Post Divorce Transfer of Real Estate

The division of real estate assets post-divorce is a significant task that requires careful attention to detail and adherence to the terms outlined in the divorce decree.  

Transferring real estate post-divorce involves two critical steps:

1. The transfer of title, and
2. Handling any encumbrances or loans against the property

First Step: Transfer of Title

This process ensures that the ownership of the property is correctly reflected according to the divorce decree. Here are the specific steps:

1. Review the Divorce Decree
2. Prepare the Deed (quit claim deed or warranty deed)
3. Sign and Notarize the Deed
4. Record the Deed with the Property Office

Second Step: Transfer/Assumption/Refinance of Encumbrances

The second step in implementing the division of real estate post-divorce is handling the encumbrances such as mortgages or home equity loans.

There are a number of common options in this situation:

• Transfer or Assume the Mortgage so it shifts from a joint mortgage into one party’s name alone (continue with the same terms)
• Refinance the Mortgage (new terms) in one party’s name alone
• Both Stay on the Mortgage with Indemnification to protect the non-occupying spouse moving forward

Alternative: Selling the Property

Here are the typical steps to selling a property post-divorce (typically work together on this):

1. Hire a Real Estate Agent
2. Prepare the Property for Sale
3. List the Property
4. Review Offers
5. Close the Sale

Settlement Payments Secured by Real Estate

Addressing a settlement payment in post-divorce real estate arrangements often involves ensuring that the agreed-upon financial compensation is secured and executed effectively.

The divorce agreement should specify timelines and conditions for the payment to ensure compliance and avoid potential disputes.

A lien on real estate can act as a legal safeguard, ensuring that the receiving spouse has a claim to the payment even if the retaining spouse defaults.

If you need assistance, consulting with a real estate attorney or financial advisor can provide valuable support during this process.