My fiance and I agreed to buy a house that would cost more than what we expected to pay, but we both liked it.
We agreed that I would make the mortgage payments and she would pay the taxes every year. When we bought the house, we decided to pay the taxes separately from the mortgage.
As time went by, I asked her if she was putting money aside every month so that when the tax bill came in, she would have enough money to pay the taxes. Her response was, “Don’t worry, I will have money to pay the taxes.”
But when it came time to pay taxes, she didn’t put any money aside. She basically told me that since I’m the man, I had to pay all the bills.
It caused major problems in our relationship, even to the point where she moved away for a year. We got back together with the agreement that I would pay the taxes and mortgage. We have lived in the house for four years now and to this day she has not paid anything, not even a utility bill.
Is she entitled to 50% of the proceeds if we sell the house?
She has her own cleaning company and can help pay the bills. I have proof that she didn’t give me any money to pay the bills.
The house is outside Chicago.
Frustrated
‘The big move‘ is a MarketWatch column discussing the ins and outs of real estate, from searching for a new home to applying for a mortgage.
Do you have a question about buying or selling a home? Do you want to know where your next step should be? Email Aarthi Swaminathan at TheBigMove@marketwatch.com.
Dear frustrated,
In a relationship, trust is everything. Whether you trust your partner to remain faithful to you, to keep an agreement, even a verbal agreement about how you will pay for the house. It lays the foundation for what will happen when you get married – if you decide to get married.
So before you think about what happens to the house, you might want to think about whether she’s telling you that you’re the “man” who has to pay. all the bills are a red flag, especially since she is a business owner and has her own income.
Being taken advantage of isn’t a nice feeling when you’re dating, but it becomes a more complicated problem when you’re married with children and dealing with higher bills. The takeaway: Always make sure you get everything in writing. Verbal agreements are rarely honored in the heat of a divorce.
“Generally—and in a perfect world—you and your fiancé would have entered into a written agreement about how the mortgage, taxes, insurance, and repairs on this house would be paid. for you bought the house,” Karen Covy, a Chicago-based divorce coach, consultant and attorney, told MarketWatch. “If you have a written agreement, everything should be clear and enforceable.”
Marital vs. separate ownership
If her name is on the title, you jointly own the property, but there may be room for maneuver if you are not married. “She’s going to say buying the house was a 50/50 deal and you’re going to say that’s not true,” Covy said, “so you’re either going to have to make a deal with her, that is, pay her . something, or fight her in court to prove your case.
It becomes even more problematic when you are married. If you are married, your new wife will have a stronger claim to half the profit if you sell the house, assuming it is considered marital property because both your names are on the deed or because the property is in one or be mixed in some other way (for example, if you paid the mortgage through a joint account).
“Illinois is an equitable state. This means that the marital assets are divided fairly,” says Covy.
“Premarital property is property acquired by a couple before they are married,” according to Kiswani Law, which has offices in Chicago and Hickory Hills, Illinois. “In Illinois, premarital assets are not subject to division upon divorce. Instead, each spouse has the right to keep his premarital assets separate from the marital property community.”
Because you bought the house before you both got married, the house is treated as a separate asset and you are seen as two strangers buying a house together. If you both separate, you will have to go through a division procedure. The court will decide how the assets will be divided based on your financial contribution.
After you get married, that asset becomes marital property, meaning it is divided between the two of you, which can get tricky.
“She’s going to say the house is marital property because it was purchased in anticipation of the marriage, and you made payments on the house while you were married, assuming that’s true,” Covy said. “It’s up to you and your divorce attorney to fight over whether the house was marital and how much of the proceeds she is entitled to.”
This debacle gives you a reason — not that you need one — to sign a prenuptial agreement that spells out each individual’s responsibilities for you’re getting married. Without a prenup, it’s too late once you sign the prenup.
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