Lithuania sees fewer marriages, but unmarried couples increasingly buy homes together

While the number of marriages in Lithuania continues to decrease, the demand for housing persists, with a notable rise in unmarried couples jointly acquiring property. Real estate company "Realco" reports that approximately one in five homes purchased by couples in their projects since 2021 were bought by unmarried partners.

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It is completely normal nowadays to buy a home together without being married, start a family, and raise children.

"It is completely normal nowadays to buy a home together without being married, start a family, and raise children," said Marijonas Chmieliauskas, sales director at "Realco." He noted variations across projects, with unmarried couples accounting for about 8% of joint buyers in the prestigious "Algirdo 3" project, compared to 22% in the mid-range "Prie Vilnelės" project.

However, lawyer Dr. Arvydas Budnikas emphasizes that the biggest mistake unmarried couples make is failing to establish agreements on how disputes will be resolved. He frequently encounters situations where, after a breakup, one co-owner continues living in the property but refuses to buy out the other's share or provide compensation. This is particularly problematic when one partner finances a larger portion of the down payment or mortgage, but the property is registered in equal shares.

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The biggest mistake in such cases is not agreeing in advance on how disagreements will be resolved.

Budnikas explains that while property acquired during marriage is generally considered joint marital property and divided equally upon divorce, the situation for unmarried couples is different. Legally, they are treated as co-owners of a property held in partial co-ownership. Each partner is entitled to the share specified in the purchase agreement, typically half or one-third. If no shares are specified, they are presumed equal. Therefore, if one partner invested more, they must prove their larger contribution in court to receive compensation.

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If the property was purchased with a loan, the obligations to the bank also remain joint. In case of divorce, one spouse usually takes over the property and the loan, paying compensation to the other, or the property is sold, the loan is paid off, and the remaining amount is divided equally.

Furthermore, Budnikas points out that co-borrowers' obligations to the bank remain unchanged. If they are jointly and severally liable, one partner's failure to pay the loan can lead the bank to demand payments from the other, regardless of their private agreement. He stresses the importance of reaching a written agreement before purchasing property to avoid lengthy and costly disputes.

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In the case of unmarried couples, the situation is different. Legally, they are considered simply co-owners, and the property is jointly owned in partial co-ownership. Each person owns the share specified in the purchase and sale agreement, for example, ½ or ⅓.