Buying a home under two names may help couples secure a housing loan, but it can also lead to a complicated inheritance process if no proper planning is made.
Shariah-registered financial planner Fikry Fahmee recently shared a case he was helping to manage involving a divorced couple and their jointly owned home in Puchong.
According to Fikry, the couple had taken out the housing loan under both names before eventually divorcing.
The former husband later passed away, leaving the ownership of the property difficult to settle.
Ex-wife allegedly paid for the house
Fikry claimed the former wife had only included her then-husband’s name to help secure the housing loan.
However, she was allegedly the one who handled the monthly repayments, renovation costs, household purchases and property taxes.
Following the former husband’s death, his half of the jointly owned property reportedly became part of his estate, which involved 15 heirs.
Despite allegedly paying for most of the house, the woman could not simply take over her former husband’s share.
Both sides unwilling to cooperate
The situation became more complicated as the former wife allegedly did not want to meet the deceased man’s wife.
Fikry questioned how the matter could be resolved if the relevant parties and heirs were unwilling to cooperate.
He also claimed that third parties had interfered and influenced some of the heirs.
According to him, the former wife only wanted the house, while the deceased man’s wife had reportedly received other assets, including savings, takaful and Amanah Saham Bumiputera funds.
However, the deceased man’s wife reportedly still wanted to claim a share of the property.
Important documents held by different parties
Fikry added that some of the documents required to settle the property were held by the former wife, while others were with the deceased man’s wife.
As the necessary documents could not be gathered, the process was unable to move forward.
He said it was also unclear whether a power of attorney could be obtained, resulting in a lawyer having to be involved.
‘A house under two names is not a mistake’
Fikry stressed that buying a home under two names was not necessarily a bad decision.
However, he warned that the process could become much more complicated after one owner dies if no arrangements were made beforehand.
A house under two names is not a mistake. However, without planning, the process following a death can become more complicated.”
He added that estate planning was not about expecting someone to pass away, but about making things easier for the people they love.
In the comments, one woman shared that her housing loan was registered under two names, while the sale and purchase agreement was under her name alone.
She said she had also arranged a property hibah for her husband in case she passed away first.
Another netizen asked what couples with jointly owned homes could arrange before either spouse died.
Fikry replied that several factors would first need to be considered, including the identities of the couple’s respective heirs.
He suggested that property owners could explore options such as hibah, depending on their individual circumstances.
As every family and property arrangement is different, homeowners should seek advice from a qualified lawyer or registered financial planner before making decisions involving joint ownership, inheritance or hibah.
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