5 Things to know before Adding a Spouse to a Deed

So your spouse moved into your home and you want to add her to the deed? A lot of people impulsively decide to add their spouse to the deed. So, if something unexpected happens, she can claim the house or your assets.

This is a great idea if you really trust your spouse and have other more valuable assets under your name. But this asset is the only valuable thing you have, then you should be careful before adding your spouse to the deed.

Here are 5 things to know before adding a spouse to a deed.

1) Are you purchasing the asset with your own money?

If you are purchasing a house or a property with your own money or money that you inherited from your parents, then it would not be a great idea to add your spouse to a deed. In this case, you want to be the sole owner of the property. There is no point in adding your spouse to the deed. You can sell, rent it out or live in the property as you wish. Adding your spouse to a deed only makes sense if you both are going to contribute to the mortgage payments. 

2) Do you really trust your spouse?

Even if your spouse is willing to contribute to the mortgage payments, you should perform a thorough background check on their credit history. You should think twice If you find a track record suggesting unethical practices performed in the past by your spouse.

3) You both work well as a team

If you both are exclusive to each other and work well as a team, then adding your spouse to a deed can actually benefit you. Now you are not only emotionally bonded with a person you trust but also financially. This can provide fuel to your relationship and you both can go onto achieve great things collectively. There are many examples of such couples who were able to maintain a lifelong emotional and financial relationship.

4) What if you want to sell your assets?

If you add your spouse to a deed or a mortgage, you cannot sell the asset to whomsoever you want. If will have to take legal permission from the shareholder of your asset( ie; your spouse). But, you are allowed to sell your share to anyone you want. Lawyer’s deal with such conflicts every day and they tell people to have clear communication about this matter before marriage.

5) You need permission from the lender

Adding a spouse to a deed does need you to perform some legal formalities. The mortgage lender allows you to add any person to the deed. You can also transfer the entire property to another person even if the loan is due. In this case, the mortgage lender will invoke a “Due-on-Sale Clause“. Which means you are required to pay the full mortgage before adding a spouse to a deed.

Conclusion

The above 5 points are the only some legal factors that you need to consider before adding a spouse to a deed. You have to ask yourself whether you love and trust your spouse or not.