MoneyLog｜부동산·경제 인사이트

“The house was in my husband’s name, so I thought it would automatically become mine.”

This is one of the most common things we hear during consultations. After decades of living together, with children already independent, it feels natural to assume the surviving spouse would own the home.

But the reality is very different. The moment a spouse passes away, the house becomes inheritance property, and the surviving spouse becomes a co-heir with the children.

What surprises many people is this: even with just two children, the surviving spouse receives less than 50% ownership. From that point on, renting out the home, using it as collateral, or even making major decisions requires the children’s consent.

As housing prices rise, inheritance disputes like this are becoming increasingly common. Families who believe “this won’t happen to us” often face the most painful conflicts later.

In this article, we will walk through how property is divided after a spouse’s death, why surviving spouses lose control, and what practical steps you can take now to prevent disputes.

Many people assume that if the house was in their spouse’s name, it would automatically become theirs after the spouse passes away.

However, under Korean civil law, this is not the case. At the moment of death, the property becomes inheritance property, not the sole asset of the surviving spouse.

If there are children, the house is inherited jointly by the surviving spouse and the children.

Even if the property was registered under one spouse’s name, ownership does not automatically transfer to the surviving spouse.

This is where confusion often begins. “Does that mean I live in the house, but can’t fully control it?”

Unfortunately, the answer can be yes. Without understanding inheritance rules, the home may become a place you live in but cannot freely manage.

A common assumption is that the surviving spouse receives “most” of the inheritance.

That is true — the spouse does receive the largest single share. However, the critical issue is that it is often less than 50%.

Under Korean civil law, inheritance shares are calculated as follows:

• Spouse: 1.5 times the share of one child
• Children: equal shares

Let’s look at the most common example: two children.

• Spouse: 1.5
• Child 1: 1
• Child 2: 1

The total becomes 3.5. When converted into percentages:

▶ Spouse: approximately 42.9%
▶ Each child: approximately 28.6%

This means the surviving spouse holds the largest share, but does not have majority control.

That single number becomes the starting point of many real-life problems, because with real estate, decision-making power matters more than percentages.

As shown earlier, when there are two children, the surviving spouse holds about 42.9%.

Why does this number matter so much? Because in real estate, decision-making power matters more than ownership percentages.

Once inheritance is finalized, the house becomes jointly owned property, and strict rules apply.

① Management actions
Activities such as signing or changing a lease require majority consent of ownership shares.

If the surviving spouse owns less than 50%, even renting out the property may require the children’s approval.

② Disposal actions
Selling or gifting the property requires unanimous consent from all co-owners.

If even one child disagrees, cannot be contacted, or refuses to cooperate, selling the house becomes nearly impossible.

③ Mortgage loans
Using the house as collateral also requires consent and documentation from all co-owners.

This means that even when funds are urgently needed, the surviving spouse may be unable to act without the children’s cooperation.

Many people say, “They’re my children — they wouldn’t oppose me.”

In reality, however, conflicts often arise due to spouses of children, financial pressure, or sibling disputes.

When those conflicts escalate, the situation can move to the next and most dangerous stage.

When joint inheritance continues for a long time, one question inevitably arises:

“When can I receive my share?”

If even one child wants to liquidate their inheritance, there is only one legal option left.

This is called a court petition for division of inherited property.

When agreement fails, the court must decide how to divide the property.

Because real estate cannot be easily divided, courts usually choose one of two options:

• ① One heir takes the property and compensates the others in cash
• ② The property is sold at auction and the proceeds are divided

In reality, surviving spouses often cannot afford to buy out all other heirs.

As a result, courts frequently order a forced auction.

In such cases, the house is often sold below market value, and the surviving spouse may be forced to leave the home they lived in.

At that point, no one truly wins. Families are damaged, assets lose value, and the surviving spouse’s stability is put at risk.

The most effective way to avoid the worst-case scenario is to arrange joint ownership while both spouses are alive.

Many people hesitate because they worry about complexity or taxes. However, from an inheritance perspective, joint ownership provides strong protection for the surviving spouse.

Consider this example:

Joint ownership between spouses, with two children

Each spouse owns 50%. When one spouse passes away, only their 50% becomes inheritance property.

After applying inheritance ratios, the surviving spouse ends up with approximately 71.4% ownership.

This majority stake allows the surviving spouse to retain decision-making control and significantly reduces dispute risks.

Joint ownership is not always an option. In such cases, lifetime gifts and wills become practical alternatives.

① Lifetime gifts
Transferring ownership while alive allows families to fix ownership structure before inheritance begins.

② Wills
A will clearly states that the property should go to the spouse.

However, children still retain forced heirship rights, known in Korea as reserved shares.

Even so, wills significantly reduce uncertainty and limit the scope of future disputes.

A living trust that functions as a will has become an increasingly popular option.

This structure allows property management and distribution to follow predefined rules after death.

It is especially useful when protecting the surviving spouse’s right to live in the home while postponing ownership transfer to children.

Although it involves costs, it offers one of the most stable ways to prevent inheritance disputes.

Even after a spouse has passed away, there may still be options — timing is critical.

Before inheritance registration is completed, heirs can agree on a different ownership structure.

With the children’s consent, the property can be registered solely under the surviving spouse.

The key at this stage is persuasion, not confrontation.

Circumstances change. What feels acceptable today may become a source of conflict tomorrow.

That is why agreements should always be finalized in writing, not left as verbal promises.

Many people believe inheritance issues are “a distant concern.”

But as we’ve seen, the moment a spouse passes away, a home can quickly become the center of conflict.

In summary:

• A solely owned home becomes joint inheritance property
• The surviving spouse may hold less than 50% ownership
• Decisions on management, loans, or sale may require children’s consent

Without preparation, disputes can escalate to court-ordered division or forced auction.

With proper planning, however, outcomes change:

• Joint ownership can secure majority control
• Gifts or wills can clarify intentions
• Living trusts can structurally prevent disputes

The key is not choosing the “perfect” method, but avoiding the risk of having no plan at all.

The moment you are reading this may be the best time to prepare.