Quitclaim deeds are used to give away the rights to a property. That being said, a quitclaim deed doesn’t guarantee that no other person has a right to the property or that it is free from claims through other parties.
Quitclaim deeds are normally used during title-clearing actions or transfers of property between family members. For example, it may be used to transfer property after a loved one passes away or you get a divorce.
Since a quitclaim deed doesn’t guarantee that someone does or does not own a property, it’s only useful in a few specific situations. It could be right for you, though.
When would you use a quitclaim deed during a divorce?
If you are going through a divorce, you may need to obtain a quitclaim deed from your spouse if you are keeping your home that is jointly owned. They would sign away their rights to the property through the quitclaim deed, essentially placing it entirely in your possession.
If the home is being passed to someone else in your family, like your child, then you and your spouse could sign away the deed to them with quitclaim deeds.
How does a quitclaim deed impact a person’s mortgage?
This is one aspect of a quitclaim deed that is a little tricky. It doesn’t actually remove anyone’s name from a mortgage or prevent them from continuing to have to pay on the debt. So, simply signing a quitclaim deed won’t stop you from paying a mortgage on your home, even if it’s totally in your spouse’s name now. The only way to prevent yourself from having to make payments is to refinance the loan, pay off the mortgage or sell the property.
Should you have a quitclaim deed drawn up during your divorce?
A quitclaim deed could be a good idea if you’re planning to transfer property, but it’s not always the right option. Some other forms of deeds are available, and there are also other ways to transfer property completely out of each person’s name to relieve them of potential debt as well. This is something to discuss with your attorney before you decide to move forward with this deed.