Property question

[marcias]

What is the name of your state?Indiana
My son and his wife have been married for just over a year. They just closed on a home approximately 3 weeks ago and are scheduled to move into it this weekend. He now tells me that they are going to separate. His name is not on the loan for the house because he had not worked at his job long enough to qualify for the loan. Her name only is on the loan. His wife's mother wants him to sign a quick claim deed but I don't think that is a wise move. Wouldn't it keep him from getting half of the equity they have in the home? Also they have leases on their cars - each in their name but not their spouses. Does he have any liability on her lease since it is in her name only? Thanks for your help.

 

[LdiJ]

What is the name of your state?Indiana
My son and his wife have been married for just over a year. They just closed on a home approximately 3 weeks ago and are scheduled to move into it this weekend. He now tells me that they are going to separate. His name is not on the loan for the house because he had not worked at his job long enough to qualify for the loan. Her name only is on the loan. His wife's mother wants him to sign a quick claim deed but I don't think that is a wise move. Wouldn't it keep him from getting half of the equity they have in the home? Also they have leases on their cars - each in their name but not their spouses. Does he have any liability on her lease since it is in her name only? Thanks for your help.

If they just closed on a home then they don't HAVE any equity to split unless they put down a larger than normal down payment. A standard down payment is normally eaten up by closing costs and mortgage insurance. Also, in Indiana if he in not on the mortgage then I don't believe that he would be on the deed either. Did he attend the closing? Did he sign paperwork?

Certainly, if he is on the deed then I don't think that he should sign the quit claim deed until they actually divorce...but honestly, its really unlikely that there is any equity for him to share.

As far as the cars are concerned, if neither is on the other's lease, then neither is responsible for the other's lease.