Why is this important to know for immigrants? Because immigration status is irrelevant. I have had many clients over the years who do not buy property because they have no papers and think it is not legal for them to do so or they fear losing the property if they are deported. A person’s immigration status is absolutely irrelevant to land ownership as is a person’s actual presence in the US. Worst case-scenario, if a person was deported due to not having papers, they still would be able to keep their legal ownership interest in their property.
Another common mistake immigrants make is believing that since their spouse has status and they don’t, that all property should be put in that person’s name. This is not true or a good idea. Major problems can occur in the future if, for example, the couple gets divorced or separates. In fact, this is just what happened to a client of mine. She is not listed on any of their joint property because her boyfriend is listed as the only owner due to the fact that he has Deferred Action for Childhood Arrivals (DACA). They thought it would be safer for someone with DACA to hold all titles. Now, she cannot prove that she paid for half of the properties. Further, because they are not married, the law does not automatically protect her interests since Michigan (and most states) do not recognize common-law marriage. Just because you have been “together” for years does not give you the protections of a true marriage. In this case, she is going to have a difficult time getting anything out of the relationship that she worked so hard to contribute to.
Although the same is generally true with family business ownership, it is a little easier to fight for your interests since the law recognizes people’s behaviors in a business as an indicator of the intent behind the business relationship. In this way, courts will give credit for contributions whether your name is on the ownership papers or not. Contracts are always highly recommended for people in business together whether it is a family business or not. It is quite easy for an attorney to draft a document that will protect all people involved in the organization in the event that something unexpected happens in the future; divorce, separation or deportation.
The last topic I want to mention relates to the habit of people lending money to others without some sort of contract or written confirmation of the loan. There is nothing wrong with expecting the person you are loaning money to, to sign a contract. Even if they are family. If you are generous enough to give your hard-earned money to others to help them, the person receiving the money should be more than willing to agree to a contract recognizing that transaction. It helps protect you both in the end. Again, like an agreement in a family business, an agreement between someone loaning money is also a simple document for an attorney to draft. Doing so usually saves the lender from losing thousands of dollars and also saves the friendship or family relationship.
