One common point of contention during a divorce case is each partner’s responsibility for paying debts such as a mortgage. In some circumstances, the couple might simply choose the best option is to sell off the house and pocket the profits so that they don’t have to worry about untangling the asset. In other cases, one spouse may take ownership of the house and buy out the other’s interest. In that situation, a quitclaim deed could be necessary.
A person who signs a quitclaim deed forfeits his or her rights and claims to the property, but it does not release him or her from responsibility for the mortgage. In essence, this gives the other party in your divorce full rights to the home, even though your name remains on the mortgage. As such, this means you could still be held accountable for missed mortgage payments, which could have an impact on your credit score.
If there is equity in the property and the party that signed the quitclaim deed is receiving a portion of that equity, there is a version of the quitclaim deed that allows the signing party to reserve a lien on the property until that equity is paid out.
Ultimately, you should speak with an attorney about the best way to transfer real estate during your divorce. For more information, speak with a skilled Minnesota divorce lawyer at Appelhof, Pfeifer & Hart, P.A.
