protect marital properties. An automatic temporary restraining order prohibits spouses from selling, transferring, or borrowing against the property when a divorce is filed. Again, any orders should be discussed with your attorney, as this protection varies from state to state. The family home is typically a couple’s most valuable joint asset and must often be sold to distribute its value equally between the two spouses. Therefore, you need to understand the relationship and difference between a mortgage deed and a property title. Mortgages are conditional legal agreements made to buy 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 cannot transfer more than they own. Some divorcing couples utilize a quitclaim deed, which transfers ownership from one spouse to another, but it does not transfer financial responsibility. One spouse may transfer the home title to the other and consider himself or herself free from the mortgage payment's financial responsibility, but this is not the case. The loan payments are the responsibility of the parties on the mortgage. To change the names on the mortgage, one spouse must obtain financing to buy out the other. All discussions regarding mortgages, quitclaim deeds, and the property title should be conducted with your legal adviser. This book intends 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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