MARK KOHLERMain Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, LLC · Owner at Main Street Professionals, LLC

Your Kid’s Lawsuit Can Steal Your House ⚖️

16 Jun 2026 · 0 min

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In this segment, Mark Kohler warns homeowners about the hidden danger of adding a child’s name to a property title. He explains that if the child becomes involved in a lawsuit, divorce, creditor action, or faces tax liens, the plaintiff or creditor can pursue the portion of the home owned by the child, thereby exposing the parents’ home equity to external claims. Kohler emphasizes that this risk is the most significant issue with putting kids on title, noting that while a gift‑tax return is required, the immediate concern is the potential loss of home equity due to the child’s separate legal and financial problems.

This is a big deal. Let's say your kid gets into a lawsuit, they get sued, they go through a divorce, they have any creditor issues, tax liens, federal or state. Guess what? Whoever that plaintiff is or creditor, they can now go after a part of your home because that's an asset of your child's. That is not good. When putting kids on title, this is the biggest issue for me. Yeah, there's a gift tax return, number one. I've got other issues, but immediately you've just exposed your home equity to someone else's life.