If two people are married and one buys a house, does the other have any legal claim to it?

Question

Under the following conditions:

- Both spouses work and make equal amounts of money
- Only one spouse's name is on the loan and deed
- Only one spouse makes payments on the house
- The couple splits all other bills (electric, water, etc) down the middle, with each spouse paying exactly half
-The couple were already married when the home was purchased
- The home is used as the couple's primary residence

In case of divorce or separation, does the non-buying spouse have any legal claim to the house? Will judges force the buying spouse to split the equity in the house with the non-buying spouse because they were married when the home was purchased?

For the record, we live in Texas.

Also, everyone seems to assume that my husband is the one with the house. The truth is, *I* would be the one with the house. (This is a theoretical situation-- as of now, there IS no house. I'm weighing the pros and cons of buying one even though my husband is not in a position to participate in this kind of a transaction at this time)

Answer 1

Depends on your state's laws, but it will probably be considered marital or community property because you both lived there. If the spouse owned it before the marriage, then that spouse has a greater claim on it.

If you live in a community property state however (like Texas), then its pretty much half and half.

Answer 2

Hi, I think some education for your wife might be in order, from someone other than you, no offense. A third party influence could be helpful, but my expertise is not in marital affairs, even after two of them, LOL. An attorney might be bucks well spent, it should not be hard to find one who invests in real estate. The answer to the question is yes! The rule is, it takes one to buy and two to sell! If you have access to funds to provide certified funds at a closing, you can buy anything you want to. You can put the property in your name only. You can later provide a half interest by quit claim to keep the peace. The only time you may have a problem is when you get a loan to purchase, the lender will require her to sign the note and deed of trust, always, unless you use a Trust or, say a Limited Liability Company (LLC). If you establish a Trust and fund the trust for the purchase, that will work but if you need a loan, the Trust will need to show the ability to pay then loan, and yes you can have a conventional home loan, in the name of the borrower's Trust, but an LLC would be a business loan. I suspect you are requiring a loan as you said escrow documents, I think you mean closing documents. Some states require transactions to be closed in escrow, but this simply is for a third party agent to transfer funds and good title. As is usually the case, if you got enough money you can do what ever you want to, but if there is a loan the lender will require her to sign. Reason is, even if she is not on the deed, she has a marital interest in the property and in the event of a foreclosure the lender will want to foreclose on her as well as you in the event of default. Another reason is for title insurance purposes, as her interest needs to insured over when you pass on the title, that's why it always takes two to sell. You might consider a straw man, a third party to buy it for you and then he quit claims the property to you. You must tell the bank what your arrangement is, otherwise, the lender can call the note due under the Due on Sale Clause. You can co-sign a note by yourself, but if you are a borrower, then she is back in the picture. You might check with other lenders. If you find a "private investor" known by Realtors and closing agents, they can buy the house and you can buy it from them on an installment contract without her signature, or better yet, put your name on the deed with the investor as a partnership after the investor acquires the property. If you know what a quit claim deed is and actually does, conveying only that interest that the grantor has in the property or to the extent of participation, like a half interest, then such a deed may be used, but understand you would not be insured under any title policy from the initial closing, unless you obtained a policy after you acquire it by quit claim. Have you ever considered making mortgages instead of owning the house? If you make a loan to someone who buys the house, you'll receive payments each month and if they don't pay, you can take a deed in lieu of foreclosure by accepting a quit claim deed. You can make someone a loan without your wife signing anything. If you take back a property, she never signs a thing. But even if you acquire a property by foreclosure or a deed in lieu of foreclosure, you will need her to sign when you sell the property. Now I'll talk like an old man, this is really something you and your wife need to get straight. There is some reason she doesn't want to buy a house and that's strange. You really need to find out what the reason is and overcome the problem with her, again, a third party might help. Maybe you're bitting off more than she thinks you can chew, it's a matter of trust and if you are new in a marriage, get some help, because this is something that can lead down the divorce alley, maybe you should talk about that too! Hope you work it out. Maybe my answer is not what you wanted to hear, but that's the way it is! Good Luck! B

Answer 3

Yes. Both spouses have a legal claim to the house. In a no-fault state, the person whose name was on the deed would likely either have to sell the house, or would need to make some kind of concession in the divorce agreement to cover the cost of the other person finding housing. In a "fault" state, if there still are any, it would depend on whose "fault" the divorce was. In most cases, the non-buying spouse is going to get SOMETHING out of the deal. What they get depends, however, on how good their attorney is.

Answer 4

yes, even if everything was paid by the one wealthy spouse, as long as the house was purchased after they were married, it is considered property of the married and can be divided upon divorce or death, even if the contracts are signed by just one spouse.

Answer 5

Yes, we nolonger live in the stone age. ie not rude remark, just a saying. Thanks. Law was changed because back in the day a man would own the house and everything and toss the wife out on the street.

Now if he can prove that the house was signed before you guys got married, that is another story.

Answer 6

yes. its a marital asset and subject to division. you can try claiming special equity IF you have proof to show the other spouse made no mortgage payments. that's pretty tough though.

Answer 7

The house is considered marital property and is fair game in a divorce.

Answer 8

The primary residence is considered communal property and will be split accordingly.