What Happens when I Fast Deed My House But My Name Is Still on the Mortgage During Divorce?

A significant element of divorce proceeding is division of marital funds, dispersing property obtained during the union, according to”The Entire Divorce Handbook: A Practical Guide,” by Brette McWhorter Sember. A quick or quitclaim deed typically can be used to move an ownership interest in a house in a divorce case. A key consideration is what happens when a partner transfers her interest in the house with a quick deed, but stays about the mortgage.


A quitclaim or quick deed transfers whatever interest one partner has in the real estate fully and completely to the other partner, according to Lawyers.com. The execution of such a deed is performed either through agreement of the parties during negotiations or by order of the judge presiding over the divorce.


A recurring misconception is that the parties to a divorce can assign that partner takes full legal responsibility for your own mortgage. They believe the transfer of an ownership interest with a quitclaim deed to be the first step in the process. In fact, parties to a divorce and the divorce judge lack the power to remove a partner from a mortgage loan. Only the mortgage lender can discharge a partner from legal accountability for your loan, according to”California Real Estate Law,” by William H. Pivar. The court can direct a spouse to apply for financing refinancing, but can’t force the issue when a lender doesn’t approve the change.


If a partner signals within her ownership interest to the other party to a divorce, then the presumption generally is that the spouse that obtains full ownership will be responsible for mortgage payments, but when that partner fails to make mortgage payments, the lender will take legal actions against both the partner with full ownership of the property and the spouse who gave an ownership interest using a quick or quitclaim deed, according to”California Real Estate Law.”


Gains do exist to registering over an ownership interest through a quick deed even when a spouse’s name remains on the mortgage. For example, the partner that no longer maintains an ownership interest, despite being responsible for the mortgage loan, is not liable to taxes on the property. Additionally, he is not responsible if someone is hurt in the residence and sues.

Expert Assistance

Real estate and mortgage issues represent complicated legal issues in many divorce proceeding. A party to a divorce dealing with these kinds of issues typically is best able to protect her rights by hiring an experienced attorney. The State Bar of California and the American Bar Association provide resources to help someone engaged in a divorce case to find suitable legal representation.

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