Legal Question in Real Estate Law in New Hampshire
Protecting transferred property from divorce
We are transferring real property to my son and wife; however, if she were to divorce him, or he suffered a premature death, we do not want her to retain ownership of the property (it has been in my husband's family for generations). What can we do to retain ownership?
2 Answers from Attorneys
Re: Protecting transferred property from divorce
These are somewhat complicated transactions. If you transfer ownership to both of them as joint tenants, then, if one dies, the other owns it in total. If you transfer it to them as tenants in common, she would still have Homestead and martial rights in the property in the event of his death or in the event of a divorce.
Depending upon how strongly you feel about this situation, it may be worth considering transferring the property into a trust with the kids as tenants in possession until such time as you have a greater comfort level regarding their marriage.
Clearly, meeting with an attorney is advisable as any steps to transfer title have both family, tax, and legal consequences.
Re: Protecting transferred property from divorce
This can be dicey. You do not want to do as Joint Tenants since the survivor automatically owns the entire property upon death of the other tenant. You do not want to do at Tenants in Common since the spouse retains certain homestead amd marital rights in her half. A trust would work for the benefit of the children but trusts can be expensive. Perhaps a conditional deed whereby the property reverts back to you if they do get divorced might also work.
This is something you need to pay a lawyer for. It can get very complicated.