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I own a house and am getting divorce. is it O.K. to have step daughter who receives survivors benefits
co own house with wife ?
Anonymous2 views3 answers
I own a home, the home and the home loan are in my name alone. I am getting divorce, I have
substantial equity in the home and some mortgage still left. I would like to refinance the existing
mortgage for 30 years and get cash out. I would like the refinancing or new loan in both my wife
and step daughter name, meaning they will have the new mortgage in their name. My step daughter
is 21 year old and receives Social Security Survivors Benefits and she will continue to receive these benefits for life. I am thinking of doing it for two reasons one is that with her Survivor Benefit Income my wife will qualify for the mortgage and the second her being owner will reduce the property taxes substantially. Am I doing the right thing ? is there any down side that I do not know ? please tell me.
If you are taking the mortgage out of your name and putting it in the name of others, that is not a refinance, it is a sale, or at least a gift. Depending on the value of the house, this could expose you to some unwanted tax complications. It is impossible to be more precise without more detail.
You mention you are getting a divorce. Have you discussed this with your attorney? They may want to consult with an estate planner as well. This is not DIY territory. If this transfer goes awry, it could cost you significantly.
This kind of transaction is very complicated due to the intersection of family law, social security law, tax law, estate planning, and real estate.
You really need to sit down with a lawyer; if you don't do this correctly, you could lose tens of thousands of dollars or more.
