Posted by Ronald * Starr(in No CA) on August 02, 2003 at 21:26:56:
I think it is nice that you want to help her.
First, have you talked with her about what she wants? Does she want the responsibility for a house?
Would she be able to afford the payments on a house? Take into effect some tax benefits to her.
This is an “equity share” arrangement, also could be know as a “co-ownership yoke.” This was popular in the 1980s, so you might be able to find some old progams on it on e-bay, including forms.
Yes, have it written so that after say five years either co-owner can buy out the other or the property will be sold and the net proceeds shared. As long as she is on the ownership deed, she would be able to get any capital gains tax free, up to $250K.
I’d also suggest that you recommend that she look into the possibility of going after the ex-husband for child support. There is a lot more emphasis on that in the social agencies these days. There are people to talk to about it who might be able to help her with that.
Good Investing***************Ron Starr************