You can proactively allay your fears and clear upmisconceptions by doing your due diligence and researching what to expect throughout the selling process. Decisions regarding the family home aren’t only emotional, but also mired in legal maneuvers and decisions. Divorce laws vary from state to state, so your licensed legal counsel is your best source of information on how to protect both parties’ interests. Because the house is often a couple’s most valuable joint asset, it may have to be sold in order to equally distribute the marital worth between the two spouses. You should understand the relationship and difference between a mortgage deed and a property title. Mortgages are conditional legal agreements made for buying a property/home. The lender’s security interest is on record when the title is registered. The mortgagee (lender) may obtain a foreclosure order to take possession if payments of the debt are in default. A property title refers to ownership of that property and the right to use it. A person on the title can transfer ownership to another party, but can’t transfer more than s/he owns. Some divorcing couples use a quitclaim deed, which transfers ownership from one spouse to another, but it doesn’t transfer financial responsibility. One spouse may transfer title of the home to the other; however, this doesn’t free that person from the financial responsibility of the mortgage payment. The loan payments are the responsibility of the parties on the mortgage and an action between those persons doesn’t affect the rights of the mortgagor. To change the names on the mortgage, one spouse must obtain financing to buy out the other. All discussions regarding mortgages, quitclaim deeds, and title of property should be conducted with your legal advisor.
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