So, You and Buddy Bought a House (and Buddy Owes Money) - Can They Stick You With a Lien?
Let's face it, buying a house with a buddy can be the ultimate sitcom premise. You've got the neat freak and the slob, the early bird and the night owl. But laughter can turn to tears faster than you can say "uneven distribution of chores" if one of you winds up owing a boatload of money (think: giant novelty check from a failed emu ranch scheme). The question then becomes: can a lien be slapped on your jointly owned property in Michigan because of your partner-in-crime's, well, crimes?
Buckle Up, Buttercup: Understanding Tenants by the Entirety
In Michigan, married couples have a special ownership option called tenancy by the entirety. This fancy legal term basically means you and your spouse are like Voltron, but for property ownership – you're one unified entity. Here's the good news: generally, a creditor of one spouse cannot place a lien on property held as tenants by the entirety. So, if your spouse goes rogue and starts skydiving with squirrels (don't ask), their debts typically won't mess with your house.
But wait! There's a twist! This only applies if the debt belongs solely to one spouse. If you both signed on the dotted line for a loan (think: mortgage, joint business venture gone south), then a lien can be attached to the entire property.
Not Married? Don't Despair! (But Maybe Hire a Lawyer)
If you're not a married couple and co-own property in Michigan, things get a bit more complex. In this case, each person owns a share of the property, and creditors can potentially place a lien on an individual's share to satisfy a debt. While it doesn't affect the other owner's stake in the property, it can make things messy (think: forced sales, awkward conversations with strangers who now co-own your house).
The bottom line: If you're not married and co-owning property, consult a lawyer to understand the specific legalities and how to protect yourselves.
FAQ: Lien Edition!
How to know what type of ownership I have on my property?
Check your property deed! It will specify the type of ownership (tenancy by the entirety, joint tenancy, etc.).
How to avoid a lien on jointly owned property?
Make sure both parties are financially responsible and avoid co-signing for risky debts.
How to remove a lien on jointly owned property?
The process depends on the specific lien. Consult a lawyer to explore your options.
How to avoid co-owning property with someone who skydives with squirrels?
This one might require a good vetting process and a solid prenup (if applicable).
How to deal with a messy co-ownership situation?
Lawyer up! A property lawyer can help navigate the legalities and find the best solution for everyone involved.
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