Couples in the midst of a divorce are occupied with so many issues during the dissolution of their marital assets that they may not be aware of the consequences of every action taken, and how it can come back to bite them in the future.
A few things to be aware of are:
1. If you are named as a borrower on the mortgage of that property, the Quit Claim Deed will not release your responsibility for the mortgage.
2. You will no longer own the property – but you are still obligated for the debt. Your lender does not care that you signed a Quit Claim Deed.
3. If your spouse (the one who keeps the home) does not make the payments, or allows the home to go into foreclosure, it will damage your credit history and credit score just like you still own it.
How Lawyers Try to Help
To protect the interest of the party who is quitclaiming their interest in a home, lawyers will often include language in the marital settlement agreement that states that the spouse keeping the house is now responsible for any debt or payments after the Quit Claim Deed is filed. Not necessarily so.
There are other options that may work better feel free to contact me today to set up a free consultation.
Dianna Dingman is a licensed Realtor for over 12 years, and is owner of Dingman Property Group at Aviara Real Estate in Westlake Village, CA. Dingman Property Group works with both buyers and sellers of luxury homes. Dianna works with Trust and Family Law Attorneys and Financial Planners consulting with their clients regarding all property matters. Join Dianna at her monthly free lectures, radio &TV shows, tele-classes and special events. For more information or private consultations contact Dianna at
(805) 418-2623 email@example.com
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