Real estate allocation after divorce

[ellenmak]

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

I and my mother-in-law bought condo couple years ago. We are joint tenants with rights of survivorship.
I know, if somebody from us dies first, the other tenant will receive 100% of this property. But now, my mother-in-law decided to divorce with her husband, who never been included in the title and never mention this property as his residency. My question is: Does my father-in-law have any rights on this condo in the case of divorce, or it is still just mine and my mother –in-law’s?
Thank you for any suggestions and replies.

 

[mistoffolees]

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

I and my mother-in-law bought condo couple years ago. We are joint tenants with rights of survivorship.
I know, if somebody from us dies first, the other tenant will receive 100% of this property. But now, my mother-in-law decided to divorce with her husband, who never been included in the title and never mention this property as his residency. My question is: Does my father-in-law have any rights on this condo in the case of divorce, or it is still just mine and my mother –in-law’s?
Thank you for any suggestions and replies.

Not enough information.
1. Were they married when the house was purchased?
2. Where did the money come from that was used to buy the house?
3. Were any marital funds used to pay the mortgage, taxes or keep the house up?

 

[MFinancier]

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

I and my mother-in-law bought condo couple years ago. We are joint tenants with rights of survivorship.
I know, if somebody from us dies first, the other tenant will receive 100% of this property. But now, my mother-in-law decided to divorce with her husband, who never been included in the title and never mention this property as his residency. My question is: Does my father-in-law have any rights on this condo in the case of divorce, or it is still just mine and my mother –in-law’s?
Thank you for any suggestions and replies.

Since it's your Mother-in-law, I'm assuming you are married...and her husband could have the same rights as your husband/wife..depending on the questions in the last post. If either one has an interest and either of you get divorced...hopefully you will have other assets to offset their interest. You could try to transfer the title to tenants in common...but that would only address the suvivorship issue...not the issue of having your father-in-law or mother-in-law (or all four of you) next to each other in the lazy boys! Pick your poison!

 

[ellenmak]

Reply

Not enough information.
1. Were they married when the house was purchased?
2. Where did the money come from that was used to buy the house?
3. Were any marital funds used to pay the mortgage, taxes or keep the house up?

1. Yes, they were married when the house was purchased.
2. We took a loan for this condo. I am the main borrower, my mother-in-law is coborrower. The only income she has is Social Security benefits. I am paying 100% for mortgage from my checkbook. 10,000 downpayment was withdrawn from my saving account.
3. They pay utilities, but the bills are under my husbands' name. They giving us around 60% cash every month to pay for mortgage and then I am paying from my checking account. My father-in-law name never mentioned in correlation to this condo.

Thank you.

 

[ellenmak]

Since it's your Mother-in-law, I'm assuming you are married...and her husband could have the same rights as your husband/wife..depending on the questions in the last post. If either one has an interest and either of you get divorced...hopefully you will have other assets to offset their interest. You could try to transfer the title to tenants in common...but that would only address the suvivorship issue...not the issue of having your father-in-law or mother-in-law (or all four of you) next to each other in the lazy boys! Pick your poison!

Thank you for reply. Hopefully, I would never divorce, it is just my mother wants divorce. She does not have any other property or assets to offset his interest. Does it mean that he is eligible for 25% of this property? I am the main borrower of the mortgage loan and pay all mortgage from my checking account, but he is hardly working, and we with my husband support them.

THnak you.

 

[mistoffolees]

1. Yes, they were married when the house was purchased.
2. We took a loan for this condo. I am the main borrower, my mother-in-law is coborrower. The only income she has is Social Security benefits. I am paying 100% for mortgage from my checkbook. 10,000 downpayment was withdrawn from my saving account.
3. They pay utilities, but the bills are under my husbands' name. They giving us around 60% cash every month to pay for mortgage and then I am paying from my checking account. My father-in-law name never mentioned in correlation to this condo.

Thank you.

Even if your FIL's name isn't on the mortgage, it sounds like he is contributing part of the upkeep (esp utilities) and mortgage. If that is correct, then her share is likely to be considered a marital asset. You'll probably need an attorney to figure it all out since figuring out the percentage that is hers is going to be tough.

 

[MFinancier]

1. Yes, they were married when the house was purchased.
2. We took a loan for this condo. I am the main borrower, my mother-in-law is coborrower. The only income she has is Social Security benefits. I am paying 100% for mortgage from my checkbook. 10,000 downpayment was withdrawn from my saving account.
3. They pay utilities, but the bills are under my husbands' name. They giving us around 60% cash every month to pay for mortgage and then I am paying from my checking account. My father-in-law name never mentioned in correlation to this condo.

Thank you.

Sounds like they/he could be entitled to a portion of the equity excluding your downpayment (she's on the title and the mortgage)...but it doesn't sound like there is much evidence that they are paying any expenses either (except the cash deposit you're making into your checking account and any corresponding withdrawal they may have in their savings a/c...so let your conscience be your guide...it is your family and I don't think that would be right!). If they weren't reimbursed for those expenses...there wouldn't be much to split (just pure passive appreciation). Even with credit for those expenses it couldn't be that much and you could just buy him out if need be. I quess the real question is...why did you put her on the title in the first place?

 

[ellenmak]

Sounds like they/he could be entitled to a portion of the equity excluding your downpayment (she's on the title and the mortgage)...but it doesn't sound like there is much evidence that they are paying any expenses either (except the cash deposit you're making into your checking account and any corresponding withdrawal they may have in their savings a/c...so let your conscience be your guide...it is your family and I don't think that would be right!). If they weren't reimbursed for those expenses...there wouldn't be much to split (just pure passive appreciation). Even with credit for those expenses it couldn't be that much and you could just buy him out if need be. I quess the real question is...why did you put her on the title in the first place?

Maybe, I did not fully explain my intentions. I want my mother-in-law to own this place; she deserves every penny from it. But my father-in-law isn’t really a good person; we all don’t want him to have any rights on this condo. I included her in the title, because my salary wasn’t enough to be eligible for the mortgage loan. I needed it to show additional $5,000 as my income in order to qualify for the mortgage, therefore we showed her and SSI and included in the loan and title.

 

[LdiJ]

Maybe, I did not fully explain my intentions. I want my mother-in-law to own this place; she deserves every penny from it. But my father-in-law isn’t really a good person; we all don’t want him to have any rights on this condo. I included her in the title, because my salary wasn’t enough to be eligible for the mortgage loan. I needed it to show additional $5,000 as my income in order to qualify for the mortgage, therefore we showed her and SSI and included in the loan and title.

Unfortunately he is probably going to be entitled to 25% of the equity in the condo....unless he voluntarily foregoes it. However, since your down payment can be backed out of the equity, there may not actually BE any equity if you have only owned it a couple of years. The way that the housing market has tanked you may have less equity than your down payment right now.

I would recommend getting the condo appraised, to see where you stand....but do it quietly if possible.

 

[MFinancier]

Maybe, I did not fully explain my intentions. I want my mother-in-law to own this place; she deserves every penny from it. But my father-in-law isn’t really a good person; we all don’t want him to have any rights on this condo. I included her in the title, because my salary wasn’t enough to be eligible for the mortgage loan. I needed it to show additional $5,000 as my income in order to qualify for the mortgage, therefore we showed her and SSI and included in the loan and title.

Ah yes...hence the joint tenancy...but I believe he will still be entitled to a portion of the equity even if she dies or they get divorced...if he can prove those 60% expenses you claim she/they are paying in cash can be traced to their marital funds. If it's coming out of her SS or SSI probably not...because they aren't considered marital assets or divisible in divorce. If not...the equity will most likely be considered her separate asset and it will pass to you through the survivorship rights leaving him with zippo. Better check with an estate attorney to make sure her will or trust is set up appropriately just to cover all your bases.