In short: when two people buy a home together, the deed shows each person's ownership percentage, which should reflect what each one put in (down payment, closing costs, part of the payments), not automatically 50/50. The mortgage, on the other hand, is almost always joint and several: the lender can claim 100% of the debt from either of you, no matter what ownership percentage each of you holds.
The ownership percentage doesn't have to be 50/50
When two people buy a home, the deed records what percentage belongs to each. The logical thing is for that percentage to reflect each person's real contribution: who put in how much of the down payment, who covers what part of the costs of the purchase (legal fees, registration, taxes), and, if the mortgage payments are made unevenly, that difference too.
Putting 50/50 when one of you has contributed much more isn't necessarily illegal, but it can have tax consequences: depending on where you live, it may be treated as a gift from the partner who puts in more to the one who puts in less, with its own tax. That's why it's a good idea for the percentage on the deed to match what each of you really puts in, and to keep the paperwork for every contribution (transfers, receipts) in case you need to prove it later. A local tax professional can tell you how this works where you live.
The mortgage: almost always joint and several
Even if ownership is split 70/30 or 60/40, the usual setup is for the mortgage to be signed on a joint and several basis: the lender can demand the full payment (or the whole outstanding debt, if there's a default) from either borrower, without having to divide the claim according to each person's ownership percentage. Between the two of you, you can agree that each pays a proportional share, but that's a private matter. The lender isn't obligated to respect it if one of you stops paying: it can go after the other for 100% of the payment.
This has an important practical consequence: if you break up after buying, you're both still tied to the mortgage until it's changed, even if one of you moves out and stops living there. Changing only who is listed as owner of the home (for example, on the deed) doesn't take anyone off the mortgage unless the lender expressly approves it.
If you're not married: shared ownership and buying each other out
When an unmarried couple buys together, each of you owns a percentage of the property as a whole, not a specific physical part of it. If the relationship ends, there are a few ways out:
- Sell the home to a third party and split the money according to each person's percentage.
- One of you buys out the other's share. The person who keeps the home pays the other their share and becomes the sole owner.
A buyout can be taxed differently from a regular sale, and the exact rules and costs vary by location and by case, so this is only a general orientation. Before you run the numbers, confirm with a local lawyer or tax professional.
If you're married: it depends on your marital property rules
If you're married, what happens to the home if you separate depends on the rules that govern your marriage's property, which vary a lot depending on where you live:
- In some systems, whatever is bought during the marriage is generally treated as belonging to both of you in equal parts, even if one of you contributed more of their own money (with nuances if it can be shown that part came from one person's separate assets, such as an inheritance).
- In other systems, each spouse owns the percentage that appears on the deed, just like an unmarried couple.
Find out which applies to you before you buy, and ask a local lawyer if you're not sure.
Closing costs are shared too
Beyond the price of the home, buying involves additional costs: legal and registration fees, paperwork, and, depending on the case, taxes (which vary by location and type of property). Together these can add up to a meaningful share of the price, so budget for them from the start. It's a good idea to split them using the same criterion as the ownership percentage, not 50/50 by default if each person's contribution isn't equal.
It's also worth taking a calm look at the insurance the lender usually requires when granting a mortgage (home insurance, and sometimes life insurance), because it goes into the real monthly cost, beyond what the interest rate says.
| Item | Who usually pays | Note |
|---|---|---|
| Down payment | According to the agreed contribution | Largely defines the percentage on the deed |
| Taxes and fees at purchase | According to the agreed contribution | Vary by location and type of property |
| Monthly mortgage payment | According to a private agreement between you | The lender can claim 100% from either of you if payments are missed |
| Insurance required by the lender | Usually added to the payment | Worth reviewing when comparing mortgage offers |
Before you sign, three things to get clear
- What percentage belongs to each of you and why, with the paperwork for each contribution saved.
- What happens if one of you wants to sell and the other doesn't, even if it seems like a distant scenario on signing day.
- Whether the mortgage makes each of you liable for the whole debt (the usual setup) or only for your own share, and what that means if one of you stops paying in the future.
General information, not financial, tax, or legal advice. For your specific situation, talk to a professional.