Dear David,

My daughter and I are thinking of buying a property as co-owners. It would probably have a small mortgage or none at all. She would live there, but I’m wondering if the home should be in my name only. I’m concerned about protecting her from losing half of it, in case a future partner moves in and the relationship doesn’t last. – PROTECTIVE PARENT

DEAR PROTECTIVE: When family and real estate intersect, the structure you choose can have long-term consequences. It sounds like you would be funding most, if not all, of this purchase. If your primary concern is protecting your daughter in the event a partner moves in and the relationship ends, keeping the property in your name alone provides greater protection than purchasing as co-owners.

When a child is placed on title, their ownership interest can be exposed if a relationship breaks down. The risk increases if the property is used as a principal residence and becomes the matrimonial home. In divorce cases, courts focus on legal ownership and property use, rather than family intention. If the property remains solely in your name and your daughter has no legal ownership interest (much like living in a rental property), this typically means her partner would have no claim to the property, even if they’ve lived there for years. From a risk-management perspective, this may be the easiest way to protect her interest.

There are ways to give your daughter a stake in the home and help her build equity. For example, you could assist with the down payment rather than owning the home jointly. This allows her to make a meaningful contribution while limiting family exposure. 

By planning ahead, you can document your contribution, outline expectations, and plan for a future transfer or inheritance without creating unintentional legal vulnerability. As you work through your options, tax and legal advice are worth their weight in gold. Important considerations include potential capital gains tax if the property is not your principal residence, how the asset will be treated on your passing if you have more than one child, and whether the purchase is part of a broader wealth-transfer or estate planning strategy. It’s important to understand how inheritances are treated and documented, whether they could be excluded from marital assets, and the protection that can be lost if funds are co-minged. Your lawyer and accountant can work together to address these concerns.

PRO TIP: Talk to your daughter. When she understands these decisions are about protecting family assets and long-term stability rather than control, she may be appreciative of the planning behind them. Clear communication from the outset can help avoid misunderstandings, and ensure the ownership structure you choose reflects your intentions for your daughter and your family. #Advice #AskDavid #TheNegotiator 

David is a top-selling Broker in Kitchener-Waterloo Region. He works personally with you when selling or buying your home. Moving? Get it right. Ask David today! Call or text 519-577-1212.