Buying a house together? Better to be married

Q: My boyfriend and I are looking to buy a house together. What legal form would be best to use in case anything arises down the road?

A: You may get a totally different opinion from another attorney, but I think it’s a really bad idea for two unmarried persons to buy a house together. There’s just too much that can go wrong.

When married people own a home together and then get divorced, they go to court and have lawyers and a judge who will force them to resolve the ownership. Even then, there can be issues with obligations under the mortgage, where one spouse still is liable on the mortgage even though the other spouse owns the home.

But when unmarried people buy a home and later break up, there is no divorce. They just go their separate ways. That process will be much more difficult if they own a home together.

The two of you could hire an attorney to prepare an agreement regarding the ownership of the home, including a requirement that upon breakup one of you must buy out the other (which may or may not even be financially possible or allowed by your lender, and which may lead to a disagreement over price), or that you must put the home up for sale (which can also lead to all sorts of additional disagreements).

Here’s my recommendation: Rent while you are dating, and buy a home once you are married.

Q: In June 2017, I sold my car to my stepson. Title is in his name. He was to pay me $2,000. I have yet to collect a payment from him, and he refuses to return the car. Is this something I can sue for in small claims court?

A: Yes, you can certainly sue in a Justice of the Peace Court (often called a small claims court), but even if you win, it will be really difficult to collect. The whole exercise may be a giant waste of your time.

Q: Since my name is on my mother’s checking account, can I simply send checks after she dies in equal amounts to my siblings? This is the wish expressed in her will. Would any of these checks be considered taxable income to my siblings?

A. Once you receive the checking account after your mother dies, you can then distribute the money in the account by writing each of your siblings a check, and this money will not be taxable income to them. Of course, you will be under no legal obligation to make those gifts, but you are free to do so if you wish.

Note, if the gifts are large enough, you might be required to file a gift tax return, but it’s highly unlikely you will owe any gift tax.

The information in this column is intended to provide a general understanding of the law, not legal advice. Readers with legal problems, including those whose questions are addressed here, should consult attorneys for advice on their particular circumstances. Ronald Lipman of the Houston law firm Lipman & Associates is board-certified in estate planning and probate law by the Texas Board of Legal Specialization. Email questions to stateyourcase@lipmanpc.com.