Home owned prior to marriage

[frylover]

What is the name of your state (only U.S. law)? Louisiana

First, let me state that this question has nothing to do with me personally and that I am totally aware that it is none of my business. I'm just concerned for my BIL, who, next to my husband, is my favorite person in my husband's family!

If my BIL purchases a house in his name only BEFORE marriage, what happens if/when he divorces? Is the wife entitled to half the equity accrued only since the marriage, or from the date of purchase. Could he be ordered by the court to sell property that was his prior to the marriage and split the proceeds with her?

I'm just asking because sometimes he will ask my opinion before he does something, and occasionally he will even listen, so I'd like to have some facts to share with him.

 

[LdiJ]

What is the name of your state (only U.S. law)? Louisiana

First, let me state that this question has nothing to do with me personally and that I am totally aware that it is none of my business. I'm just concerned for my BIL, who, next to my husband, is my favorite person in my husband's family!

If my BIL purchases a house in his name only BEFORE marriage, what happens if/when he divorces? Is the wife entitled to half the equity accrued only since the marriage, or from the date of purchase. Could he be ordered by the court to sell property that was his prior to the marriage and split the proceeds with her?

I'm just asking because sometimes he will ask my opinion before he does something, and occasionally he will even listen, so I'd like to have some facts to share with him.

It would be the equity that accrued during the marriage, assuming that the mortgage, upkeep and taxes were paid by marital funds. (regular earnings) If by some chance he had premarital funds available to pay the mortgage, upkeep and taxes, then no marital equity would accrue.

Normally a judge would not order him to sell a home in his name only, in order to pay her, her share, however it could happen if he could not refinance or otherwise come up with the necessary funds to pay her off. Sometimes however a marital share of a certain asset could be traded for other assets, or he could keep her share in exchange for taking on the full burden of equivalent marital debt.

I will add though, if he is already contemplating divorce, then he may not be ready to marry.

 

[frylover]

Thanks, LDiJ! Can always count on you!

I don't think he has any immenent plans to marry. He was planning on buying a home in a few months, but he is now dating someone and may be rethinking that. I was trying to figure out if it would make more sense for him to buy the house and go into any future marriage with something in his own name than to move in with a prospective mate.

Like I said, I get it's really not my business, but sometimes he will tell me what he's thinking and ask "So,what do you think....and be honest with me." Sometimes he listens, sometimes not. Had he asked me five and a half years ago "what do you think?", I wouldn't be here now asking this question!

 

[LdiJ]

Thanks, LDiJ! Can always count on you!

I don't think he has any immenent plans to marry. He was planning on buying a home in a few months, but he is now dating someone and may be rethinking that. I was trying to figure out if it would make more sense for him to buy the house and go into any future marriage with something in his own name than to move in with a prospective mate.

Like I said, I get it's really not my business, but sometimes he will tell me what he's thinking and ask "So,what do you think....and be honest with me." Sometimes he listens, sometimes not. Had he asked me five and a half years ago "what do you think?", I wouldn't be here now asking this question!

If someone can afford to buy a house, and can qualify for a mortgage NOW is absolutely the BEST time to do so. If he closes on a house prior to 12/1/09 he will get an 8000.00 refundable tax credit (assuming that the house is worth at least 80k) that does NOT have to be paid back...and will be getting the most house for the best price.

So, if he is not buying the house in anticipation of marriage..anticpation of two incomes..but is doing it for himself, now is absoltuely the best time to do it.

Its a no brainer...

 

[frylover]

Thanks again!

 

[Ohiogal]

If someone can afford to buy a house, and can qualify for a mortgage NOW is absolutely the BEST time to do so. If he closes on a house prior to 12/1/09 he will get an 8000.00 refundable tax credit (assuming that the house is worth at least 80k) that does NOT have to be paid back...and will be getting the most house for the best price.

So, if he is not buying the house in anticipation of marriage..anticpation of two incomes..but is doing it for himself, now is absoltuely the best time to do it.

Its a no brainer...

Thought that was FIRST TIME BUYERS only?

 

[frylover]

I thuoght so, too.....and that actually raises another question.

This would be the first time HE bought a house by himself. But if he and his first wife bought a house together 10 or so years ago, would that disqualify him?

 

[penelope10]

One does not have to be a first time homeowner, however, one cannot have owned a principle residence during the three year period prior to the purchase. The tax credit = 10 percent of the home purchase price up to max of $8,000. It's a great deal, Sissy bought her first house and will be able to take advantage of this.

refer to: http://www.federalhousingtaxcredit.com/

 

[LdiJ]

One does not have to be a first time homeowner, however, one cannot have owned a principle residence during the three year period prior to the purchase. The tax credit = 10 percent of the home purchase price up to max of $8,000. It's a great deal, Sissy bought her first house and will be able to take advantage of this.

refer to: Federal Housing Tax Credit for First-Time Home Buyers: Home

Yep, a first time homebuyer is anyone who has not owned a home in the three year period prior to the purchase.

 

[CourtClerk]

If someone can afford to buy a house, and can qualify for a mortgage NOW is absolutely the BEST time to do so. If he closes on a house prior to 12/1/09 he will get an 8000.00 refundable tax credit (assuming that the house is worth at least 80k) that does NOT have to be paid back...and will be getting the most house for the best price..

Shoot, still doesn't make it worth buying a house in my neck of the woods....

 

[penelope10]

Shoot, still doesn't make it worth buying a house in my neck of the woods....

I LOVE CALI---just can't afford to buy a house there. If I could I'd be up and out of Tejas ASAP. The only thing that bothers me is now on the LA freeway motorcyclists can pass on the white line.....

 

[LdiJ]

Shoot, still doesn't make it worth buying a house in my neck of the woods....

I donno CC there are some real deals to be had out there, particularly on foreclosed homes. Right now is the best time to get the most house for your dollar. There is also the yearly tax advantage as well as the first time homebuyer credit, and you build equity as well.

It might be in your best interest to at least do a little exploring on the subject. I suspect that you would qualify for a mortgage fairly easily, particularly if you could find something that wasn't much more than the rent you are paying now.

 

[CourtClerk]

I donno CC there are some real deals to be had out there, particularly on foreclosed homes. Right now is the best time to get the most house for your dollar. There is also the yearly tax advantage as well as the first time homebuyer credit, and you build equity as well.

It might be in your best interest to at least do a little exploring on the subject. I suspect that you would qualify for a mortgage fairly easily, particularly if you could find something that wasn't much more than the rent you are paying now.

The problem is this.... even foreclosed houses in my area are going for somewhere in the 3 - 400K area. Sure, if I wanted to move further out and endure the LA commute, I've seen a beautiful home in Riverside county for 130K. However, that would mean a 75 mile commute each way back and forth to work.

 

[LdiJ]

The problem is this.... even foreclosed houses in my area are going for somewhere in the 3 - 400K area. Sure, if I wanted to move further out and endure the LA commute, I've seen a beautiful home in Riverside county for 130K. However, that would mean a 75 mile commute each way back and forth to work.

Ouch...yeah you wouldn't want to saddle yourself with that kind of house payment or that kind of commute.