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Is it better to invest FULL savings, in a home before marriage, or PARTIAL savings after marriage (50/50 contribution with spouse)?

Personal Finance & Money Asked by stack_r on May 25, 2021

My question is around the safety of my brother’s investment (Washington State, USA) if shit hits the fan and his marriage falls apart.
He is planning to buy a property now (huge investment) but our family has divided opinions upon whether to wait for his marriage (within 2 years) or to invest all his money right now.

Are there any consequences if –

he buys later (with his wife, in 50/50 contribution where the property might be smaller, but risk and ownership divided)

vs.

He buys now (when he puts all his money in, risking everything from his pocket, but doesn’t know if his future wife may take half from him if things go sideways)

The biggest concern my family has is – he might lose all his savings in a divorce if he invests now risking everything from his pocket.. Is it true and is this how it works ?

We are concerned and want to be careful.
Thank you for the help

One Answer

Your concern is that someone ("an ex wife") may take some of Brother's assets.

Unfortunately, if Brother has

  • cash money in the bank

  • owns real estate

  • owns stocks and bonds

  • has valuables such as gemstones

  • has everyday items such as cars, boats

No matter what "mix of stuff" Brother has, as assets, those assets can be chased by another party (example, "an ex wife").

The other party can "go after it" regardless.

For better or worse (get it?) it makes no difference what form the assets are in.

In short. Say Brother has one million dollars in the bank. Nobody owns a house and no house is ever bought, they just rent. There's a divorce. Then, ex-wife gets half of the million bucks. (Obviously, depending on local laws, etc ... but that's the answer to the spirit of your question.)

It's no "safer" in the sense of the question to put money in to a house or not.

Answered by Fattie on May 25, 2021

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