Question Asked...
I`m joint owner in a home, the mortgage is joint with my spouse which I became separated in Oct/06. He`s living in the home and has been paying the mortgage. I cannot financially continue paying on the debts I have in my name only as I`m on CPP medical diasbility-$1054 mthly, and considering filing bankrupcty. Is it possible to change title on the property to our daughter (she`s 20) and then file so the home won`t be affected? I have no other assets, but the debt is joint and he can`t qualify on paper to assume my portion of the mortgage. We both would like to hold on to the home until our daughter is finished university and out living on her own. Your reply would be appreciated.
Posted from: Ontario
If there was equity (net value) in the house when you moved out then you can’t simply sign it over to your daughter - you need to be paid the fair value of your equity to keep things legal.
If you simply transferred the house to your daughter and then filed for bankruptcy, the Court might simply reverse the transaction (ie put the house back in your name) or order your daughter to pay an amount equal to your equity.
Whenever houses are involved I suggest you speak to a trustee sooner rather than later - you need to know your options and things need to be done in the correct sequence to avoid trouble for the other members of your family.