{"id":905,"date":"2020-06-25T06:09:23","date_gmt":"2020-06-25T10:09:23","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=905"},"modified":"2024-04-26T00:13:45","modified_gmt":"2024-04-26T04:13:45","slug":"deeds-and-divorce","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/deeds-and-divorce\/","title":{"rendered":"Deeds and Divorce"},"content":{"rendered":"\n
\"Two<\/figure>\n\n\n\n

Many home deeds belong to couples. When couples separate,\nwhat happens to their deeds? And what can you do to protect your interests if\nyou\u2019re a homeowner who could be headed for divorce? Here, we take a look at a\nfew of the biggest issues.<\/p>\n\n\n\n\n\n\n\n

Dealing With the Mortgage Before Giving Up the House <\/h2>\n\n\n\n

Divorce is stressful enough. The last thing you need is a\ndeed-related debacle because you left the marital home \u2014 and nobody\u2019s paid the\nmortgage since.<\/p>\n\n\n\n

Let\u2019s start right off with the worst-case scenario. If your\nformer home goes into foreclosure and you\u2019re still on the mortgage, the\nmortgage company does not want to hear about your divorce. If you\u2019re still on\nthe mortgage, the lender wants you to address the responsibility you signed up\nfor, and pay the debt.<\/p>\n\n\n\n

Does this really happen? Now and then it does. The court\norder for a divorce might say who gets the house, but by itself it does not\ntransfer the home or address the mortgage.<\/p>\n\n\n\n

Yet transferring ownership to an ex is easily done. At its most basic, a quitclaim deed<\/a> is all it takes.<\/p>\n\n\n\n

The trickier part is getting your name off any debts that\nare tied to the home. If you give up your interest in the marital home before\nyour name comes off the loans, you will have no access to the asset, yet remain\nresponsible for the debts.<\/p>\n\n\n\n

So, to prepare for a property transfer, consult with your\ndivorce lawyer about the right actions to take, in the right order. <\/p>\n\n\n\n

Both the lender and your ex might formally agree that your\nex can assume your loan. If your loan can be assumed, your ex might be able to continue\npaying it off under the same terms. If so, the loan will stay in place; your\nname, though, will come off. In the more common situation, your spouse will\nneed to refinance the home and take out a new mortgage loan alone, or sell the\nhome. The divorce decree might specify a certain amount of time, such as two\nyears, for your ex to refinance and take your name off the mortgage. Avoid\nsigning a quitclaim deed until that happens. <\/p>\n\n\n\n

The bottom line? Be sure the lender releases you from the original\nloan before you sign a deed over. If there is a need for you to sign the deed\nover to your ex to allow the refinancing or home sale to go forward, consult\nwith your lawyer for advice on how to protect your interests.<\/p>\n\n\n\n

Actions to Take if You Have Already Signed Over Your Deed <\/h2>\n\n\n\n

If you have already transferred your interest in a home without\nending your mortgage responsibility, again, the thing to do is consult with a\nlawyer. The lender just wants the payments, and has no interest in the payer\u2019s\ndivorce status. If your ex is making the monthly payments, you might even be\nbenefiting from a subtle credit score lift. But the day your ex stops paying is\nthe day your credit is at serious risk. One day you might find out there\u2019s a\ncollection agency on your case, looking for repayment. <\/p>\n\n\n\n

You might ask why you\u2019d need a lawyer for this situation.\nShouldn\u2019t the bank just release you from the mortgage? That would be nice, but the\nbank probably won\u2019t, unless:<\/p>\n\n\n\n