In the event of divorce, marriage, or a non-sale transfer of a home, there’s the question of what to do with the mortgage. Whether you need to release an ex-spouse from their interest in the property, add a new spouse’s name, or transfer the property to a family member, you’ll need to file what’s called a quitclaim deed.
A quitclaim deed is a deed that releases a person’s interest in a property. Quitclaim deeds are different from general or special warranty deeds in that they contain no warranties of title.
Warranties of title guarantee that a party has the right to transfer a property and that an ex-spouse or agencies like the IRS has no claim to the property. You are legally protected if the individual removed from the property title tries to make a claim on the property.
Quitclaim deeds have no impact on mortgage obligations. They merely remove your name from the deed.
Say you’re getting divorced, and it’s decided your ex-spouse gets the home. If your name was removed from the deed without also being removed from the mortgage, you can still be held responsible if your ex-spouse doesn’t make payments. If you find yourself in this situation, talk to your lawyer to review your divorce agreement and see if an indemnity clause was included.
You can generally draw up a quitclaim deed or use a template like a property deed. However, it’s recommended that you have a lawyer present so you don’t accidentally sign any of your rights away. It’s also recommended that you talk to your lender to discuss who will be responsible for the mortgage.
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