I’m Still on the Deed of My Ex-wife’s House, but Our Divorce Decree Says She Gets the Property. Am I Sitting on a Golden Goose?
I am wondering if I am exposed or sitting on a golden goose. I am in my second marriage and own a house with my wife. We are considering doing some real-estate investments. I regularly get calls from real-estate companies in my former state of New Jersey to remind me that I am still on the deed of the house my ex-wife lives in.
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If she were to fall on hard times and was unable to continue paying the mortgage, what would my exposure be to this home? If she were to pass away, could her daughters inherit it? Conversely, if I wanted to get my name off of the deed could I leverage my "ownership" to demand an equitable return on the investment?
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"As to whether or not that claim would have teeth, one would need to know if that post-divorce agreement was properly executed under state law and whether or not it constitutes a proper modification, addendum or standalone contract as it relates to the initial divorce agreement," says Alan Feigenbaum, family-law attorney at Blank Rome LLP in New York.
"If title is held in another manner, for example tenants in common, and each party has an undivided half interest, the ex-wife could not bequeath the ex-husband's one-half interest unilaterally to her daughters. But again, the post-divorce agreement may present the daughters with a claim in this instance too," he adds.
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As for your potential leverage: "This would be quite difficult given the post-divorce agreement that was signed," Feigenbaum adds. "One would need to know if the initial agreement provided that the ex-wife had the right to sell the home and retain all the proceeds. Regardless, the post-divorce agreement, assuming it's enforceable, likely makes it materially more difficult to demand the equitable return."
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"‘I Was Devastated by Her Infidelity’: I’m Still on the Deed of My Ex-wife’s House, but Our Divorce Decree Says She Gets the Property. Am I Sitting on a Golden Goose?" by Quentin Fottrell was published in MarketWatch on March 27, 2024.