I am trying to help two friends purchase a home. The mortgage would have to be solely in my name but they would pay the down payment and all expenses, including the mortgage, for the home going forward. I am married and am the sole income for my family, my husband stays at home with our kids. How can I keep this purchase from being considered marital property?
1 Answer from Attorneys
If you are going to be on the deed as an owner, your interest in it would be considered marital because it was acquired during the marriage and not from an out of marriage source. By the way, the lender is going to require all owners of record to sign the deed of trust (mortgage), even though you may be the only party to the promissory note and the loan was based just on your credit. This is a very risky transaction for you because if your friends run into financial difficulties and default, your credit will be adversely affected. You need an agreement with them that allows you to take control of the property if that happens. In that agreement, you could have a provision that says that as long as they keep up the payments, you agree that all equity in the property belongs to them, which might resolve the marital property issue.