property title. Mortgages are conditional legal agreements made for buying a property/home. Th e lender’s security interest is on record when the title is registered. Th e 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 transfe r fin ancial responsibility. One spouse may transfer title of the home to the other; however, this doesn’t free that person from the fin ancial responsibility of the mortgage payment. Th e loan payments are the responsibility of the parties on the mortgage and an action between those persons doesn’t a ff ect the rights of the mortgagor. To change the names on the mortgage, one spouse must obtain fin ancing to buy out the other. All discussions regarding mortgages, quitclaim deeds, and title of property should be conducted with your legal advisor. SELLING THE HOUSE For most couples going through a divorce, selling the house is the best solution. Selling a home under any circumstances takes a great deal of time and e ff ort, so the addition of the emotional stress of divorce can make the task overwhelming. LEGALITIES Th e termination of a marriage requires the division of real property. Marital property belongs to both parties, regardless of whose name is on the title, and each party is entitled to their equitable share. Some couples have a legal agreement beforehand, 125
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