What Is a Quit Claim Deed and Why Is It Needed in Some Divorces?
In many divorces, one of the most significant issues to resolve is what happens to the marital home or any jointly owned property. When spouses acquire real estate during the marriage, the property is typically held as tenants by the entirety—a special form of ownership reserved for married couples. In other cases, the property may be held as joint tenants, but tenancy by the entirety is more common.
Under both forms of ownership, each spouse has an undivided interest in the property, and when one spouse dies, the other automatically acquires full ownership. This feature of survivorship ends when the parties divorce, and the property must be divided according to the terms of the divorce settlement or court judgment.
Because the court must divide all marital property and debt in a fair manner, the marital home often becomes a central issue. Whether the divorce is resolved through negotiation, mediation, collaborative law, or litigation, the real property must be transferred appropriately so that ownership is clearly assigned to one spouse—or the property is sold and proceeds divided.
Why a Quit Claim Deed Is Used in Divorce
A Quit Claim Deed is the legal instrument used to transfer ownership rights from both spouses to one spouse alone. It is the document that formally removes one spouse’s name from the title and converts the property from jointly owned to individually owned.
Here’s how the process generally works:
A lawyer prepares the Quit Claim Deed.
Both spouses (or the transferring spouse) sign the deed.
The deed is filed with the recorder of deeds in the county where the property is located.
The filing updates public records and reflects the new ownership.
This deed is essential because it ensures that:
Property records accurately reflect the new owner
The transferring spouse no longer holds legal rights to the title
Future sales or refinancing can occur without complications
Ownership is consistent with the terms of the divorce judgment
Without a properly executed and recorded Quit Claim Deed, disputes or delays may arise later with refinancing, selling, or transferring the home.
A Quit Claim Deed Does Not Remove a Spouse From the Mortgage
A common misunderstanding is that removing one spouse from the deed also removes them from the mortgage. This is not true.
A Quit Claim Deed only changes ownership on the title, not on the underlying debt.
If both spouses signed the mortgage, both remain legally responsible for repayment unless:
The loan is refinanced in one spouse’s name only, or
The lender approves an assumption agreement releasing one spouse from the debt
Mortgage lenders are not obligated to release a spouse simply because of a divorce judgment or Quit Claim Deed. This is why additional steps are needed after the deed transfer.
Why Mortgage Refinancing or Assumption Is Crucial
Divorce settlements often require one spouse to pay the mortgage, especially when that spouse keeps the house. However, if both spouses remain on the mortgage and a default occurs, both can be held liable—even if the decree states only one was responsible for payment.
Consequences include:
Damage to the credit of both spouses
Debt collection actions
Lawsuits and deficiency judgments
In extreme cases, bankruptcy
Because of these risks, many divorce agreements include:
A requirement that the spouse retaining the home refinance within a certain timeframe
A provision that the home must be sold if refinancing is not completed
Conditions for an assumption agreement if the lender allows it
These protections prevent financial entanglement and protect both spouses moving forward.
Why Legal Guidance Matters
The intersection of real estate law, creditor rights, and divorce law can be complicated. A seemingly simple paperwork issue—like failing to file a Quit Claim Deed or neglecting to address the mortgage—can lead to significant problems long after the divorce is final.
At Stange Law Firm, PC, we help clients:
Understand how property ownership is affected by divorce
Complete and record Quit Claim Deeds correctly
Negotiate refinancing requirements and timelines
Avoid financial risk associated with joint mortgages
Ensure settlement terms protect both parties long-term
Proper handling of real estate issues is essential to achieving a clean financial separation.
Divorce Lawyers Assisting With Quit Claim Deeds
If you are going through a divorce where there is a marital home and other property, Stange Law Firm, PC can help. You can contact us online or call us at 855-805-0595.
