Co-ownership not married

[sudofdisk]

What is the name of your state (only U.S. law)? Colorado


My girlfriend and I live in the house I purchased 2 years ago. We want to buy a joint property and turn mine into a rental. The mortgage on the new home will be entirely in her name. I am repaying her for half the down payment and we will split all costs associated with the new house. She will pay me $x in order to gain an interest in the first house.

What we would like eventually (after we do some math to figure out how to settle up) is the following:

Joint title on both properties.
First home mortgage in my name.
Second mortgage in her name.

We also think this is a good long term retirement plan and intend to add more investment homes in the future. I realize this is complicated and we need to pay for professional assistance (a lawyer and an accountant) but I was wondering if I could have someone who knows paint me a general picture of ways of accomplishing this so I can learn what questions I need to ask.

Thanks.

 

[Silverplum]

What is the name of your state (only U.S. law)? Colorado


My girlfriend and I live in the house I purchased 2 years ago. We want to buy a joint property and turn mine into a rental. The mortgage on the new home will be entirely in her name. I am repaying her for half the down payment and we will split all costs associated with the new house. She will pay me $x in order to gain an interest in the first house.

What we would like eventually (after we do some math to figure out how to settle up) is the following:

Joint title on both properties.
First home mortgage in my name.
Second mortgage in her name.

We also think this is a good long term retirement plan and intend to add more investment homes in the future. I realize this is complicated and we need to pay for professional assistance (a lawyer and an accountant) but I was wondering if I could have someone who knows paint me a general picture of ways of accomplishing this so I can learn what questions I need to ask.

Thanks.

http://www.state.co.us/gov_dir/leg_dir/olls/PDF/COMMON LAW MARRIAGE.pdf

 

[sudofdisk]

http://www.state.co.us/gov_dir/leg_dir/olls/PDF/COMMON LAW MARRIAGE.pdf

Negative, we don't desire to get married and common law married is married.

 

[Silverplum]

Negative, we don't desire to get married and common law married is married.

Then it would behoove you to READ the info I *bothered* to link for you.

 

[tranquility]

Joint title on both properties.
First home mortgage in my name.
Second mortgage in her name.

Um...no. Not gonna help you screw up your life. Speak to an attorney. While this is less bad then joint title/sole mortgage on one property (Because you will each have a gun to the other's head rather than just one.), it is STILL bad. Don't do it. Put it out of your mind. See an attorney and see what he says first.

 

[sudofdisk]

Then it would behoove you to READ the info I *bothered* to link for you.

I understand common law marriage in the state of Colorado. Perhaps I am slow because it appeared to me that you were proposing that as a soloution to my problem. Am I misunderstanding your message?

 

[Silverplum]

I understand common law marriage in the state of Colorado. Perhaps I am slow because it appeared to me that you were proposing that as a soloution to my problem. Am I misunderstanding your message?

Yes, you are misunderstanding.

No doubt because you didn't read.

 

[Silverplum]

Um...no. Not gonna help you screw up your life. Speak to an attorney. While this is less bad then joint title/sole mortgage on one property (Because you will each have a gun to the other's head rather than just one.), it is STILL bad. Don't do it. Put it out of your mind. See an attorney and see what he says first.

Or, see what SHE says.

Other than that, I totally agree with you.

 

[sudofdisk]

Yes, you are misunderstanding.

No doubt because you didn't read.

I did read (really I did). Please be more specific.

 

[tranquility]

Or, see what SHE says.

Other than that, I totally agree with you.

Until we get a gender-neutral pronoun, I think my Engrish was correct.

 

[Silverplum]

I did read (really I did). Please be more specific.

It's a two-page document. I'm going to express myself now, get ready:

Near the end, on page 2.

"What should couples keep in mind?
If challenged, a couple may have to prove the existence of their common law marriage. The
couple may use some or all of the following evidence, or other similar evidence, to
demonstrate their agreement to have a marital relationship:
...The couple owns property as joint tenants."

And, "If a couple married by common law wishes to end their marriage, they must get divorced in
the same manner as a couple married in a ceremony. The divorce will address all the issues
involved in any divorce, including parental responsibility for their children, parenting time
with their children, child support, maintenance, and property division."

My point? You may end up "married," after all. Especially when it comes to property division.

If you aren't willing to get married, you absolutely shouldn't be buying properties together -- at least, not without some Serious Lawyering happening.

 

[Zigner]

Negative, we don't desire to get married and common law married is married.

These two statements are at odds. You don't want to get married, yet you are willing to be married. It don't work that way.

 

[LdiJ]

What is the name of your state (only U.S. law)? Colorado


My girlfriend and I live in the house I purchased 2 years ago. We want to buy a joint property and turn mine into a rental. The mortgage on the new home will be entirely in her name. I am repaying her for half the down payment and we will split all costs associated with the new house. She will pay me $x in order to gain an interest in the first house.

What we would like eventually (after we do some math to figure out how to settle up) is the following:

Joint title on both properties.
First home mortgage in my name.
Second mortgage in her name.

We also think this is a good long term retirement plan and intend to add more investment homes in the future. I realize this is complicated and we need to pay for professional assistance (a lawyer and an accountant) but I was wondering if I could have someone who knows paint me a general picture of ways of accomplishing this so I can learn what questions I need to ask.

Thanks.

What you are contemplating doing is fraught with peril...seriously. If everything falls apart between the two of you, you could be stuck with a seriously unfair or unbalanced situation as far as assets and debts are concerned, and both of you could have money invested in real estate that you either have no legal ownership in, or cannot afford to pay by yourselves.

What you need to think about is the absolute worst case scenario...where you would split up and hate each other for life, but would put you in a business situation where you could part with reasonable financial civility.

In other words, if you are really going to do this then you need a formal business entity, with a formal operating agreement, with specific provisions spelled out if the two of you are no longer able to work together. That means that both of you need to be represented by separate attorneys when setting up your business entity...and that all property needs to belong to your business entity...with each of you (if personal guarantees are required) being equally responsible for all mortgages.

In other words, a true legal partnership or corporation. Otherwise, you need to get married so that you have the protection of a legal marriage to handle the assets and debts.

 

[latigo]

What is the name of your state (only U.S. law)? Colorado

My girlfriend and I live in the house I purchased 2 years ago. We want to buy a joint property and turn mine into a rental. The mortgage on the new home will be entirely in her name. I am repaying her for half the down payment and we will split all costs associated with the new house. She will pay me $x in order to gain an interest in the first house.

What we would like eventually (after we do some math to figure out how to settle up) is the following:

Joint title on both properties.
First home mortgage in my name.
Second mortgage in her name.

We also think this is a good long term retirement plan and intend to add more investment homes in the future. I realize this is complicated and we need to pay for professional assistance (a lawyer and an accountant) but I was wondering if I could have someone who knows paint me a general picture of ways of accomplishing this so I can learn what questions I need to ask.

Thanks.

DO NOT create an estate in cotenancy! I repeat, DO NOT create an estate in cotenancy!!!! Which is precisely your intention.

If you persist in going ahead as foolishly planned, short of matrimony, at least consult with an attorney experienced in real property law regarding first entering into a “Co- Tenancy Agreement” (TCA)!

 

[sudofdisk]

It's a two-page document. I'm going to express myself now, get ready:

Near the end, on page 2.

"What should couples keep in mind?
If challenged, a couple may have to prove the existence of their common law marriage. The
couple may use some or all of the following evidence, or other similar evidence, to
demonstrate their agreement to have a marital relationship:
...The couple owns property as joint tenants."

And, "If a couple married by common law wishes to end their marriage, they must get divorced in
the same manner as a couple married in a ceremony. The divorce will address all the issues
involved in any divorce, including parental responsibility for their children, parenting time
with their children, child support, maintenance, and property division."

My point? You may end up "married," after all. Especially when it comes to property division.

If you aren't willing to get married, you absolutely shouldn't be buying properties together -- at least, not without some Serious Lawyering happening.

Yes, I read that. Particularly this part: "If challenged, a couple may have to prove the existence of their common law marriage." That can be one of the criteria should a couple wish to prove they are married by common law but it is my understanding that in Colorado you must hold yourself out to be a married couple in several demonstrable ways to be married by common law. As I understand it you can't accidentally find yourself married. If you don't want to be married, you aren't by common law just because you buy a house together. Do you have information that says otherwise?