Simply put joint ownership is two people owning the same things. It can be a home, land or something for that matter. Here's a look at what it is to you.
Simply put joint ownership is two people owning the same things. It can be a home, land or something for that matter. If two people can own it so you can have joint ownership of it. Most cases of joint ownership is between married couples. In the event of the spouses death having joint ownership can make things much easier for living spouse. You could find yourself fighting to keep your home if you don't have joint ownership of it. Here's another related blog post; full details.
When your spouse dies it is necessary in order to restrict the funds as soon as possible. When you're tied up with probate that might be hard to do. When you jointly own your home it will be immediately transferred to you along with your assets. Most states don't consider your home additional property when your spouse dies and you jointly own the property. This means that no taxes are added or assessed for the property of the home.
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Dividing the assets in a divorce is much easier if the couple has joint ownership. When something is jointly owned it is split equally in a divorce. One person may decide to sell there portion of the assets to the ex spouse. You can not contest rights very easily with joint ownership. Click this link; http://agnesbiz.webgarden.com/sections/blog/can-you-afford-to-own-your-own.
Other people can jointly own things it isn't solely for couples who're married. Sometimes a parent and a child have joint ownership of property. If the child has financial stability and is the one child this is a fairly good idea. When a parent and child jointly own property the child doesn't get stuck in probate when the parent dies. Most financial advisers warn against doing this though.
A parent and child that jointly own a home or property together may still have some problems. When there are multiple children the parents sometimes want the home sold immediately and all the money split between the children equally. If the child that is now the sole owner of the house refuses to do this the other children would get zero.
The home is legally the child's property and became the owner immediately upon death of the parent. This is a bad situation that can result in a lot of hard feelings between family members. If the child doesn't wish to follow the directions of the parent then legally the other children have to just live with that decision. A parent could face more problems than that though. If the child is having some sort of financial trouble like bankruptcy or unpaid back taxes the parent could possibly lose the home to debt collectors.
Normally the equity split would be 90% for the buyer and 10% for the family member, although in these economic times it will probably be a lower percentage for the purchaser. You may be found in the fortunate position to get a parent who owns their own home and was in a position to invest more in the property for you; parents always want to help their children so I'm sure they'll help as much as possible.
If the family equity loan is not an option for you, there is another shared home ownership option in the shape of government schemes, here in Scotland it is the Low Cost Initiative for First-Time Buyers (LIFT). If you're classed in the low to moderate income bracket then the government may be able to help you with putting up a part of the equity needed to purchase a home. This may be a better option even if family help is available as you can borrow up to forty per cent normally with more available in exceptional circumstances. Of course increases in home values would benefit your family member.
When two people have joint ownership of a company is it a good idea to get extensive documents drawn up and signed saying what should and shouldn't be made by each owner. Having these documents will ensure the security of the business as well as both owners. You should have these documents as soon as the ownership papers are signed.