10. Simplicity: It is easy to create a joint tenancy. All that needs to be done is include a clause in the title to the property indicating the nature of ownership.
9. Devotion to an Obligation: Owning a property as joint tenants is proof of long term commitment to the relationship.
8. Security: Owning a property as joint tenants makes more financial sense than paying the rent for years. Property ownership provides financial security to the partners and can also provide for retirement. The partners can avail of the equity in the property.
7. Tax: Home ownership comes with tax benefits. However for unmarried couples claiming this tax benefit can be a little difficult. While married couples can file joint returns, unmarried couples will need to work with a tax attorney to determine how they can get the benefit of home ownership. If one partner claims the tax deductions, the other should be suitably compensation.
6. Avoid Gift Tax: If the home is owned by one partner and the other lives there without paying any rent, it will considered a gift arrangement by the IRS. Gifts above $10,000 are subject to gift tax. So if the IRS determines that the yearly rent is over $10,000, then the partner owning the home will have to pay gift taxes.
5. Joint Assets: In joint tenancy, the owners have equal shares in the ownership of the home. Equal ownership generally results in a equal sharing of responsibilities in any relationship.
4. Joint Debt Responsibility: If the home has been financed through a mortgage, then the joint tenants will have equal liability for the mortgage.
3. Evidence of Owning the Property: If the relationship fails, both the partners have documentary evidence of their share of ownership.
2. Avoid Financial Hardship: Since both partners are joint owners and equally liable for the mortgage, one of them cannot leave the other with the obligation of paying the entire mortgage.
1. Entitlement of Survivorship: In joint tenancy, when the other joint tenant dies, the other automatically gets the title. There is no court process involved. In the absence of a joint tenancy, when one partner dies, the property will go to heirs of the deceased partner unless there is a will indicating otherwise.