So my parents and aunt own a house equally, the same one I live in, it is the principle residence for all of us and I had two scenarios:
A) My parents sign the house/property title to me and I get a mortgage to pay for demolishment and rebuild the house.
B) Get a mortgage to pay for the house/property from them for the price of the house, but not the property (I can’t afford the house and property), so basically purchasing the house/property at below market value and keep it as-is since the money to rebuild is paid to them.
In either scenario, I am trying to do this on my own with my own money and income because I want to protect the family legacy home and keep it in the family. If I let a spouse or common-law help pay the mortgage, they are building their equity and if we divorce (50% divorce rate, so it’s a coin-toss and love is dynamic so you never know) they will be entitled to some of the house.
How do you give them “some” of the house? Only way to split a house is to sell it and split the proceeds from the sale! That’s a no-no, as I’m trying to avoid ever selling it in order to keep the family legacy house in the family.
In either scenario, my parents and aunt would still live in this house and maybe even help with mortgage by paying rent, or it would have 3 floors in a new house and they don’t help but we have renters in the 3rd floor.
The reason my parents and aunt own the house is because their parents owned it and they have passed and the house is in their will to give it to them equally.
I have to acquire the house somehow, because if I don’t the likely scenario is they will sell the house when they pass in order to split the house equally amongst their children (including me) and again that’s a no-no. If they do pass, I would let my siblings and/or cousins live with us, so I’m not trying to steal an inheritance or anything, just trying to preserve this home. It is the greatest home ever and means more than the money.
It will be the matrimonial home when/if I get married, and I was planning on being the sole mortgage payer to protect it from divorce (my spouse would just pay for groceries maybe and maybe some bills and kids stuff) but from my understanding this is not possible?
I know that getting a mortgage puts the house at risk if I default and am forced to sell, which would be at a profit because the property is much more than what I would pay to either obtain the property or to build a new house structure on the lot so I wouldn’t be bankrupt. Either way, if I don’t obtain the property or buy it, it will be sold anyway by my parents and aunt for sure when they pass, so we’re back at square one and the same situation as if I were to default on mortgage and be forced to sell.
The goal is to preserve the house/property and never sell it.
So my question is: How can I protect the house from a divorce?
Is a prenup really the only option? I know I can buy a spouse’s equity out as well but I can’t afford that if the split of assets and what I have to pay is for the property value, not the price that I paid to my parents to acquire it or to build a new house on the lot.
And I’m not sure if someone is willing to sign a prenup like that which basically says if we divorce I keep this house? The main benefit for them is they pay $0 in mortgage so hopefully what they save they have enough to get a mortgage elsewhere. Then I will ask my siblings or cousins or strangers to move in and help pay rent so I don’t default on mortgage payments since I have to pay for food and stuff and child support/alimony.
I’m not trying to be selfish, I just feel it is my duty to protect this legacy home and I know the risks of marriage and even common-law, which is 50% divorce rate. So statistically, I need to prepare no matter what.
Thank you so much for your help and sorry for the long post.
tl;dr: My parents and aunt own a house, I want to acquire it, live in it with a spouse, but protect it from divorce or ever being sold because I want to protect the family legacy home.
Thanks again.
A) My parents sign the house/property title to me and I get a mortgage to pay for demolishment and rebuild the house.
B) Get a mortgage to pay for the house/property from them for the price of the house, but not the property (I can’t afford the house and property), so basically purchasing the house/property at below market value and keep it as-is since the money to rebuild is paid to them.
In either scenario, I am trying to do this on my own with my own money and income because I want to protect the family legacy home and keep it in the family. If I let a spouse or common-law help pay the mortgage, they are building their equity and if we divorce (50% divorce rate, so it’s a coin-toss and love is dynamic so you never know) they will be entitled to some of the house.
How do you give them “some” of the house? Only way to split a house is to sell it and split the proceeds from the sale! That’s a no-no, as I’m trying to avoid ever selling it in order to keep the family legacy house in the family.
In either scenario, my parents and aunt would still live in this house and maybe even help with mortgage by paying rent, or it would have 3 floors in a new house and they don’t help but we have renters in the 3rd floor.
The reason my parents and aunt own the house is because their parents owned it and they have passed and the house is in their will to give it to them equally.
I have to acquire the house somehow, because if I don’t the likely scenario is they will sell the house when they pass in order to split the house equally amongst their children (including me) and again that’s a no-no. If they do pass, I would let my siblings and/or cousins live with us, so I’m not trying to steal an inheritance or anything, just trying to preserve this home. It is the greatest home ever and means more than the money.
It will be the matrimonial home when/if I get married, and I was planning on being the sole mortgage payer to protect it from divorce (my spouse would just pay for groceries maybe and maybe some bills and kids stuff) but from my understanding this is not possible?
I know that getting a mortgage puts the house at risk if I default and am forced to sell, which would be at a profit because the property is much more than what I would pay to either obtain the property or to build a new house structure on the lot so I wouldn’t be bankrupt. Either way, if I don’t obtain the property or buy it, it will be sold anyway by my parents and aunt for sure when they pass, so we’re back at square one and the same situation as if I were to default on mortgage and be forced to sell.
The goal is to preserve the house/property and never sell it.
So my question is: How can I protect the house from a divorce?
Is a prenup really the only option? I know I can buy a spouse’s equity out as well but I can’t afford that if the split of assets and what I have to pay is for the property value, not the price that I paid to my parents to acquire it or to build a new house on the lot.
And I’m not sure if someone is willing to sign a prenup like that which basically says if we divorce I keep this house? The main benefit for them is they pay $0 in mortgage so hopefully what they save they have enough to get a mortgage elsewhere. Then I will ask my siblings or cousins or strangers to move in and help pay rent so I don’t default on mortgage payments since I have to pay for food and stuff and child support/alimony.
I’m not trying to be selfish, I just feel it is my duty to protect this legacy home and I know the risks of marriage and even common-law, which is 50% divorce rate. So statistically, I need to prepare no matter what.
Thank you so much for your help and sorry for the long post.
tl;dr: My parents and aunt own a house, I want to acquire it, live in it with a spouse, but protect it from divorce or ever being sold because I want to protect the family legacy home.
Thanks again.
