We bought a home (unmarried) as Tenants in Common (90% myself, 10% him). What happens if there is no prenup and we divorce? Do I retain 90% ownership?Also, what happens if I pass away and designate the beneficiary thru a will to my mother and husband 50/50?
Is there something I should do before getting married to protect my interests?We live in California.
After marriage, the marital community acquires a pro tanto interest in the market appreciation and full interest in the principle reduction equity - if any. The 90/10 ownership factors are used to calculate the pro tanto interest (Marriage of Moore/Marsden) at time of divorce. (Its a bit complicated - you need to consult a family law attorney for more details) In very simple terms - you keep 90% of the equity as it were at the date of marriage, and 90% of the increase in market value after marriage, and 1/2 of the equity build up attributable to principle reduction during marriage (assuming that the mortgage payments were made with community funds). As a TIC, you can give away, by will or trust, your 90% interest to whomever and however you want.
Richard A. Rodgers, Esq.
200 N. Westlake Blvd. Ste 201
Westlake Village, CA 91362
As stated in the AVVO.COM Terms and Conditions of Use, this answer is not intended as legal advice, and no attorney-client relationship or privilige is created by this response.
Please keep in mind that if you decide to leave instruction regarding the distribution of the house in a Will, that property will likely have to go through Probate to be administered. That could cause some headaches and complications for your husband. Is the intent that should you pass away, your husband retains the right to live in the property even if he is only a 50%-60% owner of the property? I recommend that you sit down with an experienced estate planning attorney to discuss your wishes and concerns.
This does not constitute legal advice nor does it create an attorney-client relationship.
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