House - name not on deed - is it marital property?

[grandmom3]

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

I bought a house 1 1/2 years ago and put my son's name on the deed so the property taxes would be lower. I paid the down payment (mortgage is in my name) and he was supposed to give me the amount of the payment in rent each month.

He has been married for 4 years with 3 small children. His wife suddenly left (and took the children). They never paid the rent because she was not working and his income was very low (they kept promising to start soon). Now she says the house is marital property because it was acquired during their marriage. Her name is not on the deed. They made no financial contributions to it.

Will he have to buy her out if there is a divorce?

 

[CTU]

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

I bought a house 1 1/2 years ago and put my son's name on the deed so the property taxes would be lower. I paid the down payment (mortgage is in my name) and he was supposed to give me the amount of the payment in rent each month.

He has been married for 4 years with 3 small children. His wife suddenly left (and took the children). They never paid the rent because she was not working and his income was very low (they kept promising to start soon). Now she says the house is marital property because it was acquired during their marriage. Her name is not on the deed. They made no financial contributions to it.

Will he have to buy her out if there is a divorce?

Please keep all of your questions in one thread.

 

[LdiJ]

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

I bought a house 1 1/2 years ago and put my son's name on the deed so the property taxes would be lower. I paid the down payment (mortgage is in my name) and he was supposed to give me the amount of the payment in rent each month.

He has been married for 4 years with 3 small children. His wife suddenly left (and took the children). They never paid the rent because she was not working and his income was very low (they kept promising to start soon). Now she says the house is marital property because it was acquired during their marriage. Her name is not on the deed. They made no financial contributions to it.

Will he have to buy her out if there is a divorce?

Possibly. However, it would be 1/4 of the EQUITY in the house, not its value. Unless you put down a huge down payment you really shouldn't have much equity after only owning it 1 1/2 years.

 

[grandmom3]

Possibly. However, it would be 1/4 of the EQUITY in the house, not its value. Unless you put down a huge down payment you really shouldn't have much equity after only owning it 1 1/2 years.

I did put down a large down payment and then did a lot of repairs - a total of $100,000.

 

[LdiJ]

I did put down a large down payment and then did a lot of repairs - a total of $100,000.

Your son needs a really good attorney. He is going to want the attorney to argue that the house was a gift to him only, which would make it separate property rather than marital property. I hope that desire to save money on property taxes doesn't end up costing your son 25k.

 

[latigo]

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

I bought a house 1 1/2 years ago and put my son's name on the deed so the property taxes would be lower. I paid the down payment (mortgage is in my name) and he was supposed to give me the amount of the payment in rent each month.

He has been married for 4 years with 3 small children. His wife suddenly left (and took the children). They never paid the rent because she was not working and his income was very low (they kept promising to start soon). Now she says the house is marital property because it was acquired during their marriage. Her name is not on the deed. They made no financial contributions to it.

Will he have to buy her out if there is a divorce?

Before you make any decisions as to how you intend to treat the ownership of the home I suggest that you consult with a good South Carolina criminal law attorney. The purpose to learn whether carrying out this subterfuge to avoid the higher property taxes you in anyway may have violated the following excerpts from South Carolina's Code of Laws - Crimes and Offenses Section 16-13-10:

"It is unlawful for any person to cause or procure to be falsely made any record of land."

"A person who violates (the above) is guilty of a felony".

 

[latigo]

Before you make any decisions as to how you intend to treat the ownership of the home I suggest that you consult with a good South Carolina criminal law attorney. The purpose to learn whether carrying out this subterfuge to avoid the higher property taxes you in anyway may have violated the following excerpts from South Carolina's Code of Laws - Crimes and Offenses Section 16-13-10:

"It is unlawful for any person to cause or procure to be falsely made any record of land."

"A person who violates (the above) is guilty of a felony".

Adding:

Also rest assured that if title to the home was taken in the name of your son, his name will be on that mortgage! No mistake about that. If not, it would be worthless so far as the lender having a security interest.

 

[LdiJ]

Adding:

Also rest assured that if title to the home was taken in the name of your son, his name will be on that mortgage! No mistake about that. If not, it would be worthless so far as the lender having a security interest.

One would assume that to be correct, but we have had so many people on this forum who had two people on a deed but only one on the mortgage that we cannot assume that.

 

[latigo]

One would assume that to be correct, but we have had so many people on this forum who had two people on a deed but only one on the mortgage that we cannot assume that.

NO, we have not had instances in this forum were two people were on a deed at the time of the creation of a mortgage lien in which only one is a party to the mortgage.

What we have had is people CLAIMING that so-and-so has been on the title from the beginning but is not a party to the mortgage!.

And most understandably you don't know why those so claiming are mistaken.

 

[grandmom23]

Before you make any decisions as to how you intend to treat the ownership of the home I suggest that you consult with a good South Carolina criminal law attorney. The purpose to learn whether carrying out this subterfuge to avoid the higher property taxes you in anyway may have violated the following excerpts from South Carolina's Code of Laws - Crimes and Offenses Section 16-13-10:

"It is unlawful for any person to cause or procure to be falsely made any record of land."

"A person who violates (the above) is guilty of a felony".

This was done on the advice of a lawyer. It was legal since the owner lives in the house.

 

[latigo]

This was done on the advice of a lawyer. It was legal since the owner lives in the house.

Then don't be telling us that "I bought a house" and that the reason that title was taken in your son's name was to cheat the county and state out their justly due ad valorem taxes!

Perhaps you have enough confidence in the attorney's "advise" to run that by the local taxing authorities adding that the mortgage is in your name and you have been paying both the property taxes and mortgage note installments, which your son was to have reimbursed you by way of rent! Explaining why an "owner" would be pay rent on property they supposedly own.

Do you think you'd risk it? I seriously doubt it.