Joint Ownership of Property and Divorce

By Attorney Ian Reardon – When a married couple goes through a divorce, one of the key issues is the division of marital property. A common complication arises when one spouse jointly owns property with someone outside the marriage, such as a parent, sibling, or business partner. In New Hampshire, property jointly owned by a spouse and a third party can still be considered part of the “marital estate” and subject to division—understanding when and how this happens is crucial in a divorce.

What is Marital Property?

Under New Hampshire law, “marital property” includes all assets, real or personal, tangible or intangible, belonging to either or both spouses, regardless of when or how they were acquired. This broad definition means that if a spouse owns an interest in property at the time of the divorce, it is generally considered part of the marital estate, even if it is jointly owned with someone else.

When Can Jointly Owned Property Be Divided?

The recent case of Routhier v. Routhier highlights how a court treats jointly owned property during a divorce. If a spouse jointly owns a piece of property—such as real estate—with a third party, that spouse’s interest in the property is still subject to division in the divorce. In Routhier, the husband co-owned a piece of property with his parents as joint tenants. The New Hampshire Supreme Court clarified that, while the parents’ joint ownership interest remained intact, the husband’s share of the property was considered marital property.

How Is Joint Ownership Addressed in Divorce?

The court will first determine the value of the spouse’s interest in the jointly owned property and include that interest in the marital estate. Importantly, the court will not sever the joint ownership or affect the third party’s interest. Instead, it will consider the spouse’s share and award it as part of the overall division of marital assets.

It’s worth noting that not all joint interests are treated equally. If the third party has a secured financial claim against the property (like a mortgage or lien), the court may need to carefully navigate those interests. However, in cases where the spouse simply owns an undivided share, that share is generally treated as part of the marital estate.

Why Is This Rule Important?

This rule ensures fairness in property division, preventing one spouse from shielding assets by co-owning them with third parties. However, it also respects the ownership rights of third parties by not disrupting their interests. If you’re facing a divorce and own property with someone other than your spouse, it’s important to understand how your interest may be valued and divided.

If you have questions about how your jointly owned property might be handled in your divorce, contact Schoff & Reardon, PLLC. Our experienced divorce attorneys can help you understand your rights and navigate the complexities of property division.