Co-investing in a home is one of the largest investments you may ever make. As a co-owner, you can lose more than just your original investment: your home, relationships, creditworthiness, and peace of mind are also at risk. But this is the bet that 50 million US co-owners take.

For all the unknowns, here's what we do know:

👉 All of us will die one day

👉 100% of co-ownership arrangements will end through sale, transfer, or death

👉 Property and tax laws don't afford co-owners the same protections as married couple homeowners

Most co-owners have never considered an exit strategy, let alone created one. Perhaps this is because humans aren't great at accurately assessing personal risk. We consistently underestimate risks like death (Andersson et al., 2007) and financial loss (Remo Stössel et al., 2015). It doesn't matter if we miscalculate or ignore risks; they exist whether we take steps to address them or not.

Remember…

The day before you die, you're alive.

The day before your lover leaves you, they haven't.

The day before a financial catastrophe strikes, it hasn't.

Co-owners who avoid mapping out how to unwind co-ownership when the day comes are walking a tightrope. Co-ownership always ends. The real question is, what can you do about it?

⚠️ Caution

One hundred percent of co-ownership arrangements will end through death, sale, or transfer.

But one in three US co-buyers aren’t interested in an exit strategy. In nearly all cases we’ve seen in the wild—instances of co-ownership where we were not involved—the co-owners have no documented exit strategy.

One co-buyer recently shared that they do not require an exit strategy because they have “no plans to exit.”

If you don’t have an exit strategy, you will incur unnecessary costs. These can manifest as probate costs, taxes, legal fees, or other expenses. Best to plan ahead.

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