I have a question about joint tenancy
Suppose a mother bought a house in 2006. Later that year she put her son on title as a joint tenant.
Seven years later the son files for bankruptcy. He is claiming his $30,000 homestead exemption on his own property in Utah.
The mother's house has a $100,000 in equity
. They were supposed to remove the son from title years before, but never did. The mother can claim her own $30,000 exemption on the house, but that leaves $70,000 in equity available for the son's bankruptcy court
All of the equity came from the mother selling her house in California. None of it came from the son who was really just along for the ride.
How does a bankruptcy court look at this? Is the mother going to eat a $70,000 loss because she forgot to remove her son from title and he filed bankruptcy?
Or can she claim a higher percentage of equitable ownership? In a Utah divorce for example, equitable ownership is given. If one party brought the majority of equity to a property it isn't just split 50/50 at the divorce.