Hello again. Hopefully this will be the last question I will ask. Thank you so much for all of your help so far. Here is the latest… my married boyfriend moved out of the marital home Aug 2013, with the clear intent of not moving back. Their separation agreement has been going back and forth for almost a full year. Within the document there is a 3rd party waiver which will ensure that I will not be sued for Alienation of Affection, etc. They are very close to signing. In the meantime, he is in the process of purchasing a new home where we both will live. My house contents are getting shipped from NJ to NC tomorrow!!!. Yesterday he told me he may have to involve his wife in that she may be asked to sign a document specifying that she will not have involvement with the new house. I’m not sure if this technicality (HUGE technicality) is because of the bank or the divorce. In your opinion,will his wife be attached to the house in any way as they are still not separated or divorced? Will it be considered a joint asset? I am planning on officially moving in. This will be my primary residence. I appreciate you sharing anything you can about what I may not be aware of… THANK YOU!!!
It sounds like your boyfriend and his wife are executing a free trader agreement. This is simply an agreement that avoids obtaining a marital interest in property purchased after the date of separation and before divorce, and it is pretty standard. The point of this agreement is to protect the property interest, in situations just like this one. This agreement removes any doubt as to whether the new house has any marital interest at all.
Thank you Lindsay…Without a signed free trade agreement, would his wife have to be on the title of the house, and/or would it be considered a joint asset?
Without the Free Trader, the house wouldn’t necessarily be “joint.” But, there are certain real property rights that exist when a married person purchases property. Your husband is still married, so the free trader allows him to buy and sell real property without placing her name on the deed or requiring her signature. The free trader allows your boyfriend to keep that real property as a separate asset and a separate obligation.