Law Firm, we offer practical, local guidance based on Tennessee law and the everyday issues that come with co-owning property. Contact us today for a free consultation!