Jointly Owning Property Checklist

If you and your ex-spouse decide to continue jointly owning a property after your divorce, it’s essential to establish clear agreements to avoid future conflicts. Use Melina’s checklist to address key legal, financial, and maintenance aspects.

1. Legal Agreements

• Ownership Structure:
  • Define how the property will be owned: Joint Tenancy or Tenancy in Common.
  • Specify ownership percentages if unequal.
• Exit Strategy:
  • Agree on how the property will be sold or one party will buy out the other if one decides to leave the arrangement.
  • Include a timeline and valuation method for determining the buyout price.
  • Agree on getting an updated Broker Price Opinion once a year.
• Dispute Resolution:
  • Determine how disagreements will be resolved (e.g., mediation, arbitration, or legal action).
• Legal Documentation:
  • Formalize all agreements in a binding contract with the help of an attorney.

2. Financial Agreements

• Mortgage Responsibility:
  • Clarify who is responsible for mortgage payments and ensure both parties contribute fairly.
  • Decide if refinancing is necessary to adjust liability or remove one party from the mortgage.
• Tax Implications:
  • Agree on how property-related taxes (e.g., property tax, capital gains tax upon sale) will be divided.
  • Consult a tax professional to understand implications for joint ownership.

3. Maintenance and Upkeep

• Expense Sharing:
  • Define how maintenance costs (repairs, utilities, HOA fees, etc.) will be split.
  • Agree on how often a home inspection should be conducted.
  • Establish a shared account for property-related expenses to avoid disputes.
• Responsibility Allocation:
  • Decide who will handle routine maintenance, repairs, and other property management tasks.
  • Schedule regular check-ins to review property upkeep.

4. Insurance Coverage

• Homeowner’s Insurance:
  • Ensure adequate homeowner’s insurance is in place.
  • Decide who will pay for the policy and how any claims will be managed.
• Liability Coverage:
  • Consider additional liability coverage to protect both parties in case of accidents or claims related to the property.

5. Estate Planning

• Trusts and Inheritance:
  • Establish how the property will be handled in the event of one party’s death.
  • Update your wills or trusts to reflect your wishes for the jointly owned property.
• Beneficiaries:
  • Agree on whether the property will pass to heirs or the other owner upon death.

6. Refinancing or Adjusting the Mortgage

• Mortgage Documentation:
  • Ensure both names remain on the mortgage, or refinance if one party’s financial responsibility needs to change.
• Credit Considerations:
  • Be aware of how missed mortgage payments by either party could impact both credit scores.

7. Communication Plan

• Regular Check-Ins:
  • Schedule periodic meetings to review property expenses, maintenance, and future plans.
  • Consider contracting a property manager to help with managing the property.
• Documentation:
  • Keep detailed records of payments, agreements, and correspondence regarding the property.