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.
Posted by CrackerJack on August 02, 2003 at 20:16:31:
I have worked with a person we’ll call “Madame X” for the past 6-7 years, she’s a single mother of 4, and she does an excellent job of raising them. She’s as honest as the days long, and works very hard at a physically intensive job - 6 days a week, never misses work, never does a half-ass job. She lives in a 3 BR. apartment and can not save a penny towards owning a home, - her ex-husband hasn’t paid child support for years - and she can’t afford the lawyer anymore to chase him. How can I structure a deal to put her in a home of her own?? - I want to be as fair as possible with her, I was thinking of contracting for me putting up the down payment, closing and legal expenses, then it’s her responsibility for the mortgage and all living expenses. It’s her home to live in ect. - When she sells I get my original cash investment back off the top, and we split the remaining equity 50/50. - I’ve paid off my mortgage and really have no debt, so that’s why I’d be open to try and provide some help for a really good hard working person, thoughts anyone??? Of course I realize you make your money when you buy, and I’d only purchase a “good deal” - Thanks…