Financial Planning Magazine, July 3, 2024
Financial Planning Magazine recently asked advisors to answer a reader's question about the fairness of a scenario in which a woman's boyfriend owned a home, but she was paying half the mortgage. The reader felt the situation was unfair since the girlfriend was helping him build his equity, yet she had no home ownership.
Mr. Schneider answered by saying, "I understand how you feel, but if your sister isn't paying more than 50% of the fair market rent for the home, plus half of the ongoing monthly expenses, she is being treated fairly. She doesn't have the right to live in the house without contributing to the monthly expenses simply because her boyfriend's name is on the deed. Given the fact that she is paying $600 now versus the $1,350 per month for her last apartment, she's probably making out pretty well."
