JFR
New
Reged: 05/02/08
Posts: 2
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Okay, I'm new here and I have a confession.... I just got married 2 months ago. We are both in our 40s and both have houses. We live in my house and he is in the process of leasing his house out. We were having a discussion of "what to do next" about the properties. Do I add him to my deed since this is his home now? He is assisting in the payment of the mortgage. What would that mean if in the awful event we divorced. Does that make him entitled to 1/2 the entire equity in the house or just the 1/2 from the point he was added to the property? If I were not to put him on the Deed would the equity in the house remain "all mine" in the case of a divorce? I'm assuming it's the same for his property.
Thanks for any info..it's going to lead to some interesting conversations in our house I'm sure!
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movingon2
Platinum
Reged: 12/06/07
Posts: 209
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I believe 1/2 from the point he was added to the property…64 million dollar question…is he going to add you to his deed?
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Jada
Platinum
Reged: 06/02/07
Posts: 3459
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I wouldn't add his name to your deed unless he adds your name to the deed on his.
Just so that you know, he would be entitled to 1/2 the increase in equity during the marriage should you get a divorce. You would not be entitled to an equity share in his house since you never lived there.
And if he keeps the income generated from leasing it out separate from any joint accounts, that would not be subject to division, either.
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JFR
New
Reged: 05/02/08
Posts: 2
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Yes we talked about putting me on his deed..the biggest difference is my house is much newer and going up in value and will continue to do so. His seems to have "maxed out" and even went down in the tax appraisal this year. So he has more to gain.
Please clear up for me your answer that I wouldn't be entitled to 1/2 of the equity from his house b/c I never lived there. Is that true only if he doesn't put me on his deed or no matter what?
It's all scarily starting to make sense...
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Jada
Platinum
Reged: 06/02/07
Posts: 3459
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If he puts you on the deed, then the asset and the income earned from it is marital.
There is some debate that it only starts from the point of marriage when the name is added to the deed. But even if it did start then, some of the equity would be subject to distribution.
If he doesn't put you on the deed, it's completely separate. Unless you use marital funds to do major repairs to it, then some of the equity would be up for distribution. But if the house generates enough income to cover the major repairs, then it's not. And if he puts the income that it generates into a separate account, then any savings and interest from that would be separate.
Your best bet is to consult with an attorney about all possible scenarios regarding the premarital assets.
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theanswerguy
Platinum
Reged: 04/12/07
Posts: 2248
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You might want to consider a post-nuptial agreement that will spell out each parties interests in pre-marital assets in the event of divorce .
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Never let your sense of morals get in the way of doing what's right. Isaac Asimov
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KGrow
Platinum
Reged: 01/27/06
Posts: 3153
Loc: Colorado
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All you would have to fight about in divorce is the change in value of the properties over the period of the marriage. Hopefully values have not changed that much in 2 months. Names on deeds can be used as indication of intent as to how the property should be divided. But, legally, it is not critical who is on which deed. As a married couple, you are seen as a single financial entity. I say don't worry about it.
You should do some thinking about taxes. His is no longer a primary residence so he'll lose capital gains exclusion in 3 years. He might want to talk to a tax duded and possibly consider selling it before then.
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jbar
Platinum
Reged: 12/16/06
Posts: 1063
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This is just another example of the consequences of the moronic riddle of "marital property". The fact is that the consequences of this idiocy are largely unpredictable, and depend on: (1) applicable statute in your state; (2) relevant case law and which attorney broaches a particular line of precedence first*(1); (3) local judicial custom in the court where the divorce is filed; (4) whether the law firm representing you has "connections"*(2); (5) if the two attorneys have a "working relationship"*(3); (6) if the judge's wife is in the courtroom.
*1. As you may know, you can find case law to support practically any judgement you wish in a given case. If a judge has already given the slightest sign of agreement with one attorney's argument of case law then any alternative argument becomes essentially unavailable, to the opposing attorney, unless he wants to lose the case--and perhaps every future case in that judge's court. No judge will be made a fool of, even if he is a gold-plated one.
*2. This primarily refers to contributing to the election campaigns of all local judges.
*3. This means that they tacitly coordinate their efforts to mutually maximize their fees.
Can you believe that the solution to all of this vileness is as simple as getting rid of the entire concept of "marital property" in the first place?
Edited by jbar (05/02/08 11:43 PM)
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ATVILLAS
Platinum
Reged: 05/12/07
Posts: 2331
Loc: West Palm Beach FL
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This is one of the reasons I will not marry again, too many whatifs!
If you just live together you are completely responsible for yourselves. Once you become married all of a sudden you are under the control of idiotic laws and court systems!
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Help someone smile today!!!
Welcome to paradise!!!
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Jada
Platinum
Reged: 06/02/07
Posts: 3459
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[quote]This is one of the reasons I will not marry again, too many whatifs!
If you just live together you are completely responsible for yourselves. Once you become married all of a sudden you are under the control of idiotic laws and court systems! [/quote]
Uh, you have heard of palimony, haven't you?
And living together may not be as easy as you think when you split up. It all depends on whether any mutual debts were incurred.
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