Legal Question in Real Estate Law in Massachusetts
My parents own the land and deed to a house that my husband built. The deed to the house remains in their name. My name is on the mortgage with their names but my husband's name is not on any papers connected to the house. My parents gave us $200,000 to build the house as early inhereitance money to me and my husband contributed $26,000 of his money. Eventually the house was going to be deeded to us through my parents will as an inheritance to me. But we are divorcing now. My husband is saying he is going to sue my parents for $200,000 saying that that is the amount rendered for his building services. Will my parents have to pay him this amount? Is there any valilidity to his claim when there was no written contract? The cost of his building services were never discussed until we were having marital problems and he wanted to use the house as collertoral for his own building business. Does he have any rights to this property if we divorce? The property is located on Cape Cod and is presently being used as a rental property for us to generate income for us.
3 Answers from Attorneys
This is not easy.
The first issue is if his work was a gift or not;
If not a gift, what is the reasonable value of his services.
For this amount, your parents need to retain an attorney to walk them through this process.
If you have any questions contact me at 978 749.3606
Many threshold questions must be answered to adequately analyze your husband's rights, and your (and your parents') possible defenses and defense startegies in this unfortunate matter.
Issues of "gift" law arise (as earlier indicated); isues of asset protection (homestead protection works well to prvent creditor forced sales but only to owner occupied homes. Visit your county Registry of Deeds to learn more. Consider acting proactively to avail yourselves of thia protection. Note: Many other asset protecting strategies are also available. See your knowlegeable attorney.); issues of the "value" of his contributed services (Not necessarily as he values them. Query: If he was providing building services to the project, was he properly licensed, insured, and bonded in the Commonwealth, County, Town/City so as to be able to charge as a building contractor for these "services"? Have your legal team check this. Should any services provided be valued [if need be] at common laborer wages? - All food for legal thought.)
Have you considered "cashing him out" (i.e. returning his original cash contribution)? Did he properly file mechanics liens for any contribution of goods or services he now alleges are creditable to him? If yes, aer they still operable?
Do you or you parents have any claims or causes against him as possible "off-sets"?
Consider: If the property is not presently in your marital estate, can a family and probate order properly attach or reach it??
Clearly, just from this brief "threshold" analysis, it should be evident that you need to seek experienced legal counsel.
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How long ago was the construction completed? If more than seven years, he may have zero claims no matter what under the statute of repose (unclear without more information). Also, without a written contract or other evidence he expected to be compensated for his work (until the divorce) it is a significant stretch on his part to be claiming this, based on initial impressions from your description.
I am experienced in these matters. Feel free to contact me directly to discuss.