What to do about the house:
DIVORCE AND REAL PROPERTY DIVISION
Your home is an extremely valuable asset – and it may be the most valuable asset that you possess. When you divorce, that asset must be split according to the terms of the Court’s Order, or, if you’ve hired an experienced attorney, according to the terms of an agreement reached with the other party through mediation or other means. But how do you go about getting a mortgage and title transferred after your divorce?
Reaching agreement on how property should be divided can be painful, even in an equitable division state like Kentucky. But if you’re diligent, you can get through it with few delays and a minimal amount of stress. As part of that process, here’s what you need to know about transferring the house title as part of your divorce.
A quitclaim deed is a form used to convey property in the State of Kentucky. This type of deed does not provide any warranty as to title. That means that the seller does not provide a guarantee that the title to the property is clear and that there are no other interests in the property. The form is often used for close transactions, such as between divorcing parties who are already in possession of the home. If you have any concerns about what rights to the property you are purchasing, then you, or a title organization, need to complete a title search of the property transfers going back at least 50 years.
There are several laws that govern the transfer of property. Kentucky Revised Statute 382.130 requires that all deeds must be signed in the presence of either two (2) subscribing witnesses or a notary public. Additionally, there must be a consideration certificate attached to the quit claim deed before recording it at the County Clerk’s Office. There is a $17.00 fee to file this document.
Once the quit claim deed is filed and the Clerk’s Office is in receipt of the fully executed deed, the tax assessment roll will be changed with the updated information. There is no charge by the PVA to make this change.
You will need to take additional steps to ensure that you retain the sole interest in (and responsibility for) the house before the quitclaim deed can be executed in the event there is a mortgage on the home. Some couples with a joint mortgage decide to refinance after divorce into one of the spouses’ names. Doing so releases the spouse whose name is coming off the loan from responsibility for the mortgage. However, unless that partner’s name is also removed from the title, they can still benefit from the sale of and equity in the home, so it’s important to not only refinance but also to update the title to reflect one owner. The spouse applying for the refinance can use only their own income and credit score to qualify.
When only one spouse is on the mortgage but both are on the title, completing a quitclaim deed as described above is all you need to do, and refinancing is not necessary.
What if we can’t agree about the house?
In the event that the parties cannot agree on who gets the house, what interest each retains in the marital home, or the spouse who is supposed to retain the house cannot secure refinancing , then you may have no choice but to sell. It may be in everyone’s best interest to get rid of the place, pay off the mortgage, collect their respective shares of the profits and start fresh.
Reczek Chase handles a wide range of family law issues and can assist in resolving these issues before they become adversarial. If you’d like to discuss assets may be impacted by a divorce, you can set up a time to chat with our attorneys by following this link, or calling us at (502)653 7455.
The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information.
