Joint Owned Property
My C.L. and I own land together and we are currently building a house on it. The title is in both our names. I might need to file for bankruptcy and I am curious about what will happen to the property. It is owned free and clear. There are a few debts related to the building of the house. We have been to the banks to try and get a mortgage but we have been turned down because of my credit rating and we can`t get a mortgage in my partner`s name because my name is also on the title and the banks have to include me. If it is in my partner`s name, we could possibly get a mortgage and pay our debts but if we can`t, then I may have to file. Can the title be put in my partner`s name with no consequences? And how long would it have to be in my partner`s name before it is not included in the bankruptcy?
Posted from: Manitoba
There is nothing wrong with taking your name off of the title for the property as long as your spouse pays you the fair value of your 50% interest. For exampl, if the property is worth $20,000 your spouse will need to pay you $10,000 for your share. If they do not and you subsequently file for bankruptcy, the Court may decide to reverse the title change and seize your 50% interest for your creditors.
I think you should be speaking to a lawyer – not necessarily a free website…