Taking title; when only one name appears on the dotted line

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Published Date 11/18/2022

Married, single, or filing separately? When doing our taxes, questions like that sometimes make us check off boxes we haven’t fully understood. But when both you and your spouse are buying a house together, what about whose name appears on the title? Dr. Seuss might even ask if you can buy a “house without your spouse.”

Realtor.com’s Lisa Kaplan Gordon says that although it might seem like a weird and highly unromantic question, there are plenty of reasons to ponder this possibility. “Basically, this means that although you two might live in the home together, only you would technically “take title” to the property—a fancy way to say that you own it and have your name on the deed. It’s legal—and more common than you might think.”

Of course, taking title to a property without another person, spouse or not, is always an option. But assuming that keeping your spouse off the deed isn’t necessarily a vote of no confidence in the marriage. “Particularly for couples entering second or late-in-life marriages, it can make a whole lot of sense,” Says Gordon, who goes on to point out some pros and cons of this arrangement.

The upside of having only one name on a property’s deed includes when one of you has “pre-marriage” money and the other does not. “If you buy a home using the money you earned or inherited before the marriage, it can make sense to keep your spouse off the deed, title, and mortgage,” says Gordon. “That way, the property clearly is in your name and can be sold or mortgaged at your sole discretion. You own it. Case closed.”

It’s also common to get a better deal from a lender when the person whose credit and financial profile aren’t as stellar as the other. “If you have a great credit score and a lot of assets, and your spouse has crummy credit and few assets, you might have an easier time getting a mortgage at a better rate if only your name is on the deed and loan,” says LA-based real estate attorney Zachary D. Schorr. Plus, if the property is in your name alone, you can bequeath it to whomever you want in your will, including children from a previous marriage.

What about what creditors can seize if one of you has a spotty financial history? “Let’s say your spouse has defaulted on student loans taken out before you two met,” poses Gordon. “By keeping your partner’s name off the deed, creditors can’t go after property that is in your name only.” It’s a thought.

And then there is the future of the relationship to think about. Few couples walk down the aisle thinking it won’t be forever. You might even be in the happiest marriage of all time. But life happens, unions split, and people die. In such cases, you can maintain more control over a property by having your name on the deed alone.

There are a few downsides to the house-without-the-spouse ownership scenario aside from hurt feelings, however. First, some homeowners associations will zero in on and only communicate with the person whose name is on the deed. Kind of like not being able to talk to your cell phone carrier when the phone is in your spouse’s name and on the monthly bill. “This means that all communications must go through you, which can be a hassle if you’d like your spouse to occasionally speak on your behalf when contacting the HOA/condo board or attending meetings,” says Gordon. And if you two are into asset-building, it’s a good idea to grow your financial future as a couple by having both names on both the loan as well as the deed, as it will make you both more creditworthy when looking for funding.

In most cases, keeping your spouse’s name off a deed requires their consent. Many lenders will require your partner to sign what is called a “quitclaim deed” — a document that “disclaims” any interest in the property. It’s how the lender protects themselves as well as the borrower from future title disputes, according to Schorr. This also means you can’t secretly buy a home behind your spouse’s back. Your spouse is merely signing off on it while agreeing to remain on the financial sidelines.

Before going into an arrangement where only one of your names appears on the loan as well as the title to your home, it pays to have a frank discussion about it even before your lender explains how all of this works. “If you’re worried broaching this arrangement might offend your spouse, be sure to point out that this doesn’t reflect any distrust on your part,” says Gordon. “Emphasize why it makes financial sense, and is important to you, and most spouses will understand where you’re coming from.”

Realtor, TBWS

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