I thought the house was mine

[Rosetta]

My husband and I was told by his parents If we take over the payments of the house that they had bought for him, that they would give it to us. The only thing is that we would have to pay off the remaining of the balance in the house. We took the house beliving it was ours and the children. The house is valued for 185,000.00 but the house was a fixer-upper. This house was in pretty bad shape I even have pictures of it the way it look before. Having the thought this home was ours i spent money into it got new floors new accoustic to the walls painted the house you name it the house was getting fix with my husband and my work. Know my in-laws want me only me to sign a paper declaring the house would be my husband house if case we got a divorce, which i believe that is not right we have been living here for three years, and i have put money into it and case if we did get a divorce what kind of **** is that they want me to give up my rights. I want to know if i can sue them to get my money that i have paid toward the house beliving the house was ours and the money i have put in it, for i can get a home with our names only. The house that we live in is his parents name still and they want to turn the house over to him, but before they do they want me to sign this paper so i need help with advice.
Please I need help all I want is what is mine and my three children i have been married for 10 years and this makes me sick but i want to protect myself and my family.
Thanks who can just guide me what i should do,
Rosetta Rodriguez, From San Diego, Ca.

 

[Tracey]

Their request isn't unreasonable from their point of view. They want to make the house a gift to their son only, not to the both of you. They don't want you living in the house they gave their son.

The problem with this is that the equity in the house will appreciate in value during the marriage, and the appreciation will be due to efforts of the marital community. This would normally make the appreciation community property, while the original gift would be his separate property.

You and husband should talk to the parents and explain that, while you understand they want to give the house to him only, since the house isn't paid for, you two will be using marital property (your salaries & time) to pay the mortgage. If you 2 bought a different house, you'd each own 1/2 of it under the community property laws & would receive 1/2 the proceeds from sale. It's not fair to make you put money and sweat equity into their house, but not compensate you for it in the event of a divorce.

A reasonable solution would be for all four of you to agree on the house's fair market value & the equity when you and husband took over the payments (3 years ago). Then you and husband sign a community property agreement that the original equity is his separate property. All additional equity (mortgage payments + improvements + appreciation) are community property. Husband would be awarded the house in the event of a divorce if he pays you 1/2 of the total additional equity. If husband doesn't want to give you money or property equal to your share of the additional equity, the house would be sold and you'd receive your share from the sale money. Essentially, this is a contract setting the terms under which husband gets to buy you out and preventing you from getting the house in the event of a divorce (unless you buy it on the open market).

Alternatively, you & husband could sign a community property agreement declaring the house, or at least the equity you two built up in it while married, community property. Mention the paper his parents had you sign and specifically override it. Just don't tell the parents about it!



------------------
This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.