Sale of Real Estate

[Fancy]

My husband and I currently reside in a home owned by my mother. My mother has agreed to list the property for sale. If the property, sells, we plan to roll the proceeds into purchasing a bigger home. We would need a small -- $30,000 mortgage to cover the cost of the house we have in mind. My mom is thinking about putting the new house in her name only. (My brother went thru a nasty divorce and ended up paying lots of $$ to his ex for the property settlement). If she gets a mortgage in her name, and we make the mortgage payments (sort of like a rent payment), and if somewhere down the road my husband and I divorced, would he have any rights to any part of the property? If she and I got the mortgage jointly, would he have any rights to the property? Thanks.

 

[Tracey]

Hi Fancy,

I have friends who went to law school at IU. Is the Snow Lion restaurant still in business? Always liked their pea pod chicken....

It sounds like you 3 need some sort of purchase agreement/separate property agreement or living trust. Talk to a divorce lawyer and an estate planner. Even if the home's in mom's name, you and he are using joint assets (your salaries) to pay the mortgage. He may be able to argue that he should have some of the home, or that mom should reimburse him for the money he's put into it.

Spend some time thinking about what you're afraid of and how to address those concerns in a way fair to all. Then ask some local lawyers if your proposed solutions will do the job.

Tracey

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