There are three important components to marital residence real estate ownership which must be addressed when there is a change of ownership during divorce. A Marital Settlement Agreement can only bind the parties to the divorce so what does this mean to you? Make sure that if you are the party residing outside the marital residence and your interest is being bought out by the alternate party, your name must be removed from the mortgage, note and deed. Often both parties’ names are on the mortgage and deed, but not on the note. Transferring the deed into one party’s name doesn’t remove the alternate party’s name from the mortgage or liability on the property without the lender removing his or her name through a formal process.
To gain a better understanding about real estate and divorce read, “Real Estate Mistakes You Don’t Want to Make in a Divorce.”