How can I sell my husband my house?

[Lisa Voss]

Jurisdiction

North Carolina

I bought a house in March of this year. Everything was complete except closing. I got married on the 20th of March and closed on the house on the 23 rd. My husband's name is not on the loan or on the deed. I would like to have his name on both. Do I need to sell him half or just put his name on the deed? I want him responsible for half the loan if his name is going to be on the deed. I am having some medical issues and may need to go stay with my brother for awhile. I need to know what I need to do at this point. I am on SSDI, but I had been working a part time job.

 

[Zigner]

I bought a house in March of this year. Everything was complete except closing. I got married on the 20th of March and closed on the house on the 23 rd. My husband's name is not on the loan or on the deed. I would like to have his name on both. Do I need to sell him half or just put his name on the deed? I want him responsible for half the loan if his name is going to be on the deed. I am having some medical issues and may need to go stay with my brother for awhile. I need to know what I need to do at this point. I am on SSDI, but I had been working a part time job.

Any "sale" or other change in the ownership of your house may trigger a "due on sale" type of clause with your lender. The most straight-forward way to handle this would be to re-fi and include your husband.

 

[adjusterjack]

Given Zigner's comment I suggest you thoroughly and carefully read your loan contract. Many mortgages do not activate a due on sale clause for a transfer between spouses.

 

[zddoodah]

My husband's name is not on the loan or on the deed. I would like to have his name on both.

Why?

Do I need to sell him half

No.

or just put his name on the deed?

That doesn't even make sense. You could sign and file a new deed by which you transfer title from yourself to the two of you. Before you do that, however, you should review your mortgage and loan agreement to be sure that such a transfer would not trigger an acceleration clause.

I want him responsible for half the loan if his name is going to be on the deed.

Then you should discuss that with the mortgage lender. Assuming he's willing, I'm sure the lender would be happy to have someone else on the hook for the loan.

 

[army judge]

I bought a house in March of this year. Everything was complete except closing. I got married on the 20th of March and closed on the house on the 23 rd. My husband's name is not on the loan or on the deed. I would like to have his name on both.

Perhaps the following comments you'll find informative.
I hope they will offer you path to achieving what you desire.

The good news is that your husband's name may not be on the deed (or the mortgage), but the state legislators of NC have created some laws that might already insure BOTH of you are protected.

NC is NOT a community property state.
NC has created legislation that seems to protect both spouses.


The definition of marital property is found in section 50-20(b)(1) of the North Carolina General Statutes: G.S. 50-20 — all real and personal property acquired by either spouse during the course of the marriage and before the date of separation, and "presently owned," except property determined to be separate property in accordance with the statute.

What does all that mean in English.
I hope the following commentary helps:

The statutory definition of marital property now contains a presumption that all property acquired after the date of marriage and before separation is marital (except separate property by definition); the presumption is rebuttable by a preponderance of the evidence. This presumption changed prior case law.

Thanks to the laws of your state, your husband may not be on your deed, BUT he has an ownership interest in ALL property acquired after the marriage.
You acquired the property three days after your marriage.
Your husband is in your heart, (as you are also in his heart), but BOTH of you own have a ownership interest in the property.

If I were dealing with a serious medical issue, I'd work with my medical providers to fully recover from my medical malady, prepare my will, and relax in knowing that legally al is well in your lives.

May the good Lord bless and comfort you as do what many others are attempting, to restore your health to a state of wellness.

"Presently owned," with respect to time, refers to ownership or interest in the property on the date of separation (or even just before such date, if one spouse has unjustifiably seized possession of marital property without accounting for it). "Presently owned," with respect to right, refers to the extent or basis for claiming an interest in the property, notwithstanding the present possession, title holder or claim of interest by others.


The definition of separate property is found in section 50-20(b)(2) of the North Carolina General Statutes: G.S. 50-20 — all real and personal property acquired before marriage, or property acquired during the marriage by bequest, devise, descent or gift. Professional and business licenses which would terminate on transfer are expressly defined to be separate property, as is any increase in value to separate property and income derived from such property.

 

[Tax Counsel]

I disagree with ArmyJudge's conclusion that your husband has any present ownership interest in the house. He doesn't. ArmyJudge is in a community property state and community property law functions significantly different than states that derive their property law from English law (community property law derives from Spanish Civil Law). Under community property law, a spouse gets a present property interest in most property obtained by either spouse during the marriage, known as a community property interest.

But under English property law, that is not the case. Non community property law states provide that a spouse may get a marital interest in property that his/her spouse gets during the marriage, as ArmyJudge noted for NC. But that marital interest doesn't give the spouse any present ownership interest in the property.

Put more plainly, unlike in community property states, your husband doesn't own any part of that house you bought. You could sell it tomorrow and not need his consent to do it. What the marital interest rules do is give him an interest in it at the time of divorce (if that ever happens). In short it's a rule applied in divorce proceedings. That is why the rule ArmyJudge quoted is in NC's statutes for divorce, not property law.

You can easily give him a share of the property via a quit claim deed. But you'll need for him and the lender to agree to add him to the mortgage (or refinance with your husband as co-borrower) for him to be legally liable for the mortgage payments. You won't want to give him that quit claim deed until he is also liable for that mortgage, too. Typically, you'd do that at the same time — he signs off on the mortgage and you sign off on the deed. I suggest you see a real estate attorney to get it right.

 

[flyingron]

Additionally, Garn-St.Germain will block a due on sale close when it involves adding a spouse to the deed. Likewise, removal from the deed due to divorce is also protected.

I'm not seeing how divorce enters into the poster's original problem.

 

[Tax Counsel]

I'm not seeing how divorce enters into the poster's original problem.

It doesn't. But it is important to explaining what a marital interest in property is since that was brought up by ArmyJudge.