When changing the ownership of a marital home from joint to sole ownership or from sole ownership to the other spouse, it is important to use the correct transfer deed. The most commonly used transfer deed is a quit claim deed, yet this provides the least protection to the receiving spouse. A quitclaim deed does not offer any warranties, and therefore the grantee has little to no recourse against the grantor if a problem with the title arises in the future. This type of deed is commonly used to transfer ownership between people who are related, such as spouses, ex-spouses, or other family members. The grantor is the person who is transferring a stake in the property to another person, and this type of deed only transfers the legal rights to a property, if any exist.
Debt During Divorce: Dealing with Deed, Decree, and Debt
Why is a Quitclaim Deed Important?
A quit claim deed transfers real property as a gift. As such, it is not recorded in a court or county office and is not part of the public record. It cannot be used to clear up title issues, and it provides no protection to the recipient of the title, or the property is found to be defective.
Why is a Warranty Deed Important?
A warranty deed provides the person who receives it protection from the grantor. The warranty deed, which can be used to transfer property between family members or unrelated people, is recorded in a court or county office, is part of the public record, and can be used to correct title problems. It is also used as evidence to support a claim against the grantor if a problem arises.
The decree is the final judgment of divorce. It contains the terms of the divorce and exactly how the property will be divided between the two parties. In most cases, this will include a property settlement as part of the divorce, and this will include the assignment of certain items of property to each party. The property settlement can include an assignment of certain items of personal property, including vehicles and even business assets.
What Happens to the Debt?
The debt is something that needs to be divided between the two parties, regardless of whether or not the debt is related to the marital home. The debt is to be divided in accordance with the property settlement. If there is no property settlement, the debt will be divided according to the court’s discretion.
Work with an Experienced Mortgage Professional
There is a lot to consider when going through a divorce or a property settlement. If you have a mortgage, you will owe the mortgage company money on loan. If the property that you stand to receive includes a mortgage, the loan will need to be paid off, and the property will then belong to you. The debt is typically not transferred to you automatically. This is something that you will need to work out in negotiations with your spouse. If you cannot agree, it is something that the court will decide.
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