the distinction between a mortgage and property title is crucial in this process. A mortgage is a financial agreement used to purchase property, with the lender’s security interest recorded on the title. If mortgage payments are not met, the lender can foreclose on the property. A property title signifies ownership rights. A person listed on the title can transfer ownership but cannot transfer more than they legally own. Some divorcing couples use a quitclaim deed to transfer ownership from one spouse to another, but this does not remove financial responsibility. A spouse who signs over their title may believe they are free from mortgage obligations, but unless the mortgage itself is refinanced, they remain legally responsible for payments. To fully release a spouse from liability, the remaining owner must refinance or secure new financing to buy out the other party’s share. All discussions regarding mortgages, quitclaim deeds, and title of property should be conducted with your legal adviser. The intent of this book is to provide information regarding the sale of your home within the framework of a divorce; it is not intended to provide legal counsel or advice.
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