Hypothetical: Buying a home when one partner has $$ and the other doesn't...

[NovaTTT 1]

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The boy loves this girl, and wants the girl to feel like she isn't just "Renting" from the boy. Boy also allows for her protection to make sure she can't get "booted" by boy from home.

"Booted" vs "equity" are very different matters. If he wants her to have a financially secure method for leaving if things go south, she should set up a savings account and he can deposit a small amount every month. So can she.

Equity in the home should be the provenance solely of those who pay the mortgage.

If they enter an agreement and she pays an amount toward the mortgage each month, then she would be entitled to an equity share.

If she doesn't, then she is a friendly tenant and shouldn't enjoy the benefits of home equity, other than what Boy is willing to provide.

If it were me, I'd keep the house separate from the relationship. It's better for both regardless of the outcome of the relationship. And if things go well for them in the long run, changes can be made regarding legal ownership of the home.

.02

"Even in a world where perfection is unattainable, there's still a difference between excellence and mediocrity." Gary73

[PLFXpert 0]

Boy and Girl should figure it out together and decide what fits them best.

Having said that, the info given is:

1. "Boy and girl want to buy a place together."
2. "boy has probably 95% of the money"
3. "girl only has stellar credit"

So, they want to buy together and she has no credit problems. Great! Do that.

By they way, I am a little bothered by the addition of "only" in the statement regarding Girl's credit.

Paint me in a corner, but my color comes back.

[happythoughts 0]

That's how I got my house.

A man and woman are living together. They decide to
buy a house together. She puts no money in, he buys it.

They move in. He spends weeks clearing the land and
landscaping the lawn. Planting, fencing. Many improvements
increased the value of the place.

After 6 months, the work is complete. She moves out, calls a lawyer, demands her half.

I bought the place. They split the proceeds on the house. He lost $12K.

I told him that it was an inexpensive learning experience.

The lesson is, all transactions are arms-length.
Everything in writing and agreed upon in advance by all parties.

[squirrel 0]

if your money is separated, so is your love for each other.

________________________________
Where is Darwin when you need him?

[d_squared431 0]

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If girl is doing the housework / shopping / paperwork /gardening ...fuck it, they are parteners...she desrve's to be treated as a partener....Money isn't the only way to "Earn" a house!

Agree that money isn't the only way to "earn" a house but the value of those tasks or others would need to be determined and factored in which would then create a legal contract that either dictates for doing "x" jobs y% of the house equity is awarded or for every time "x" job is done $y is contributed to the home equity.

This creates a tracking hassle and/or a potential legal nightmare for both as claims of breach of contract...
Just not worth all the hassle.

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BUT, iff Boy even has these thoughts going threw his head at this early stage....it must be the wrong Girl! Move on to greener pastures!

This I don't agree with. Any attempt to logically proactively prepare for if things don't work out, means they aren't right for each other?

It's basic disaster recovery/emergency procedures. If you plan for it and know you'll to do, both parties are better off. Chances are if you're ready for it, it's less likely to happen and if it does, it's less traumatic for both.

I mean, I love my main canopy, but that doesn't mean I don't want a plan B.

LMAO....

TPM Sister#130ONTIG#1
I love vodka.I love vodka cause it rhymes with Tuaca~LisaH
You having a clean thought is like billyvance having a clean post.iluvtofly

[1969912 0]

Boy should buy house and rent girl(s).

"Once we got to the point where twenty/something's needed a place on the corner that changed the oil in their cars we were doomed . . ."
-NickDG

[airtwardo 6]

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if your money is separated, so is your love for each other.

YOU never went into a relationship with a hard earned bankroll I'm betting!

~ If you choke a Smurf, what color does it turn? ~

[Shell666 0]

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The boy loves this girl, and wants the girl to feel like she isn't just "Renting" from the boy. Boy also allows for her protection to make sure she can't get "booted" by boy from home.

"Booted" vs "equity" are very different matters. If he wants her to have a financially secure method for leaving if things go south, she should set up a savings account and he can deposit a small amount every month. So can she.

Equity in the home should be the provenance solely of those who pay the mortgage.

If they enter an agreement and she pays an amount toward the mortgage each month, then she would be entitled to an equity share.

If she doesn't, then she is a friendly tenant and shouldn't enjoy the benefits of home equity, other than what Boy is willing to provide.

If it were me, I'd keep the house separate from the relationship. It's better for both regardless of the outcome of the relationship. And if things go well for them in the long run, changes can be made regarding legal ownership of the home.

.02

Advise "said boy" to make sure if he purchases said house on his own accord, without "said girl" being named on said mortgage and paying her part of said mortgage that "said girl" has no right to the house should "said boy" and "said girl" suddenly split.

But, as Amazon said, common law may trump stupidity ... and "said boy" might want to look into that in his state.

Just my 2 Canadian cents ... about 2 of yours so you should really take them at face value.

'Shell

[ridestrong 1]

Have boy and girl already been living together for a while? If not then having both on the new mortgage would be about the worst idea ever. Boy should save himself from a potentially massive headache and buy the house solo. Or marry the girl and quit bitching about it.

*I am not afraid of dying... I am afraid of missing life.*
----Disclaimer: I don't know shit about skydiving.----

[JohnMitchell 14]

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if your money is separated, so is your love for each other.

If you feel that strongly about it you should get married.

I know a lot of married couples have his-and-hers $$, checking accounts, etc. Aren't they in love?

Vskydiver and I have joint everything. It works really well for us.

[happythoughts 0]

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if your money is separated, so is your love for each other.

YOU never went into a relationship with a hard earned bankroll I'm betting!

I have never put money on a bet where I stood to
not gain and, statistically, I have over a 50% chance of losing.

[airtwardo 6]

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if your money is separated, so is your love for each other.

YOU never went into a relationship with a hard earned bankroll I'm betting!

I have never put money on a bet where I stood to
not gain and, statistically, I have over a 50% chance of losing.

And I NEVER bet with anything as trivial as money.

~ If you choke a Smurf, what color does it turn? ~

[ntrprnr 0]

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if your money is separated, so is your love for each other.

YOU never went into a relationship with a hard earned bankroll I'm betting!

THANK you.

_______________
"Why'd you track away at 7,000 feet?"
"Even in freefall, I have commitment issues."

[Andy9o8 0]

You could marry her now, then buy the house together as a married couple. Then, when you get divorced, you just move out while she continues to live there; and since your earning potential far exceeds hers, you get to pay 80% of the value of the house to buy out her interest. And then she keeps living there. What could go wrong?

See post #2.

[AggieDave 6]

In Texas, that house would quickly become less "his" house and more "their" house the longer they lived in it together. That is regardless of who actually pays the bills. That goes with all their stuff that was purchased during the relationship or became communal property, with significant importance to both parties, during the relationship.

People who have never been married end up having to go to a JP's court to get a "divorce" when they split and are unable to split their property like adults.

--"When I die, may I be surrounded by scattered chrome and burning gasoline."

[skymama 35]

Put the mortgage in your name only now. After you can see that she's going to behave herself and treat you well, marry her. Then after she gives you tall, skinny babies, put her name on the deed as an appreciation gift.

She is Da Man, and you better not mess with Da Man,
because she will lay some keepdown on you faster than, well, really fast. ~Billvon

[nigel99 144]

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if your money is separated, so is your love for each other.

While I wouldn't have worded my reply like this I am pretty amazed at the fact that "old fashioned values" don't seem to exist.

Granted my wife and I were both poor when we married (15 years ago) and have built our wealth together - I could not imagine entering a serious long term relationship with such a high level of distrust or planning for failure (pre-nup etc). Now if I ever been divorced I might thing differently. If the trust didn't exist I would rather rent-a-chick

Experienced jumper - someone who has made mistakes more often than I have and lived.

[ntrprnr 0]

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if your money is separated, so is your love for each other.

While I wouldn't have worded my reply like this I am pretty amazed at the fact that "old fashioned values" don't seem to exist.

Granted my wife and I were both poor when we married (15 years ago) and have built our wealth together - I could not imagine entering a serious long term relationship with such a high level of distrust or planning for failure (pre-nup etc). Now if I ever been divorced I might thing differently. If the trust didn't exist I would rather rent-a-chick

It's not about trust in the slightest - Boy trusts Girl completely.

But. Example a: Boy runs a business that continues to get bigger. Boy separates assets, and keeps girl separate. If boy were to ever get sued, he could keep girl out of it.

Example b: Things freaking HAPPEN. I doubt Elin thought Tiger would cheat with Rachel Uchitel. But it happened. I'm glad you and you wife defied the odds. My parents have been married for forty years, and they're still madly in love.

But shit HAPPENS. I've watched countless friends of mine get divorced - after being at their weddings, where each of them were "The happiest people on the planet, and so much in love."

Shit happens. To say that there's no trust is offensive.

BTW - When you and your wife got married and bought a house, I'm sure the credit bureaus weren't anywhere near as massive in everyone's day to day lives. Why should boy AND girl have to pay 2 to 3% higher interest payments simply because "love" told them they should both get the loan together? That's not trust or mistrust - That's practicality.

_______________
"Why'd you track away at 7,000 feet?"
"Even in freefall, I have commitment issues."

[airtwardo 6]

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Shit happens. To say that there's no trust is offensive.

That's absolutely right...It's not like one 'plans' for that contingency, but to not take it into consideration is ridiculously illogical.

~ If you choke a Smurf, what color does it turn? ~

[NewGuy2005 51]

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If girl is doing the housework / shopping / paperwork /gardening ...fuck it, they are parteners...she desrve's to be treated as a partener....Money isn't the only way to "Earn" a house!

BUT, iff Boy even has these thoughts going threw his head at this early stage....it must be the wrong Girl! Move on to greener pastures!

Agreed. Money is only part of it.

Also: Don't take any of the advice you are getting here. See an attorney.

[ntrprnr 0]

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If girl is doing the housework / shopping / paperwork /gardening ...fuck it, they are parteners...she desrve's to be treated as a partener....Money isn't the only way to "Earn" a house!

BUT, iff Boy even has these thoughts going threw his head at this early stage....it must be the wrong Girl! Move on to greener pastures!

Agreed. Money is only part of it.

No offense, but that line of thinking is for people who don't have a lot to protect.

In your world, everyone's on the up and up, nothing bad ever happens, and everything is full of light and happiness and Mr. Rogers?

_______________
"Why'd you track away at 7,000 feet?"
"Even in freefall, I have commitment issues."

[tdog 0]

If you really love her, and you have been with her long enough to know... I am going to say, I rented a room in a house owned by three people. Two good friends and one guy's father. The friends lived in the house, the father brought the good credit.

Over the years, with three refinances, one guy "bought out" the deadbeat a**hole friend... Then his father.

Each buyout required refinancing, but since the market rate was going down on interest, no harm done...

Here is the harm... The deadbeat guy moved out one day without telling anyone. He was paying half of his mortgage, but then stopped paying the day he moved out. Then the partners had to argue equity % and value for buyout and thank god the other guy had enough money to pay the mortgage...

I helped my friend write the contract and negotiate the deal... Thus I learned...

If you are COUNTING on today's interest rate, having to buy out your girlfriend in the future could REQUIRE you to sell the house if you can't afford the new interest rate or your credit is poor in the future... You can't (normally) just remove one person from the loan in the future without a full refi, although I am sure some specialty loans will allow it....


You could, if you really want to share this home together, write a contract that basically says:

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Boy and Girl agree to buy home together.

Boy will bring X dollars to the cash at closing. Girl will bring Y dollars to cash at closing. This ratio will determine equity, and all mortgage interest payments, property taxes, insurance, and required repairs will be charged to the partners in this percentage.

Should either party not make their necessary payments in the previous paragraph, by the due date, the other party may be required to make the payment to avoid foreclosure and late fees. This payment will be in the form of a loan from one party to the other, with 10% annual interest, compounded monthly, due on demand, and any outstanding balance will be paid at sale from sale proceeds, and if the balance is in excess of sale proceeds, the balance owed will be collected thru normal collection channels, including the court system. To protect both parties, a ledger will be kept with canceled checks, bank statements, invoices, etc - and cash transactions will be only accepted if both parties sign the receipt.

There is no implied equity other than cash invested at point of purchase or mutually agreed, in writing, additions to the home after purchase for home improvement projects. A ledger will be kept documenting these purchases with both parties signing the transactions as they occur.

Both parties agree that either party may move out at any time, but this does not cease ownership responsibilities. On the 90th day after moving out, the party that moved out may demand rent from the party who lives in the home. The rent will be calculated by the typical rent for the neighborhood, split to each owner by their share of equity.

Should the majority equity owner wish for the other party to move out, they may make that demand. The other party will have 30 days to move out, and rent payments will be paid by the majority owner, to the partner who moved out, per the previous paragraph, with no 90 day waiting period.

Both parties may move out and the home may be rented to a 3rd party. All rent proceeds will be split by equity ownership.

Neither party may sell their equity in the home to a 3rd party without both parties being in agreement in writing.

Should either party demand the other party to buy their share, the other party will have 90 days to do so. If a reasonable value for the home cannot be agreed upon using alternate means, each party will hire a certified appraiser, the appraiser's values will be averaged to determine the home's value. The buyout amount will be the appraised value, allocated to each equity partner by their equity percentage.

Should either party wish to sell the home, they may do so. If the other equity partner does not wish to buy them out using the procedures listed in the above paragraph, then both parties agree to take the home to the market and hire a mutually agreed upon real estate agent, and take any reasonable purchase offer, without impeding the sale. All sale proceeds will be split to each equity partner, by their percentage of equity.


Both parties, while living in the home, will share utilities and expenses such as food and water, equally. Paying for these utilities and food DOES NOT add equity to the home. Unless agreed in writing, paying for furniture, paint, or other furnishings DOES NOT add equity to home, but remains the property of the individual who made the purchase.

Both parties must always, even after moving out, pay their portion of the mortgage.

[nigel99 144]

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if your money is separated, so is your love for each other.

While I wouldn't have worded my reply like this I am pretty amazed at the fact that "old fashioned values" don't seem to exist.

Granted my wife and I were both poor when we married (15 years ago) and have built our wealth together - I could not imagine entering a serious long term relationship with such a high level of distrust or planning for failure (pre-nup etc). Now if I ever been divorced I might thing differently. If the trust didn't exist I would rather rent-a-chick

It's not about trust in the slightest - Boy trusts Girl completely.

But. Example a: Boy runs a business that continues to get bigger. Boy separates assets, and keeps girl separate. If boy were to ever get sued, he could keep girl out of it.

Example b: Things freaking HAPPEN. I doubt Elin thought Tiger would cheat with Rachel Uchitel. But it happened. I'm glad you and you wife defied the odds. My parents have been married for forty years, and they're still madly in love.

But shit HAPPENS. I've watched countless friends of mine get divorced - after being at their weddings, where each of them were "The happiest people on the planet, and so much in love."

Shit happens. To say that there's no trust is offensive.

BTW - When you and your wife got married and bought a house, I'm sure the credit bureaus weren't anywhere near as massive in everyone's day to day lives. Why should boy AND girl have to pay 2 to 3% higher interest payments simply because "love" told them they should both get the loan together? That's not trust or mistrust - That's practicality.

Really sorry I didn't mean to cause offence. US business culture and suing etc is something that is completely alien to me so I can fully appreciate your example given (in the UK a registered business is a legal entity in its own right and unless you step way outside the law your personal assets are safe)

Agreed on the credit bureaus front as well - there are often very practical reasons why it simply doesn't make sense to throw money away.

PS I said we were married I didn't mention happy and if I ever find the keys I am outa here

Experienced jumper - someone who has made mistakes more often than I have and lived.

[ntrprnr 0]

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PS I said we were married I didn't mention happy and if I ever find the keys I am outa here

Truth comes out.

_______________
"Why'd you track away at 7,000 feet?"
"Even in freefall, I have commitment issues."

[airtwardo 6]

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PS I said we were married I didn't mention happy and if I ever find the keys I am outa here

Truth comes out.

That will teach him to keep an extra handcuff key handy...

~ If you choke a Smurf, what color does it turn? ~