Buying new home but might get divorced


#1

My daughter and her husband are set to buy a new home. My wife and I have promised to donate a large amount of money to my daughter to use for this purchase.
My daughter and her husband may get divorced soon. If they get divorced, will my daughter automatically get 50% of the home no matter what? She is raising 2 children under 4 years of age at home. She does not work outside the home. Her husband is sole earner.
Regardless of how much of the house she gets in a divorce, where does our substantial donation of cash go since it has already been used to purchase the house? Can it “stay” with her and not go to the husband? Or should I become an owner of the house myself?

Thanks!


#2

If the home is purchased by a married couple prior to a separation it becomes marital property. In many cases a gift to a child is their separate property, and does not become part of the marital estate. In this case however your gift to your daughter will be included in the marital estate as the funds are being used to purchase a home which is for the benefit of the marriage.

The home, if purchased during the marriage, is martial property, and your daughter will be entitled to a 50% interest in the same. If you purchase the home on your own, and “rent” the same to your daughter, you will avoid having her husband acquire an interest in the same.