Deeds, Credit and Divorce
Credit and divorce are two things that go together like a peanut butter and asparagus sandwich. In other words, they don’t. Many people find that they are unable to get credit following a divorce. This short article will examine the credit as it relates to divorce and sort out some tricky issues with deeds.
In order to sort out credit and divorce issues, you should see my article on credit cards. The article you’re reading looks more closely at credit as it pertains to deeds.
If the mortgage is in your name but both names are on the deed, you are in a weird position. You are solely responsible for the finances, but you share the equity. In this case, if you can get the other party to sign a quit claim deed, it would simplify matters. A house purchased during the marriage is community property, so you may need a Judgment to mandate that your ex quit claim the house.
Sometimes a situation arises where you can afford to make payments on the home but refinancing is not possible because of the credit market. In this case, you will need to negotiate a deal with your ex or the house may be ordered sold.
What if an ex is not on title? Why might a realter ask for a quit claim deed prior to the sale of the home? That is because when there is a spouse during the time of ownership, title may be clouded by community interest. The quit claim deed clears title for sale.
Remember, as long as your name is on the mortgage, you have financial liability. As long as your name is on the deed, you must agree prior to a sale. And the community has an interest in any property paid for in whole or in part with community money. That’s the deal with deeds. And now that we’ve dealt with credit and divorce issues, I’m going to go eat a peanut butter and asparagus sandwich.
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