QUESTION
I am married and I am the sole owner of our home. Should I change the title to Tenancy by the Entireties?
Asked on Nov 06th, 2013 on Residential Real Estate - Virginia
More details to this question:
We live in Virginia. Shortly before getting married, I bought a house using my own down payment funds, financing, etc. I currently hold title as Sole Owner. I am now trying to decide whether to add my wife to the title and hold it as Tenancy by the Entirety (TBE), or continue to remain Sole Owner. I continue to make the house payments on my own (from an account in my name only - does that make a difference?) I know about the limit of liability under if TBE (i.e. creditor or plaintiff suing one spouse cannot put lien on the home, or force a partition). But does TBE convey advantages to my spouse that she does not already have entitlement to? Are there any disadvantages to TBE for her (in case of my death), or for us? What factors should we consider before getting the title changed to be held as TBE, or not?
1 ANSWER
For probate purposes and transfer purposes, it makes a lot of sense to change the title to T/E, ROS. BUT, if your marriage ever goes on the rocks, you'll wish you'd left it alone. There are no real disadvantages to her. Property owned before a marriage is considered "separate" and not subject to division in a divorce, unless you re-title it, or unless it becomes "commingled" (where both of you have demonstrably made contributions to the property.-long story). If you don't re-title it, you can leave it to her in your will, which can be changed if the marriage goes south. Either way, whether she gets it by survivorship deed or through your will, it's easy to sell in Virginia after your death so there are no disadvantages to her from a probate standpoint. Of course, sometimes momma wants her name on the deed...good luck explaining why you don't want to do that. :)
Answered on Nov 07th, 2013 at 4:12 PM