If the divorce agreement involves the transfer of the house, this can be accomplished using a document called a quitclaim deed. Using this agreement is the most typical and common way of transferring house ownership after the divorce.
A quitclaim deed is typically used in those cases in which the two persons are closely related to each other. These are not used in typical buying and selling agreements.
In the quitclaim deed, the spouse whose name is being removed from the house title basically quits his claim, or gives up his claim to the title or ownership of the home. Besides, as part of the deed, the spouse giving up ownership will pay a certain amount of money or any other item of financial value to the spouse who is giving up his claim to the home.
If you are the one who is giving up your right to the marital home, decide how much you want to be compensated for this transfer of house ownership. There are also tax consequences that may be involved, and it’s important to discuss these with a divorce lawyer in Colorado, as well as tax-professionals before you go ahead with the quitclaim deed.
The quitclaim deed will require a number of details, including the legal description of the home, the exact address of the property, and the amount of the valuable consideration, or the amount that you will expect to receive in exchange for transferring house ownership. The agreement must be signed in front of a notary public.
The house is typically one of the most expensive assets up for division in a divorce, and any agreement that you and your spouse come to regarding the house must be based on very extensive thought and discussion. Remember, there are tax considerations as well as other long-term financial implications of house ownership transfer. Discuss these with a Colorado divorce lawyer.
This article is for informational or entertainment purposes only and does not constitute tax advice and does not establish a lawyer – client relationship.