
02/09/2025
Disadvantages of Buying property in the name of a child during a statutory marriage.
Legal Ownership Issues: If property is purchased in the child's name, legal ownership may shift. In the event of divorce or separation, the property may be viewed as belonging solely to the child, complicating equitable distribution of assets.
Guardianship and Control: Parents may lose some control over the property as children reach adulthood. For instance, if a child is 18 or older, they may have the legal right to make decisions about the property, including selling it without parental consent.
Financial Implications: If the property is valued at a high amount, it may affect the child's financial aid eligibility or lead to difficulties in securing loans in their name in the future due to increased assets.
Inheritance Issues: Property owned in a child's name may complicate inheritance matters, especially if there are multiple children or if the parents decide to leave the estate to others.
Liability Risks: If the property is rented or has tenants, any legal issues (like tenant disputes) may directly affect the child, especially if they are not yet mature enough to handle such responsibilities.
Marital Property Laws: In a statutory marriage, any property acquired during the marriage is typically considered joint property. Registering property solely in the child's name could lead to disputes over what constitutes marital property.
Lack of Legal Recourse: If the child is a minor at the time of purchase, they may not have the legal capacity to enter into contracts, leaving parents vulnerable if disputes arise concerning the property.
Impact on Child's Future: Ownership of substantial assets at a young age could create undue pressure or stress for the child, complicating their financial and personal development.
Difficulty in Transferring Ownership: Future transfers or sales of the property may require interventions from guardians or legal representatives, introducing complexity in the handling of the property.