Moving into one partner's home: what is the other one really paying for?
Put in the mortgage payment and how long you've been doing this. We'll tell you what part is living there and what part is the home itself. Here, Blue is the one moving in and Orange is the one who owns the home.
If you haven't put it in writing, it's as if Blue had gifted $15,000 to Orange. Nobody means any harm: almost nobody thinks about it when moving in.
- Interestthe cost of living there
- $400 a month
- Principalthe home itself, which belongs only to Orange
- $500 a month
- Mortgage payment
- $900 a month
puts in $450
a month: $200 for living there + $250 toward Orange's home
puts in $450
a month. The home and the mortgage are only Orange's.
Pays only the living part, like rent
- Pays per month
- $200
- Gifted after 5 years
- $0
Orange pays the rest ($700 a month) and the home stays only Orange's. It's the cleanest option: each of you knows what you're paying.
Pays half, with that share in writing
- Pays per month
- $450
- Principal on record after 5 years
- $15,000
A document signed by both of you stating what each contributes every month. That way the $15,000 of principal doesn't get lost: it's on record as what Blue put in. If you want it to hold up, a lawyer can make it airtight.
Pays the living part and saves the rest in their own name
- Pays toward the home
- $200
- Saves in their own name
- $250
- Saved after 5 years
- $15,000
It costs the same out of Blue's pocket ($450 a month), but $250 goes into an account of their own instead of into Orange's home.
The problem was never paying half. It was not knowing what you were paying for.
Ballpark figures. Not legal advice.
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