Say you own a home by yourself. Then, OKCupid or Match.com or your sister or your roommate or your personal trainer hooks you up on a date that turns out really well, and time passes, and you get married. Yay! Congratulations to you and yours. (Shameless plug for happiness: I just got married at the beginning of March and am on my way through the paperwork to-do list that follows the nuptials.)
This is a real estate blog, so I’ll start with things to consider about your property now that you’re married. For the sake of simplicity, I’m going to assume that there’s only one property. If there are two: lather, rinse, repeat for home #2 (with a few modifications that I’ll mention later).
OK, you’re back from the honeymoon and it’s time to get busy. No, not like that — this is a G-rated blog! I mean it’s time to decide how you’d like to hold title to your property. If you live in California, which is a community property state, property acquired before marriage is considered separate property — i.e., it belongs to the spouse who owned it before getting hitched. If you want to own the property jointly with your spouse, you can add him or her to title by way of a grant deed that you will sign granting ownership to You & Your New Spouse, husband & wife (or wife & husband, or spouse & spouse) as community property with right of survivorship, if that’s what you choose. I’m not a tax advisor nor am I an attorney so I will say that you should seek the advice of a CPA or an attorney about how to hold title; there are some pretty significant tax implications that make this a very important decision.
How do you accomplish the change to title? Talk to your attorney or your favorite escrow officer to draw up the deed, then have it notarized and recorded in the public records in your county. A few caveats: Check with your lender to make sure that adding a spouse to title is acceptable (most lenders are OK with this but you don’t want to find out the hard way that your lender is not). Most jurisdictions do not consider adding a spouse to title as a taxable event and no transfer tax would be due, but again, it’s worth checking before you start deeding.
For the sake of discussion regarding insurance, let’s add a second property to the mix. Presumably you and spouse will live in one and rent the other. Be sure to convert the insurance for property #2 to the correct type of policy for a rental property. And it’s a good time to review the policy for the home that you’ll live in — make sure you have sufficient coverage for personal property (which might need to increase based on the belongings that Spouse moves in).
These are just a few tips for post-wedding paperwork. Let us know if the comments if you have any other property-related tips.