What Is A Quit Claim Deed And Why Is It Needed in Some Divorces?
In many divorce actions, a husband and wife own a home or property jointly. When husband and wife own property jointly, it is usually held by tenancy by the entireties. In some instances, a husband and wife could own by property as joint tenants, but tenancy by the entireties is much more common. Either way, when either spouse dies, the other spouse gets full ownership of the property.
When parties divorce, the court has to divide all marital property and debt in a just manner. This includes the marital home and any real property that the parties both own.
Whether a divorce is resolved through settlement, including mediation or collaborative law, or through a trial in a litigated case, the marital home and any other real property owned by the parties has to be divided. This is generally accomplished through a Quit Claim Deed. A Quit Claim Deed is used to transfer the joint ownership into sole ownership. More specifically, the Quit Claim Deed removes one spouse’s name from the title. The document is prepared by a lawyer. It is then filed with the recorder of deeds in the county where the property is located.
This is to be differentiated through the mortgage on a marital home or real property. To remove one spouse’s name from the mortgage, a refinance or assumption is generally needed. A Quit Claim Deed does not remove a party from a mortgage.
In some cases, a divorce settlement or judgment might require one spouse to simply pay the mortgage. But if the other spouse’s name is not removed, and there is a default, a judgment can be entered against both spouses. When this happens, parties may have to consider bankruptcy is the debt cannot be paid.
This is why a refinance or assumption agreement can be critically important in many cases, including a deadline for this taking place, or else the property has to be sold.
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.
