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newtolaw · Apr 23, 2008, 09:47 PM

The husband owns a house.

The wife pays half of the mortgage but she is not on the title of the house. The house was bought before the marriage.

If the husband puts his wife on the title of the house, is she a half owner of the house?

Since they are married is there a gift tax or any other type of tax involved with that transfer?

Your input and suggestions are highly appreciated.

Thanks.

JudyKayTee · Apr 24, 2008, 05:31 AM

[QUOTE=newtolaw]The husband owns a house.

The wife pays half of the mortgage but she is not on the title of the house. The house was bought before the marriage.

If the husband puts his wife on the title of the house, is she a half owner of the house?

Since they are married is there a gift tax or any other type of tax involved with that transfer?

Your input and suggestions are highly appreciated.

This question goes around all the time - first, before anyone gets added to the Deed the mortgage company has to agree. This can be a landmine for them - for example, something happens and the property goes into foreclosure. The bank can move against your husband (because he's on the mortgage) but not you (although you are on the Deed). The bank isn't going to allow it without signed approval/consent. In some instances the mortgage has to be refinanced because the bank won't just add a name.

The people listed on the Deed own the house - in whatever fashion the Deed is written.

And, no, there is no gift tax involved.

ScottGem · Apr 24, 2008, 05:57 AM

Normally, adding someone to a deed would mean selling them a share of the property. But, in most states a spouse can be added without it being considered a sale. However, I agree with Judy, that you need to check with the mortgage holder. Any change in ownership could trigger a call of the loan.