Tax Problems in Joint Home Ownership for Divorced Couples

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In what is referred to as the ‘hidden area of the law’, Vanderbilt law professor, Kelly Lise Murray has been conducting free seminars to educate couples on the inherent dangers of divorce while the home is under joint names. Situations like these have led to lawsuits all over the country mainly due to bad advice from divorce lawyers, real estate agents and even divorce court judges. In today’s bad economy, many divorcing couples are maintaining joint ownership of their houses waiting to sell when the price goes up.

But in the meantime, should the mortgage payments fall behind schedule, then both ex-partners are liable. If both parties decide to rent out the property, then when it comes time to sell, it will be more costly for the couple as the house no longer qualifes for tax breaks as their primary residence.

Please see full article below for more information.

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Published In: Family Law Updates, Residential Real Estate Updates, Tax Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Darrin Mish, Tampa Tax Attorney, The Law Offices of Darrin Mish, P.A. | Attorney Advertising

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