Does my wife need to be on the tittle?

Question

So I have 10% for a down payment, my parents are going to give me another 10%, my plan was similar my to buy a house, live in it for a year, and after rent it out.

I recently got married in the state of Florida. The property would also be in Florida.

Since I am putting the down payment, and I wanted the tittle if the house to be under my name.

I heard that I can’t do that. My loan officer said that “in the state of Florida, both you and your wife need to be on the loan, and on the home tittle”. This doesn’t sound right to me.

I understand that she needs to be aware that I am getting a loan and buying a property, which she is. But I don’t think it’s fair that by law I need to put her credit at risk on my investments, or that I need to put her in the tittle if the house.

Worse case: if we get divorced, she will get half of the house which she didn’t pay a dime for.

To me this just doesn’t sound right. Has anybody experienced something like this?

Joshua Feit · Answer

Public service announcement:

Title has one 'T' :-)

In Georgia, you don't have to have your spouse on a title with you. I can own property that my wife doesn't own. But I can tell you that my wife is my business partner and my life partner. Everything we own we are glad to own together. This approach doesn't work for everybody, but it has worked well for us.

Hope you figure out what works well to build trust for the two of you! Congratulations on your recent marriage.

Cheers,Josh

Account Closed · Answer

My wife and I have just celebrated our 40th anniversary. Divorce was never an option for either of us. That attitude held us together through thick and thin and thinner and even thinner to thick and thicker and even thicker. I couldn't have done it without her. She didn't start out with the intent of being my business partner but over time as we grew closer she saw the wisdom of us going in the same direction. We've always shared the same checking account, the same investments, don't believe in prenups and are very happy together (she even agrees with those statements. ;-) I've always had the attitude that I can always make back my wealth but I can't afford to lose a good wife.

Account Closed · Answer

Does your wife know you have this problem? "Worse case: if we get divorced, she will get half of the house which she didn’t pay a dime for."

You are planning for failure, start planning for success instead.

Alex Doce · Answer

The Florida Constitution requires that both spouses sign deeds and mortgages of homestead property, even if the title to the property is in one spouse alone.

Since you are buying a residence that will be owner occupied, and are seeking a mortgage to finance the purchase of that property, then your wife will be involved. Florida constitution provides that a married person may not encumber or alienatet (sell) his homestead property without the joinder of his/her spouse. Therefore, although you can buy the property in just your name, since the deed is recorded before the mortgage, and you are married, your spouse will have to join you in signing the mortgage INSTRUMENT, not to be confused with the mortgage loan. Even if you are getting the loan only in your name, which you can, and you are the only one signing the promissory note, the mortgage securing that promissory note, if it is a mortgage on your homestead, will have to also be signed by your wife. You can buy property for cash and not involve your wife. But if that property becomes your homestead, you cannot sell it or mortgage it without your wife's joinder in such action. She does not have to be on the deed. But she will have to execute the mortgage for you to use homestead property as collateral for a loan.

I am a Florida based lender, and have been originating residential loans for 30+ years. I look forward to connecting with you.

For references, Google my name.

Odie Ayaga · Answer

I want to preface this by saying that I LOVE that you and your wife have been so successful in marriage for so long. However, I think there's a BIG difference when you're talking about the potential impacts of divorce with personal interests versus business interests. Your business interests may even expand beyond just you and your spouse and I would not be comfortable entering into a business relationship with a party in which I didn't know what the outcome would be if the party were a couple and I didn't know clearly what would happen if they separated. I know that my attorney hit me with a lot of questions I hadn't thought of when setting up our LLC with my business partner and I feel that EVERYONE looking to start a business should have that experience. When setting up your LLC it shouldn't matter whether your business partner is a friend, spouse, or stranger, it's not a personal decision, it's a business decision.

Odie Ayaga · Answer

I'm not looking to disagree with either of you, but I will say that a lot of people come on these forums asking questions about LLC's to protect them from outside interests. One of the things I've discovered is not enough people think about protecting from INSIDE interests. I think it's one thing to be a couple who is just trying to live the dream life together, but once you tie business interests into it you should DEFINITELY be asking the hard questions such as what happens in divorce, death, etc. That's not planning for failure that's planning for the unexpected.

Also, some say planning for failure, others say risk management. Some say planning for success, others say being naive. I think there's two sides to many coins.

Account Closed · Answer

Your Comment: "should DEFINITELY be asking the hard questions such as what happens in divorce, death"

We all die, we don't all divorce. Of course you plan for inheritance planning, but one is foolish to plan for divorce. It sets a bad expectation and causes insecurity in your spouse. Sorry, that's human nature and no set of laws changes that.

Account Closed · Answer

Your Comment: "But I can tell you that my wife is my business partner and my life partner. Everything we own we are glad to own together."

Dittos.

Riggies B tang · Answer

You might consider putting all of your investment properties under a company which you own 100%. but ask a real estate attorney for a piece of professional advice. Include your spouse in this meeting with the attorney. :)  good luck!

Allen Lopez · Answer

@Mike M.

To answer your question, we did get a prenup, but it states that if we were to get divorced, anything that has both of our names will be split in half.

I don’t know if she would do that. I wouldn’t think you. But then again it’s better to hope for the best and prepare for the worse

Does my wife need to be on the tittle?

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