Quit-Claim Deed in Divorce

 A quit-claim deed ends a person’s claim or interest on a property (grantor). The property transfers to the recipient (grantee). In divorce situations when one spouse receives the marital home, then the other spouse often signs a quit-claim deed to make a clear transfer of it. This does not release responsibility for future mortgage payments for the grantor if both spouses’ names are on the mortgage loan. If the grantee reneges on the mortgage, then the loan company can go after the grantor who signed the quit-claim deed. Often, the grantee is required to refinance the house solely in her name during the divorce proceedings, to prevent this possible scenario for the husband at a later date. If you sign a quit-claim deed in your divorce, make sure your name is removed from any outstanding loan on the property.

When Elena bought her husband out of his share of a house jointly owned with her mother, the divorce lawyers had the husband sign a quit-claim deed. The house was completely paid, so no need for refinancing. Her mother owned a small house out of state, so the lawyers had the husband sign a quit-claim deed on that as well. The husband had no ownership interest in that house, but Elena’s lawyer did not want the husband to try to cause any difficulties post-divorce when the mother died.

When there is a business involved, a quit-claim deed is usually signed in a divorce. This may be when one spouse is buying the other out of a jointly owned company. This action is also done when one spouse’s parents own a business and it needs to be clear that their ex son or daughter-in-law will not be able to lay any claims to it post-divorce. A quit-claim deed prevents trouble down the road after  a divorce.