What will happen if I co-purchase a home with another party who has financial problems?

UPDATED: Sep 30, 2022

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What will happen if I co-purchase a home with another party who has financial problems?

We are purchasing a home together but the loan and downpayment is in my name only. However, she wants the deed to have both parties names on it since we both agreed

verbally to split the mortgage cost. That having been said, she had a bankruptcy, has bad credit and IRS/child support/medical bills, which is the reason she was not placed on the mortgage. Would entering into this contract be giving her 50% of the house without any financial obligations? In other words, would her creditors be able to place liens on the property for monies owed since it would become an asset of hers?

Asked on April 7, 2016 under Real Estate Law, Florida


M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

This person's creditors could absolutely place liens on the house. Additionally, they could seize or attach other property that you may jointly own. Bottom line, while you can have a contract outlining her rights and obligations regarding the property, her name should not be on the deed.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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