So play by their rules... set up an LLC in each of the spouses name. And buy the property, if over 1,100,000, as a 50/50 between both entities and get all the tax benefits. I like this idea personally. You could even transfer it to a holding company and put it out of the reach of any debt collectors and people who want to sue you. So, back to the basics of this all, a situation is only a disadvantage to you if you allow it to be.