Buying real estate as an unmarried couple living in a cohabiting partnership brings with it a number of legal and financial challenges. While married couples in Switzerland are strongly protected by civil law, unmarried couples must make their own legal arrangements to safeguard their interests. The form of ownership, financial arrangements and protection in the event of death or separation play an important role here.
Forms of ownership for unmarried couples
Couples in cohabitation usually have two main options when buying real estate :
- Co-ownership: Each partner is entered in the land register as a co-owner and owns a certain share of the property, which usually corresponds to the financial contributions. This form of ownership is clear and easy to regulate, especially in the event of a separation, as the shares are precisely defined. Each partner is liable for their own share of the mortgage.
- Joint ownership: In this case, the property belongs to both partners jointly, without fixed shares. This means that both partners bear full responsibility for the property, which can lead to difficulties in the event of a separation, as the property can only be sold as a whole. This form is used less frequently in Switzerland, but is possible.
The cohabitation agreement: a necessary safeguard
To avoid conflicts and protect yourself legally, it is advisable to conclude a cohabitation agreement . This contract regulates important aspects such as
- Ownership structure: Who owns what share of the property? How will future payments, such as mortgage installments or renovations, be divided up?
- Financial obligations: Clarify who will bear which costs in order to be covered in the event of a dispute.
- Separation: What happens to the property when the couple separates? Who keeps the property or is it sold?
Without such a contract, there is a risk that disputes will arise in the event of a separation, which can lead to lengthy and expensive legal disputes.
Tax and inheritance law aspects
Unlike married couples, unmarried couples do not benefit from tax relief. Inheritance tax can be high for unmarried couples in Switzerland, between 10 % and 50 % depending on the canton. To reduce this burden, couples should think about wills and life insurance policies at an early stage to provide financial security for the surviving partner. Without a will, the surviving partner has no legal claim to the inheritance, which means that the property will pass to the legal heirs of the deceased partner in the event of death.
Separation: What happens to the property?
In the event of a separation, the question arises as to what happens to the property and the mortgage. In the case of joint ownership, each partner is entitled to their share, which makes it easier for one partner to sell the property or for the other to pay out. In the case of joint ownership, the situation is more complicated as the property is treated as a whole, which means that both partners must agree whether the property will be sold or taken over by one partner.
Mortgage and financing in cohabitation
Unmarried couples are often jointly and severally liable for the mortgage, which means that both partners are liable for the entire debt, even if one of them is no longer able to pay their share. To minimize this risk, couples should ensure that the financial split is clear and possibly consider alternative collateral, such as life insurance.
Conclusion
Buying real estate as a cohabiting couple requires careful legal and financial planning. A cohabitation agreement offers unmarried couples in Switzerland an important safeguard and regulates ownership and financing issues in advance. It is also advisable to think about inheritance arrangements such as wills to protect the surviving partner. Professional advice from a lawyer or notary can help to avoid potential pitfalls and make the property purchase secure.
Legal notice: The information provided here has been carefully researched but cannot replace individual legal advice. It is recommended that you seek professional support for specific legal questions.
Data are without guarantee. The information on these Internet pages has been carefully researched. Nevertheless, no liability can be assumed for the accuracy of the information provided.