Purchasing Property Without Your Spouse: The Pros and Cons

by | Jul 11, 2018 | Articles

The Benefits of Purchasing Property Without Your Spouse

Purchasing property with only one name on the property deed is not always a bad idea. Here are a few reasons why it can be a good move. If you are purchasing a house with money that you either earned or inherited prior to the marriage, it may make sense to keep your spouse off the deed, title, and mortgage. Therefore, if you wish to sell or mortgage the property it will be solely in your name and there will be no complications.

If your spouse has bad credit and few assets and you have great credit and more assets, it may be easier getting a mortgage at a better rate if only your name is on the loan and deed. Additionally, if the property is only in your name, when you are gone you can bequeath it to whomever you want to in your will.

Another benefit to purchasing a house without your spouse is keeping the property from creditors. If your spouse has defaulted on any type of loan that was taken out prior to the meeting, creditors would not be able to go after property that is only in your name.

The Downsides to Purchasing Property Without Your Spouse

Purchasing PropertyIf you decided to purchase a condo or live in a neighborhood with a Homeowners Association, some HOAs and condo managers will only talk to the person whose name is on the deed. You may have to jump through hoops If you wanted your spouse to have the ability to speak on your behalf when contacting the HOA or condo manager in these circumstances.

If you and your spouse planned on growing your financial future together, such as buying more property or starting a business together, it may be a smart idea to own substantial assets together. When looking for funding to start these new ventures, it will make you both look more creditworthy to possible investors.

The Possibility of Needing a Quitclaim Deed

If you do decide to forego your spouse’s name on the deed, it is important to note that you will likely need your spouse’s consent. Many mortgage lenders require your spouse to sign a quitclaim deed disclaiming any interest in the property. This is how lenders protect themselves and the borrower from future disputes. It is likely that you will not be able to secretly purchase a home behind your spouse’s back because of this.

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