Unmarried homebuyers face financial risk when relationships end

Aaron’s cousin bought a house with a girlfriend, they split, and the ex stayed in the property while refusing to refinance, leaving the cousin’s credit tied to a home he no longer controlled. Ownership and mortgage liability are separate, and the paperwork, not the relationship status, determines who still owes the bank.

The real risk sits at the intersection of title and debt

If you buy with someone you are not married to, title and mortgage can diverge in ways many buyers do not expect. A quitclaim deed can transfer an ownership interest, but it does not remove a borrower from the mortgage, which is why a partner can give up title and still remain on the hook for the loan. That is the legal fault line in a split: one person may still own part of the house, while both names can remain attached to the debt until the lender agrees to a refinance, an assumption, or the home is sold and the loan is resolved.

Unmarried co-buying is not a niche choice anymore

The risk is showing up in a market where unmarried buyers are no longer rare. In the National Association of Realtors’ 2026 generational trends data, 53% of Gen Z buyers purchased homes on their own, the highest share across generations, and 17% bought as unmarried couples, also the highest share of any generation. Gen Z buyers accounted for just 4% of all home buyers in the past year, entered the market with the lowest median household income at $76,000, and tended to buy smaller homes, including a typical 1,600-square-foot property.

What should be in writing before you sign

Unmarried applicants can apply jointly for a mortgage, but the CFPB urges them to discuss income, credit scores, debt obligations, and each person’s share of the down payment, closing costs, monthly payments, and utilities before applying. The CFPB recommends a cohabitation agreement that spells out what happens if the relationship ends. That agreement should do more than say you both intend to “share” the house. It should define who owns what, who pays what, and how the exit works if one person wants out and the other wants to stay.

Before closing, the written plan should cover:

• Exact ownership shares, so title reflects the real split of the asset. • Who lives in the home if the relationship ends. • How one partner buys out the other, including the valuation method. • A deadline for refinancing, selling, or formally assuming the loan. • How carrying costs, repairs, taxes, and insurance are handled while both names remain tied to the property.

If the relationship ends, the loan matters more than the deed

When one partner stays in the house and refuses to refinance, the departing borrower can remain financially exposed until the loan is refinanced, assumed, sold, or otherwise resolved. Homeowners who want to remove the original borrower’s name from the mortgage generally need to assume liability or refinance, and an assumption typically requires underwriting review by the investor or mortgage agency. In other words, walking away is not a solution if your name is still on the note. If payments slip, the lender can still treat the debt as yours, which is why unresolved co-borrowing can keep a credit profile vulnerable long after the relationship itself is over.

Buying together makes more sense when both of you can see the numbers clearly, can afford the home under the agreed split, and have already written down what happens if one person wants to leave. It makes less sense when either partner needs the other’s income just to qualify, when no one wants to define a buyout price, or when one person is relying on the other to refinance later without a binding deadline.

Student-loan changes show how quickly affordability rules can shift

The same affordability squeeze is hitting families on another front. The One Big Beautiful Bill Act was signed into law on July 4, 2025, and a final rule issued on May 1, 2026 put most loan-related provisions into motion for the July 1, 2026 changes. Under the new Parent PLUS rules, annual borrowing is capped at $20,000 per dependent student beginning with academic years starting on or after July 1, 2026, and aggregate Parent PLUS borrowing is capped at $65,000 per child. Some parents will have reduced borrowing eligibility depending on whether the student qualifies for a limited exception.

The cost of borrowing also changed on July 1, 2026. For federal Direct Loans first disbursed between July 1, 2026, and June 30, 2027, the fixed rates are 6.52% for undergraduate subsidized and unsubsidized loans, 8.07% for graduate unsubsidized loans, and 9.07% for Parent PLUS loans, and those rates stay fixed for the life of the loan. The overhaul affects millions of borrowers, the Education Department is streamlining the system from seven repayment plans, and total student debt stands at almost $1.9 trillion. On CBS Mornings, Jill Schlesinger said the Department of Education began sending notices on July 1 to some federal student loan borrowers with important deadlines.