Situations arise where a marital home subject to divorce proceedings is legally titled in the name of one or both parents of one of the divorcing parties. This often occurs when parents provide financial assistance for the purchase of the property, retaining ownership for various reasons, such as protecting their investment, assisting with mortgage qualification, or estate planning purposes. For example, a couple may reside in a house solely owned by the wife’s mother, even though the couple contributes to its upkeep and mortgage payments.
The ownership structure has significant implications during a divorce. The primary benefit to the parent(s) is the preservation of their asset. Historically, family assets have been a complex area during divorce settlements. The legal status of the property will dictate whether it is considered a marital asset subject to division between the divorcing spouses. Its inclusion depends on factors such as the intent of the parties, contributions made by the couple towards the property, and relevant state laws regarding separate versus marital property.
