Going half on a deal with someone that's married

[Andy R.]

Hello all, After buying my first rental, I was approached by another investor that's interested in purchasing a buy & hold with me. The idea is for each of us to put half of the down payment. Being that she is married, does her husband have to be on the deed and/or mortgage? (We are in Florida and the property will be in Florida) Thanks, Andy

[Susan Booker]

I would consult an attorney to be sure both of your interests are iron clad tight.

What would happen if one dies? What if one wants to sell the interest to a 3rd party? What if one party wants to sell and the other not? Renting to family members? All these questions and more to be talked through.

[James Mc Ree]

No, the spouse does not have to be a part of the agreement at all.  You only need the spouse if you are qualifying for the mortgage with support from the spouse.  Watch out for joint assets.

Be sure you understand the involvement of the spouse with your partner before you agree.  No involvement is fine; however, you could also find the spouse gets interested and is full of opinions and direction, but not part of the deal.  That can be stressful if you are not in agreement.

Consider also what a divorce scenario might look like: Could the spouse end up being your partner?  You might want to request your partner get an agreement in place that the spouse releases all claims to your partnership.  That is a touchy ask, but could prove invaluable to you if the unfortunate occurs (50% of all marriages).

[Jonathan Brobst]

Andy,

I am not sure about Florida laws so I would definitely recommend discussing this with an attorney to find out how best to protect yourself.

I partnered with someone several years ago on a rehab and did so on little more than a handshake and a verbal agreement.  He was family but that was still no excuse.  During the middle of the rehab he mentioned that things were not going well with his spouse and I realized at that time how stupid I was.  Luckily nothing happened and we closed on the property and had no issues.  Kansas (my state) is a common law state where the spouse has to sign on any piece of property sold even though the spouses did not have to sign when the purchase was made.

I personally would not consider doing this without consulting with an attorney to determine the best way to establish a partnership in the venture to protect from life's curve balls.  

Good luck!

[Aryelle Collins]

Andy Ramirez If it's an investment property and not your primary residence then her husband does not have to be on the deed. He would only have to be on the deed if you all were living in the house together. Hope this helps!

[Andy R.]

 @Jonathan Brobst @Aryelle Collins thank you both for the response!

[John Kent]

@Andy R. when you inquire about this situation ask about taking title to the property Tenants In Common instead of the normal Joint Title. Segregating your interest may make you feel better about the venture.

[Andy R.]

@John Kent Can you please elaborate?

[Clare Willa]

Property can be vested as " married as his/ her own sole property" an attorney can assist but does not have to include spouse.

[Andy R.]

Clare Willa Thank you

[John Kent]

@Andy R. it always bothers me when people ask for legal advice on this forum. The responses are usually filled with ill-informed opinions. 

With respect to your question about the mortgage you need to ask the lender who will be lending the money if they will require the husband to be on the deed. Usually, it is only a requirement when income is necessary for qualifying. 

With respect to your title question, this is a legal question that you should ask an attorney. When you do. Ask if it would be in your interest to title the property Tenants In Common instead of Joint Tenancy. If you do your own research and decide it works for you then all you need to do is to inform the title agent or add a line to the contract stating how you would like to take title and the proportions for each party. You may also want to look into holding title in a land trust or llc.

Title segregation is simply splitting ownership interest by percentage.