Real Estate & Divorce Blog: The Role of a Quitclaim Deed in Divorce Property Transfers

Divorce is already a complex and emotional process, and when real estate is involved, it adds another layer of difficulty. One of the most common tools used in divorce-related property transfers is the quitclaim deed. But what exactly is a quitclaim deed, and how does it impact your real estate during a divorce?

What Is a Quitclaim Deed?

A quitclaim deed is a legal document used to transfer ownership interest in a property from one person to another. Unlike a warranty deed, which guarantees a clear title and protects the new owner against claims, a quitclaim deed simply transfers whatever ownership interest the grantor (the person giving up rights) has in the property—without guarantees.

This type of deed is commonly used in divorces because it provides a quick and simple way to remove one spouse’s name from the property title when one partner is keeping the home.

How Does a Quitclaim Deed Work in Divorce?

In a divorce, a quitclaim deed is typically used in three key scenarios:

1. Transferring Sole Ownership – If one spouse is awarded the home in the divorce settlement, the other spouse signs a quitclaim deed to transfer their ownership interest.
2. Refinancing the Mortgage – If both spouses are on the mortgage, the spouse keeping the home should refinance the loan in their name alone. The quitclaim deed only removes a name from the title, not from financial responsibility for the loan.
3. Clearing Up Title Issues – If ownership of a property is disputed or unclear, a quitclaim deed can clarify that only one spouse holds the title moving forward.

Important Considerations Before Signing a Quitclaim Deed

While quitclaim deeds are useful, they come with risks. Here’s what divorcing spouses should keep in mind:

• A Quitclaim Deed Does Not Remove Mortgage Liability
  Many divorcing spouses assume that signing a quitclaim deed means they are no longer responsible for the mortgage. This is false—if both names are on the mortgage, both remain financially liable until the loan is refinanced or paid off.

• There Are No Title Guarantees
  A quitclaim deed does not guarantee that the property has a clear title. If there are any liens or claims against the home, the spouse receiving the property could inherit those issues.

• Tax Implications
  Property transfers due to divorce are generally not taxable, but it’s always wise to consult with a tax professional to understand any potential implications, especially if the property is later sold.

How to Properly Use a Quitclaim Deed in a Divorce

To ensure a smooth and legally sound transfer, follow these steps:

1. Review the Divorce Settlement Agreement – Confirm that both spouses understand the terms of the property division before signing.
2. Prepare the Quitclaim Deed – Work with a real estate attorney or title company to draft the document properly.
3. Sign in Front of a Notary – Quitclaim deeds must be signed and notarized to be legally valid.
4. File the Deed with the County – The signed and notarized deed must be recorded with the county clerk’s office where the property is located.
5. Refinance the Mortgage (if applicable) – If both spouses are on the mortgage, the spouse keeping the home should refinance to remove the other spouse from financial responsibility.

Final Thoughts

A quitclaim deed can be a valuable tool in a divorce property transfer, but it’s important to understand its limitations and risks. While it quickly removes a spouse’s name from the title, it does not affect the mortgage or guarantee a clean title. Consulting a real estate attorney and financial professional is the best way to ensure a legally sound and financially wise transition.

If you're navigating a divorce and need guidance on selling or transferring your home, I can help make the process as smooth as possible. Reach out today for a consultation.