Community Chat

[Spinach30]

Hi all!  A good friend of mine has been married a few years.  She married later in life (in her late fifties and so is her husband).  Her husband bought a house (very expensive) when they married and they live in it (about two years).  Their arrangement is he pays the mortgage and property taxes (from income from his sole investments).  She pays for all the household bills (electric, water, etc.) and buys the groceries and pays for vacations.  Now, her question to me is do I think that's fair.  He owns the house and when the time comes to sell or if either one dies, he gets all the proceeds except for the difference in any equity on the property which would be split 50/50 (assuming property values continue to rise).  She has invested over $40,000 of her own money on updates to the home.   They each have their separate accounts and no joint accounts.  He has stopped working and she continues to earn a salary. 

What are you're thoughts on their arrangement.  Fair or not? 

[adamlambert]

if her name is on the house I don't see a problem. Do they file joint income taxes? I had a similar arrangement until I quit working. Worked out well.  I would assume he contributes to the IRAs' savings and other investments.  

[excpa]

If they agreed to this at one time, it's fair.  If she wants to renegotiate the agreement, that's fair, too.   Good luck.

[sunshine45]

if it wasnt what she wanted or wasnt "FAIR" at the time they decided to do this, then she probably should not be complaining. is the house ONLY in his name?

[Spinach30]

The house is in his name only.

[sunshine45]

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@Spinach30 wrote:

The house is in his name only.

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i cannot believe she agreed to that......and if she did, then she made a big mistake.

[Spinach30]

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@Adamlambert wrote:

if her name is on the house I don't see a problem. Do they file joint income taxes? I had a similar arrangement until I quit working. Worked out well.  I would assume he contributes to the IRAs' savings and other investments.  

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Theyt have no joint accounts or investments.

[Bri36]

She should have her name on the house.

If she doesn't think it's fair, she needs to bring it up to her husband so they can work out a solution.

[sunshine45]

i sure do hope they both have wills!

[queendiva]

Fair, but maybe not smart on her part. Why did she invest $40K in "his" house? If for her taste and/or comfort, then OK. Sounds like she's having second thoughts after the fact.