Avoid This Landmine When Quitclaiming Your Home in a Divorce
Divorces can create a whirlwind of emotions, paperwork, and tough decisions—throw in a shared home, and it can get even messier. For many couples during a divorce, one of the spouses wants to keep the house for stability (especially if kids are involved), while the other just wants out. Many attorneys might recommend a quitclaim deed. Many people view a quitclaim deed as a quick, low-cost way to transfer ownership from one ex to the other. It sounds straightforward—sign the form, file it with the county, and boom, you're off the title of the house. Wait just a minute…
But here's the catch: a quitclaim deed only addresses the deed. It does nothing to the mortgage. If both names are on the home loan, the departing spouse is still legally on the hook for payments, even after handing over the keys. This mismatch between ownership and liability creates a nightmare scenario that's all too common during divorces.
Consider these 3 potential problems BEFORE you quitclaim your ownership during a divorce:
#1. You are still on the mortgage even though you deeded away your legal interest in the home.
#2. What will you do if your ex-spouse decides they are going to stop paying on the mortgage? Think about your credit score!!!
#3. What if you want to buy another home while you are still on your mortgage with your ex-spouse? That previous mortgage and the monthly debt will count against you when you try to buy another home.
What’s the solution!!! Either sell the home or insist on them refinancing or obtaining their own loan (without you) and make 100% certain that your current mortgage is being paid off BEFORE signing the quitclaim deed over to them. This typically only works if your ex-spouse can qualify for the new mortgage without needing your income to qualify for the loan.
This post isn't legal advice. My opinion is based on my nearly 40 years of real estate experience helping divorced clients, their attorneys and working with judges relating to the sale of people going through divorces. Are you going through a divorce or dissolution? I am happy to help you sell your Central Ohio home and I can be reached at 740-397-7800.
Contact Sam Miller of The Sam Miller Team at REMAX Stars Realty 740-397-7800 http://www.SamMillerSells.com
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