transfer of mortgage in a divorce

• Child Custody and Support

How to Transfer a Mortgage During a Divorce

By Beverly Bird

Keith Brofsky/Photodisc/Getty Images

As much as you might like to simply sign your name and walk away from your mortgage if your ex gets the house as part of your divorce, it's unlikely the lender will allow you to do so. Mortgages typically aren't transferable, at least not without a lot of red tape. You likely don't have to be locked into the obligation for life, however.

Your Ex Can Refinance

Refinancing is the most common way for spouses to transfer liability for a mortgage into one spouse's name after a divorce. Refinancing involves qualifying for a whole new mortgage that pays off the old one, and it may not be possible for your soon-to-be ex to do this if she doesn't have the necessary credit history and income. She can count alimony and child support as income under certain circumstances, but she may not actually begin receiving this until your divorce is final, and typically she must show some history of receiving timely payments.

An added complication arises if there's equity in the property – it's worth more than the mortgage loan against it. Courts consider this equity to be a marital asset. One way to buy out the property's equity is to refinance for more than the existing mortgage balance. Your ex could then make a cash payment to you at closing. This usually results in an increased mortgage payment, however, and she may not be able to handle the added expense on her own. If you have sufficient other marital property, she can give up an asset equal in value to your share of the equity.

Some Mortgages are Assumable

If your ex can assume the existing mortgage, the arrangement comes close to transferring it into her sole name. Not all loans are assumable, however, although VA and some FHA loans generally are. Otherwise, the decision might come down to your lender. Your ex must apply to assume the mortgage, which is similar to applying for a refinance. If approved, she effectively assumes your share of the liability and your name is taken off the loan. The mortgage account remains the same, with the same interest rate and other terms.

Selling the Property

If the mortgage isn't assumable and your spouse can't refinance, the other way to remove your liability for the mortgage is to sell the property, paying the loan off with the sale proceeds. Your divorce decree does not bind your creditors – it's a lawsuit between you and your spouse and no one else. Therefore, your lender isn't obligated to look only to your ex for payment if she keeps the residence as part of your divorce. If she defaults on the payments, you're still responsible for them.

Living With the Mortgage

As a last resort, you might want to continue co-owning the property with your ex, even after your divorce is final. Your spouse might stay in the residence and take on responsibility for the mortgage. However, the open loan will still appear on your credit report and this could prevent you from qualifying for a new mortgage of your own. If your ex doesn't make the mortgage payments, your credit is marred just as hers is and you're just as liable for making the payments yourself. If your divorce isn't somewhat amicable, you could have a years-long nightmare on your hands, dealing and haggling with your ex over payments. This solution might only be worthwhile if you have children and don't want to make them move, and there's no other way to get the mortgage into your ex's sole name.

• Bankrate: Breaking Up the Mortgage After Divorce
• Equitable Mediation: Navigating the Mortgage Process During a Divorce
• Morgan Law Firm: How to Deal With a House in a Divorce
• Bankrate: Assumable Mortgage – Take Over Seller's Loan

Beverly Bird has been writing professionally since 1983. She is the author of several novels including the bestselling "Comes the Rain" and "With Every Breath." Bird also has extensive experience as a paralegal, primarily in the areas of divorce and family law, bankruptcy and estate law. She covers many legal topics in her articles.

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Should you refinance your home after divorce? Here's what happens to your mortgage after untying the knot

Your home is usually your largest asset, and splitting it amid separation could be a headache..

Unless protected by a trust or a prenuptial agreement , all property accrued during a marriage is considered part of a marital estate , or joint property between spouses. This includes your mortgage . 

CNBC Select spoke with divorce expert Amy Colton , a Texas-based Certified Divorce Financial Analyst® and founder of Your Divorce Made Simple , about all things mortgage when untying the knot . 

What we'll cover

• What happens to a mortgage after a divorce
• Should you refinance your mortgage after a divorce?
• How to split home equity with an ex

Tax implications of selling your home after a divorce

• How assuming a mortgage can affect your credit score

Bottom line

What happens to a mortgage after a divorce .

A house is usually the largest asset that a couple has, and thus, it should be one of the first joint properties on the chopping block. 

Divorcing couples have several options for dealing with their marital home. They could:

• Sell the home and split the profits
• Maintain the mortgage jointly and use the house as an investment property
• Relinquish the mortgage to one party

"And if they decide that one party is going to keep it, then they've got to look at 'Can they afford it?'" Colton says. 

Assess your monthly budget and determine if you can realistically afford the mortgage on your own, Colton stresses. A partner who remains in the home will also be responsible for additional housing costs like maintenance and property taxes . The 28/36 rule is a common financial benchmark that advises homeowners to spend less than 28% of their gross monthly income on total housing costs and less than 36% of their gross monthly income toward debt (including a mortgage). 

A partner who stays in the home will likely have to requalify for the mortgage , and the lender will require the borrower to prove that they can afford the home alone. 

Deciding what to do with the mortgage is usually the easy part. Many soon-to-be divorcees think that splitting a mortgage just requires a trip to the courthouse and a couple of signatures, but it's relatively complex. Selling the home is usually the simplest way to wipe your hands clean of the mortgage and your ex, says Colton. 

If one partner wishes to stay in the house, you will need to retitle the property before you alter the mortgage. The partner relinquishing the house must sign a quitclaim deed to remove their name from the title. Only then can the mortgage be resolved. 

Should you refinance your mortgage after a divorce? 

Divorcing couples with joint mortgages may choose to remove one of their names from the mortgage, leaving the other as the sole remaining borrower . There are two ways to do this: refinancing or assuming the original mortgage. 

Many post-2008 mortgages do not allow simple mortgage assumptions (removing your co-borrower's name from an existing mortgage). So, refinancing the home in one person's name is the likeliest way to assume a mortgage. 

Refinancing is beneficial if interest rates have gone down since you closed on the house, and often, divorce decrees require the home to be refinanced within a certain time frame, Colton explains. However, mortgage rates have been soaring , meaning your monthly payments could go up significantly if you refinance now.

Luckily, you don't have to refinance immediately after a divorce and divorcing couples sometimes reach other agreements that don't require refinancing at all. Keep in mind, in order to refinance, the spouse keeping the home will have to qualify for the new loan based on factors like their own income and credit score.

How to split home equity with an ex 

Your home's equity is the difference between the current market value of your home and how much you owe on your mortgage. The division of home equity will likely be spelled out in a divorce agreement, and it can yield a useful supply of cash to help each of you settle. 

For example, if your home is valued at $1,000,000 and you owe $500,000 on your joint mortgage, then there is $500,000 of equity in the home, and you and your partner each have $250,000 in home equity, assuming your equity is split evenly. 

"If I'm going to buy it, I've got to give my husband $250,000 from somewhere else," Colton explains. "Do we have assets from somewhere else that I can give him that qualify?" 

You could do this by turning your home equity into cash. To do so, you'll need to take out what's known as a cash-out refinance . This type of loan replaces your original mortgage with a bigger loan, and you are given the cash difference. 

CNBC Select has reviewed dozens of mortgage refinance lenders , most of which offer cash-out refinances , and named Rocket Mortgage as the top choice for cashing out full equity. While most lenders only allow homeowners to cash out 80 to 90% of their home's equity, Rocket Mortgage allows refinancing borrowers with a minimum FICO score of 620 to cash out 100% of their equity. This could give you access to more cash to pay out your ex. And if you're in a hurry to refinance, Rocket Mortgage offers a fast, online pre-approval process. 

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Home sales are subject to certain federal and state taxes . If you are married and filing jointly, you can sell your primary residence exempt from capital gains tax on the first $500,000 of equity. In contrast, if you get divorced and file as a single, only the first $250,000 of equity is exempt from capital gains tax. 

So, for example, if you bought your home for $500,000 and it's now worth $1,000,000, you have $500,000 in home equity. If you and your spouse split but sell the home before your divorce is final, Uncle Sam will likely let you off scot-free. If you and your spouse divorce, and then one party sells the home as the sole owner, they'll be slapped with a $40,000 tax bill. 

Colton says this is one of the most common mistakes she sees in divorcing couples. 

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How assuming a mortgage can affect your credit score 

Missing payments or falling delinquent on any mortgage or loan can severely harm your credit score . On the flip side, making on-time loan payments boosts your credit score .

If you and your ex decide to jointly maintain a mortgage, whether as an appreciating investment or to use the home as a rental property, both of you are liable for negligent payments. So, if your ex misses several payments, even if you correctly pay your share, both of your credit scores will suffer. Similarly, failure to pay the mortgage could lead to default and eventually foreclosure. 

"It's not just mortgages," says Colton. "It's also joint credit cards. Anytime a bill doesn't get paid, you're on the hook for it."

Using a credit monitoring service can help you keep an eye on your credit score with little stress. Experian offers a free credit monitoring service that sends you real-time alerts of any changes to your credit report , making you aware of any missed payments in a timely manner. 

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Credit bureaus monitored, credit scoring model used, dark web scan.

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"It's really important to monitor your credit rating during the divorce process to make sure you don't get zinged," added Colton. 

Dividing home ownership is relatively difficult. By amicably weighing your options, creating a post-divorce budget and working with a financial professional, you and your ex-to-be can make calling it splits easier on the wallet.

Money matters —  so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox.  Sign up here .

Meet our experts

At CNBC Select, we work with experts who have specialized knowledge and authority based on relevant training and/or experience. For this story, we interviewed divorce expert Amy Colton, a Texas-based Certified Divorce Financial Analyst® and founder of Your Divorce Made Simple.

Why trust CNBC Select?

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every personal finance guide is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of personal finance products . While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

Catch up on CNBC Select's in-depth coverage of  credit cards ,  banking  and  money , and follow us on  TikTok ,  Facebook ,  Instagram  and  Twitter  to stay up to date.

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Home and Mortgage in Divorce: The Definitive Guide

Ross Garcia, CDLP

There are certain “hot button” issues in divorce that can have a significant impact on your life after divorce.

The common list of hot button issues includes things like child custody, spousal and child support, and the division of assets.

The division of assets extends far beyond your bank accounts, retirement plans, business interests, and personal property.

What other BIG assets might fall under this category?

You guessed it … the family home!

The process for splitting up the home can be both complicated, and (not surprisingly) contentious too.

This guide is aimed at helping you make sense of it all.

We’ll walk you through your options, the process, and everything in between that you should know to help you make an informed decision on the all-important question:

What happens to the house in divorce?

Let’s jump in.

• Options for your home and mortgage in a divorce
• How do you determine your share of the equity
• How to split your house when there’s a mortgage
• What steps should you take to sell your house during divorce
• Options for determining the value your house in a divorce
• What to do when you can’t “divorce” the mortgage
• How to refinance your mortgage
• Reasons to refinance
• Assuming your mortgage
• Refinancing costs
• Real estate deeds used in divorce
• Getting help from professionals

Options for Your Home and Mortgage in a Divorce

There are several choices for settling the home and mortgage in your divorce settlement.

Preparing for these options in advance will give you the best chance for a successful, amicable outcome.

Here are some primary options that you might consider:

Option 1 – One spouse keeps the house, and buys out their spouses share of the equity

For a variety of financial or emotional reasons, one spouse or the other may decide they want to keep the home.

The best way to do this is for the occupying spouse to refinance the home in their name only and with just their income.

The question then becomes, does this spouse qualify? If so, how much does this spouse qualify for? More on this later.

What if they want the family home but I don’t?

If you are the spouse giving up rights to the home, it is imperative that your name not only be removed from the title, but from the mortgage as well.

Don’t overlook this important distinction when weighing your housing options. Most people mistakenly see title to the house and the mortgage as one in the same.

They are not.

While the primary question at your settlement discussions may revolve around what to do with the marital home, the underlying question to ask is what can and can’t be done with the marital mortgage.

Start there, and work backwards.

Until this happens, you and your spouse are both liable for the full mortgage payment each month.

Imagine a scenario in which your ex misses a payment, loses their job, becomes disabled or dies. Do you think you’ll still be on the hook for the mortgage payment even though you are no longer on title to the property?

And if you don’t make the payment yourself and allow the debt to grow in delinquency, your credit is going to be severely damaged as a result.

Credit blemishes can take years to repair. Poor credit can impact your ability to get a loan in the future for things such as houses, cars, business loans, etc.

Another consequence of leaving the mortgage unaddressed is that the mortgage debt (even if you are no longer required to make payments) can prohibit you from being able to qualify to buy another home after the divorce.

For example, imagine the house is awarded to your spouse in the divorce. The mortgage was left untouched, in other words, both of your names remain linked to it. However, you feel protected because the settlement agreement assigns all debts associated with that property (including the mortgage) to your ex-spouse who is presumably still residing in the home

It’s now your turn to go out and buy a home so you can begin to establish your own new life. You apply with a bank lender and the lender tells you that you don’t qualify because your debt is too high in proportion to your income.

How can that be?

Remember that mortgage that you left untouched after the divorce?

Well not all lenders will honor your legal assignment of debt. This means they may still want you to qualify using debts on BOTH properties simply because the old loan shows up on your credit report.

Some lenders will honor the legal assignment of mortgage debt, and that’s a positive. However, it’s not something you’ll want to leave to chance.

Being aware not just of the options available, but also the pros and cons and each strategy are an important piece of the puzzle.

The earlier you can assess these questions, the better your chances of resolving them in a quick and efficient manner.

Option 2 – Retain co-ownership of the home, set a deferred sale date

As you might guess, this is not an especially popular option especially given the advice provided earlier.

This option doesn’t necessarily mean that the two of you are going to continue to live in the house together. Although, some couples do manage to find a way to peacefully co-exist under one roof while going through a divorce.

The choice to co-own the house for a specific period of time following the divorce could be for a number of valid reasons:

• Kids are going off college in X number of years
• Impact of capital gains and other taxes related to a sale
• The retaining spouse is unable to qualify for a loan in their own name
• The housing market is at a peak, and you are waiting for it to cool off before moving elsewhere
• Or simply because the property is just too valuable of an investment to let it go.

A residual benefit to this strategy is that you can both share in the appreciation of property value during this period of time.

Also, to the extent that you both continue to share in the property expenses (mortgage, property tax, homeowners insurance, etc), this could be a cheaper option and a way to improve your individual cash flow as opposed to carrying the load all by yourself.

Did you know in a co-ownership scenario, you could also choose to rent the home?

If you’re delaying the sale of your home, this is another legitimate option.

The obvious benefits of having additional income in the short term should come as a welcome relief.

Renting the home to others does come with its own special set of challenges and if you do decide to go this route, it might be wise to engage the services of a property management firm to avoid the possibility of conflicts between you and your spouse.

You might be thinking of this rental income strategy as a way to generate additional income to show on your mortgage loan application. Lenders only allow this in a limited number of circumstances.

Simply put, lenders will not include rental income on a property that you are claiming to be your “primary residence”.

The only exception to this rule is if the rental income is generated from a detached accessory unit, such as a cottage. A bedroom in the same house you live in doesn’t count.

The rise of Airbnb and short-term rentals has added another layer of complexity to lending guidelines, so be sure to run your specific scenario by a qualified divorce mortgage advisor.

An alternative strategy when co-owning after divorce is to request a deferred distribution.

A deferred distribution is when the court agrees to divide up the equity in your house at a later date.

This option still provides stability for any children in the home, with orders not to sell the home until the youngest child turns 18 or goes off to college. At that point, the home must be sold.

The division of equity would then be based on the new value of the property at that point in time, and not based on any fixed value from a prior date.

This is a common approach when housing markets are soft and couples want to have the opportunity for increased profits from the sale of their home at a later date. By selling the property now at an unattractive price, there could be a large amount of gains from a future sale that are left on the table.

Similar to a deferred sale, with deferred distribution the court usually requires both spouses to share in expenses that will include mortgage payments, taxes, home owner’s insurance and maintenance costs.

Option 3 – Sell your home.

The final option – selling your home.

This might be a last resort for most. For others, it might be the only option.

One thing is for certain in a sale – both spouses will ultimately receive the share of the (equity) proceeds that they are entitled to.

These funds can be put to good use afterwards, and can help either or both spouses successful land on their feet following the divorce.

As with all decisions surrounding the home and mortgage, selling your house can have a large financial impact with items including capital gains taxes, exclusions, mortgage prepayment penalties, etc.

There are other downsides to selling your house, especially if you don’t want to:

For one, there may be deep and emotional ties to the home, especially if you have been in it for several years and have raised a family under that roof.

These emotional impulses can lead to knee jerk reactions, and poor decisions about what the “best” option truly is.

Be sure that you are selling your house for the right reason, and not just to please your spouse or even worse, force a sale out of resentment.

What if our mortgage exceeds our home’s value?

Another unique challenge to selling the house in divorce has to do with the current mortgage balance in proportion to the current property value.

Have you ever heard of the term “underwater”?

This is when the current mortgage balance exceeds the current property value. In this case, a short-sale might be the only option.

A short sale is when the property is sold for less than the current balance of the outstanding debt. This leaves the lender or creditor with a loss due to the fact that they can’t recoup the entire amount of the loan balance.

You’ll want all of the lien holders or creditors to agree to accept to less than the total amount owed, otherwise you could be left with an outstanding balance that you could be required to repay even after the sale of the home.

In difficult times, some homeowners in divorce may need to resort to other means for disposing of the house.

Resolving these challenges gets a bit trickier when neither client is in a financial position to afford to keep the property AND there is little or no equity remaining in the property at the time of the divorce settlement.

In these cases, you may need to resort to things such as a loan modification. Or, to take it a step further the alternatives could also be: foreclosure, deed-in-lieu of foreclosure, bankruptcy.

While we won’t touch on topics such as foreclosure and bankruptcy in this post, it’s important to know all of the tools available to you in settling your real estate issues.

At the end of the day, it’s imperative that you retain professional help to sort these options – the pros and the cons – the dos and the don’ts.

If you don’t trust your spouse, and you don’t have enough information to make the right decision for one of the biggest decisions of your life, then you need to consult with trained professionals.

Whether this is a family law attorney, Certified Divorce Financial Analyst , CPA, or divorce mortgage specialist, you need to determine all the possibilities available to you, and ONLY THEN can you make a good decision.

We have a popular saying that goes, “First determine what’s POSSIBLE , then determine what’s PRUDENT .”

Under no circumstances should you finalize your divorce until your home and mortgage considerations have been addressed, analyzed, and carefully planned for.

How to determine your share of the home equity

Property division in divorce rests on several factors.

First, you need to find out whether you live in a community property state or equitable distribution state.

Then, you need to understand the difference between separate property vs. community property (or marital property).

Some states are considered community property states which means that all assets acquired during marriage are divided equally. This holds true for your house, as well as rental properties, investment accounts, pension plans, business interests and so forth.

However, this does not always mean you will get 50% of a home’s value when you divorce.

It may be possible to trade off the value of the home in exchange for greater or lesser interests in other community assets, with the net effect still being a 50-50 split.

Again, the amount of money you stand to receive as part of the division of assets will depend on the State you reside in, and the classification of marriage assets (i.e. are they classified as “community property”).

Separate property generally refers to assets acquired before marriage or after separation. It also includes assets acquired during marriage by gift or inheritance.

For example, if you own and home and you then get married, the house would be considered separate property, at least initially. But if both spouses begin contributing to the house either through mortgage payments, or if the house is re-titled to include the other spouse, then it converts to community property and will be split as such in the event of a divorce.

The timing of when something converts to community property from separate property is usually a hot button for clients in divorce, and homeowners in particular.

Separate property can also be an inheritance received by a either husband or wife during a marriage or any gift given to either during the course of a marriage, including real estate.

To prevent separate property from becoming community property, a spouse should take steps to keep the asset separate through individual bank accounts and other measures.

For example, if you own a house prior to divorce and you intend to keep this as separate property throughout the marriage – do not add your spouse to title. In CA, the property becomes community property at that point in time.

Settlements in equitable distribution states do not require a 50-50 split, but courts require that a split should be both fair and equitable.

Several factors are taken into account in equitable distribution states, including:

• The financial situation of each spouse
• The length of marriage
• The age and physical/emotional state of each spouse
• The income and earning potential for each
• The needs of the custodial parent to maintain any children’s lifestyles

And the list goes on.

What if the home is in the name of one spouse only?

Again, it first must be determined if your home is community property or separate property.

If you acquired the home before marriage and kept the financial aspects of the home separate, you can strengthen your case for separate property, but your spouse may be able to make the case that they contributed to paying for the home and thus are entitled to the equity as well.

This case is strengthened in a long-term marriage. However, if the house can be proven to be separate property (much easier to prove in a gifted or inherited property) then the spouse owner will retain the home.

In cases where there is a dispute, a spouse can block the sale or transfer of the house until a judge decides how to divide the property.

A spouse can also file a lis pendens.

A lis pendens is a notice (much like a red flag of sorts) that warns the public of a lien that has been placed on the home. It is recorded in the register of deeds in the county clerks office where the home is located.

This lis pendens (or red flag) is not removed until after an appropriate legal ruling, such as a final divorce decree. Lis pendens laws vary by state so it is best to check what applies in your particular jurisdiction.

What if the home is in the name of both spouses?

If the home is in both names, then in a community property state, both spouses will share equally in the division of the home as an asset.

There may be some give and take regarding what portion each spouse is entitled to when including the division of other assets, but in general, a 50-50 split is the rule.

Again, your family law attorney or other qualified divorce professional should be able to walk you through the division of assets and the expectations for what you are entitled to, in addition to what the court may be inclined to order.

In equitable distribution states, courts will attempt to determine what is fair & equitable for dividing up the home, but other factors including each spouse’s earning potential, the length of the marriage, physical and emotional considerations, the needs of the custodial parent and other similar factors will have an impact on how the home is apportioned.

How to split the property when a mortgage is involved

If your house has a mortgage, that can present some additional challenges.

Here are some common questions that come up regarding the mortgage in divorce:

Can I Remove my ex’s name from the home and mortgage?

First, you need to understand that removing a spouse from the home (aka title transfer) and removing them from the mortgage (aka refinance) are two completely separate tasks.

Many look at title and mortgage as being one in the same.

They are not .

Can I remove my ex’s name from title?

Yes. In fact, in instances where one spouse has agreed to take over the house as part of the divorce settlement, it may be wise to have the former spouse’s name removed as quickly as possible so that they legally won’t get any of the proceeds if you sell the property or inherit it if you pass away.

From the former or departing spouse’s perspective, they are inclined to have their name removed from the existing mortgage too.

Removing one party from title does not remove them from the current mortgage lien, assuming the loan is in both of your names.

The title transfer is accomplished through a simple grant deed or interspousal deed. The same cannot be said for the mortgage, which requires one spouse to qualify to inherit the mortgage debt on their own.

Does the departing spouse, or out-spouse, want to be associated with the ex-spouses mortgage for presumably the next 30 years (or remaining term on the mortgage)?

The answer may be yes or no depending on your tolerance for risk.

What are the risks of not removing the departing spouse (out-spouse) from the mortgage?

There are a couple different ways to look at this. The two primary considerations for the out-spouse are:

Will it damage my credit if my ex-spouse misses a mortgage payment?

• If I want to buy a new home, will the old debt prevent me from qualifying?

The first question is a credit issue, while the second question is a loan qualifying issue.

The divorce settlement agreement might state that the retaining spouse (the in-spouse) is responsible for all mortgage and housing expenses.

The agreement might also state that the out-spouse is indemnified and held harmless of any and all responsibility for those housing obligations.

To hold harmless is defined as: “To absolve another party from any responsibility for damage or other liability arising from the transaction.”

To indemnify is defined as: “ To reimburse another party for a loss suffered because of a third party’s or one’s own act or default.”

Given this information, let’s look back at the two primary considerations again:

The short answer: Yes.

Unfortunately, the credit bureaus do not care which party the property was assigned to. The only thing the creditor cares about is getting repaid.

If you are co-signed on a mortgage with your ex-spouse, from the creditors point of view you have agreed to keep up timely payments.

In the event that a payment is missed, this will be reported directly to the 3 credit bureaus. The 3 credit bureaus are Experian, Transunion, and Equifax.

These companies are responsible for reporting your credit history and generating an applicable FICO score (aka credit score). Upon notice of a delinquent mortgage payment, this delinquency is immediately reported on BOTH of your credit reports.

Therefore, neither party is granted any immunity from the original promissory note that they signed together.

If I want to buy a new home, will the additional debt prevent me from qualifying?

The answer to this question can vary from lender to lender.

In most circumstances, a lender looking at a mortgage application is usually able to exclude debt on a former residence provided the settlement agreement reflects such.

Lenders consider this is legal assignment of debt, and will not penalize the departing spouse for the additional debt.

It’s worth mentioning that lending rules are constantly evolving. Lenders are consistently revising their guidelines based on market trends and other risk factors.

In today’s lending world, this legal assignment of debt is often sufficient.

We don’t know, however, if and when those rules will ever change.

For this reason, it’s always best to weigh the risks involved before agreeing to retain a joint mortgage following the divorce settlement.

What is the process for removing one spouse’s name from the mortgage?

To remove a spouse’s name from a mortgage, you will have to apply for a refinance home loan solely in your name. The refinance process involves an initial application, lender underwriting and approval of your income and credit, along with an appraisal.

This not only protects you by demonstrating you have sole ownership in the home, it also protects your ex who would other still responsible for mortgage payments in the event you do not keep up with payments.

What about the title to the property?

Once you have been approved for a refinance loan, you will also need to have your ex-spouse’s name taken off the deed to the property as well.

This is typically done through a quitclaim deed or an interspousal transfer deed, meaning that your spouse gives up his or her rights to the property. This deed is then filed with the county clerk’s office and title to the property becomes update.

Sometimes it makes sense to refinance this loan pre-divorce, prior to the judgement or dissolution going into effect. Often times the refinance is done prior to any settlement agreement being put together.

If you are updating title to the home in a pre-divorce refinance while still legally married, you will need to hold title as:

A Married Man/Woman, As His/Her Sole And Separate Property.

Then, once the divorce is finalized you can file another deed changing title from your sole and separate property to:

An Unmarried Man/Woman.

These are just a few of the important process and timing considerations associated with the division of property.

Should I allow my spouse to have exclusive use of the home if I am still on title?

If you agree in a divorce settlement to give your spouse the home, ideally, they’ll refinance the home mortgage in their name only. This will provide reassurance that you no longer have any financial responsibility, and will then be able to confidently sign over title to the home.

The exception to this is if there is a deferred distribution whereby both parties agree to maintain possession of the house until such time that a court orders the house sold, usually when there are no longer minor children living in the home.

What Steps Should I Take to Sell the Home in a Divorce

To make a clean break during a divorce, many spouses agree to sell a home and divide the proceeds as part of the starting over process.

Keep in mind that this only works when ownership in the house is not being disputed as part of a contested divorce settlement. In those cases, a judge will make a final ruling to decide how much equity (or money) each spouse is entitled to once the property were to sell.

During this negotiation period, both sides will be blocked from selling the home until a final decree has been issued.

When one party files a Petition for Dissolution of a marriage, they are restricted from doing anything with the property.

The Summons, which lists assets and real property, are also temporary restraining orders, or TRO’s, that prohibit either spouse from disposing of or concealing any property.

There are some exceptions to these types of orders. For example, if the property is going into foreclosure or has already entered the foreclosure process, the judge will not be able to prevent the bank from taking over the home upon completion of that foreclosure process.

Another exception is when the home is the only source of liquidity that would enable the party or parties to pay their attorney fees and costs. If there is no way to cover these specific expenses over the course of the settlement, the order to sell the home by the judge could come sooner than expected despite any TRO’s in place.

In the absence of these restrictions, and especially when there is an agreement about selling the home before the Petition is filed or after the final decree, the spouses will go through a fairly traditional sales process.

First, find an agent that you can both agree on using. If you can’t decide, a realtor will then be assigned to you. The agent will help set realistic expectations for the potential sales price, market your property, and advise on which offers as the most attractive.

More importantly, your realtor should be open and honest about the communication process during this listing. How will both parties be informed of any activity taking place? Ultimately, both parties should have an equal voice in deciding which offer is best.

There are real estate agents that specialize in divorce transactions. They are specifically trained to not just deal with the legal and financial aspects of the sale as it pertains to your divorce settlement, but also the emotional aspects which include effective communication, joint decision making, and transparency.

How to Value the Home in Divorce

We’ve already identified the home as likely being the most valuable asset to be split during your divorce.

The current value of the home is the primary factor in determining what your financial position will become post-divorce.

Agreeing on a property value is not always black and white. Property values and market trends across the country can be volatile on a daily, weekly, or monthly basis.

Here are some of the most common ways for valuing the home:

• Formal appraisal by a licensed real estate appraiser
• Comparative Market Analysis (CMA)
• Broker price opinion (BPO)
• Online Price Estimator (Zillow, Redfin, etc)
• Property Tax Assessment (County)

These options are listed in order of priority.

The most accurate and preferred method of valuation is a formal appraisal completed by a licensed real estate appraiser. The appraiser will go to your property to complete an inspection, review market trends, consider recent comparable sales, and then prepare a full report usually anywhere from 15 – 40 pages in detail.

A second and third option is either a Comparative Market Analysis (CMA) or a Broker Price Opinion (BPO). The CMA is usually completed by a real estate broker. The report will address local comparable sales and make price adjustments (positive or negative) for any difference in the features of the recent sales as compared to your property.

The broker price opinion is often completed by a real estate broker as well, but doesn’t necessarily consider real-time market activity.

The third and fourth options should not be used in determining a true property value.

A property tax assessment is a value that the County assigns your home in an effort to calculate your property taxes. However, these re-assessments happen infrequently if at all. In other words, the County places a value on your property but rarely updates the assessed value despite home improvements and property appreciation over time.

For this reason, your assessed value is not a true indicator of today’s value.

The same applies for online price estimators such as Zillow and Redfin.

These online platforms do a great job at estimating your current property valued based on a ton of curated, local data. However, it is what it says it is, which is an estimate. These companies aren’t driving by your property, inspecting the inside, or taking condition into consideration at all.

While the accuracy of these estimators has improved over time, they should not be relied on in deciding the true value of your home today.

When divorcing the mortgage is NOT an option

Not all divorcees will be positioned to qualify to take over responsibility for the entire mortgage on their own.

This problem is worsened when the spouse retaining ownership needs to pull cash from the property (via refinance) in order to complete their buyout or equalizing payment.

In certain scenarios, the departing spouse or the out-spouse will agree to keep their name on the mortgage while giving the in-spouse exclusive rights and ownership of the home.

While this may be the path of least resistance, it presents several unique questions:

Who is Responsible for the Mortgage Payments? Am I Responsible for Half the Mortgage if my Ex Stays in the Home?

As we discussed earlier, this question is two-fold. There is a difference between responsibility from a credit perspective, and responsibility from a legal perspective.

As long as your name is listed on the mortgage documents as one of the owners of the home, then you and anyone else listed as a borrower are financially responsible for the mortgage payments as far as the creditor and the credit bureaus are concerned.

It does not matter if only one of you continues to live in the home or not. And even if you work out an agreement for one spouse to pay, if either of you misses a payment and your name is on the mortgage, the delinquencies will affect both of your credit profiles.

A joint mortgage means you share joint responsibility until the home is sold or your name is removed through refinancing.

However, your Marital Settlement Agreement can state that the retaining spouse bears sole legal responsibility for maintaining payments on the home. Most lenders consider this to be a legally binding assignment of debt.

Emphasis on the word most , as not all lenders have the same guidelines and criteria for excluding this sort of debt. Check with a divorce mortgage advisor for specifics unique to your situation.

To the extent that this clause is part of your agreement, you may have recourse in the event the in-spouse fails to hold up their end of the bargain, at least in the court’s eyes.

However, the credit bureaus will still penalize you for any delinquent payments regardless of who is at fault.

What Happens if my Ex Does Not Remove my Name From the Mortgage?

If your home is awarded to your spouse in a settlement, then part of this will include taking appropriate steps to remove you from the title AND the mortgage.

If a spouse does not follow the divorce decree, which has the same standing as any other court order, then you can petition the court to enforce your settlement or an equitable distribution order.

Although the process will take some time, ultimately your name will be removed from the title and the mortgage whether it’s via refinance or sale of the property.

Courts usually grant some reasonable and pre-defined amount of time for this to happen and the actual amount of time may vary due to how long it takes to refinance the home or if added time is needed to build credit worthiness or find a co-signor.

If a spouse does not meet the deadline determined by the court, then you could file a motion for contempt. And if your spouse has attempted to refinance the home but failed, then the court could order that the home be put up for sale.

Can I Personally Sell the Home if my Ex’s Name is on the Mortgage?

Unless a divorce decree gives full ownership rights to one spouse or the other, jointly owned homes will also require the approval and signatures of both spouses.

If one spouse refuses to cooperate with the sale of a home, legal action may be necessary. A spouse may petition the court to amend a divorce decree and order the sale of the home that both spouses own. This can be time consuming and expensive if spouses are quarreling about whether or not the home should be sold.

How to refinance your mortgage in a divorce

So you’ve decided which one of you is going to keep the house following the divorce.

The retaining spouse now has a task to complete – refinancing the home mortgage into their own name.

This requires the bank to review the borrowers financials, and determine whether they are a qualified candidate.

The application process for a divorce mortgage is no different than that of any other standard mortgage application process.

They all come back to the same subject: Qualifying.

Whether the refinance is to simply remove one spouses name by refinancing the existing mortgage balance, or if the refinance requires you to pull cash-out from the home for buyout purposes, the qualifying parameters remain largely the same.

Qualifying for a mortgage in today’s lending environment rests on three primary pillars, or as we like to call them – The 3 C’s:

#1 Capacity: (aka income, or your ability to repay)

#2 Credit: (your historical ability to manage debt and make timely payments)

#3 Collateral: (the amount of equity, or ownership, you have in the home)

All three of these boxes need to be checked in order for someone to successfully obtain financing, at least by conventional lending standards.

Here’s a sneak peak into the significance of each of the 3 C’S:

Capacity (aka income): Lenders abide by strict debt-to-income ratio (DTI) limits. In other words, a lender will review your financials to determine whether your monthly debts exceed a specific percentage of your gross monthly income.

For the most part, these debt-to-income (DTI) ratio limits are non-negotiable. If your ratio exceeds what they allow, you’ll be unable to complete the process. A couple tips for alleviating debt-to-income ratio challenges are:

• Lower the mortgage amount
• Pay off other debt
• Find additional sources of income

Credit (aka FICO score): Lenders put heavy emphasis on your credit history, specifically your credit score or FICO score. A low FICO score signals to the bank that the borrower may not be good about paying their bills on time.

Or, the credit report might show that the borrower carries an excessive balance in proportion to their credit limit. A high score signals just the opposite.

A low score yields a higher interest rate, as they level of perceived risk is heightened. Borrowers with higher credit scores receive the benefit of cheaper mortgage rates and/or costs.

Collateral (aka the home): The 3 rd and final piece to the puzzle is the home itself. Lenders will only extend loans up to a certain percentage of the home’s value. They call this a loan-to-value limit (LTV).

This is where a formal appraisal comes into play. The amount of equity one has in their property must be documented through this appraisal process, in order to generate a loan-to-value ratio (LTV).

In the event the loan amount exceeds the lenders limits in proportion to the home’s value, a client may be unable to qualify for a refinance.

An alternative for alleviating LTV restrictions could be reducing the mortgage balance, finding additional comparable sales to support a higher value, or accepting a higher interest rate as a result of the excessive ratio.

These are the three primary factors that will play into your ability to qualify for a new mortgage.

The early you can prepare for this in your divorce settlement – the better.

Once the divorce is final and you’ve put ink to paper, it’s extremely difficult to go back and amend things after the fact.

A divorce mortgage advisor should be able to think ahead to what your financial picture will look like post-divorce, and advise you what you need to do (if anything) to position yourself in the best light possible when it comes time for the bank to take a good look at you.

For a look at some of the unique lending rules specific to divorce applicants, feel free to download a free copy of Divorce Your Mortgage: The Definitive Guide .

This guide will provide a high-level overview on what separates a standard mortgage application from the divorce mortgage application that you’ll be submitting.

Reasons to refinance your mortgage in a divorce

We’ve boiled it down to two primary reasons why someone might be required to refinance the mortgage after or during a divorce:

First, the departing spouse may no longer want to be obligated on the existing loan, especially if they are forfeiting their ownership stake in the property. In essence, they want to protect their credit and cut all ties to the property.

Secondly, pulling cash-out from the home may be the only way to access funds to complete a buyout or any equalization payments.

On the other hand, there are several other reasons to refinance a home in divorce despite not being required to as part of your divorce settlement.

What are other reasons to refinance your mortgage in divorce?

So you’ve been “awarded” the house.

Now, it’s time to make some prudent financial decisions to benefit yourself in the long run.

The house is a great place to start if you are looking to leverage yourself to access cash, consolidate debt, or lower your monthly mortgage payments.

Here are some common approaches:

Tap into your home’s equity for reasons other than a buyout.

With rising home prices and historically low interest rates, by refinancing your home, you can gain access to low-cost capital as a source of liquidity. You may want to consolidate your debts such as credit cards, student loans, auto loans, and other burdensome obligations.

You may also want to establish a cash reserve if the divorce had a major impact on your liquidity, or cash on hand. These funds can also be used to complete those long-overdue home improvements, cosmetic repairs, or larger add-ons.

Alternatively, the money can be used for other investments such as stocks and bonds, and other real estate.

Lock in fixed payments.

Did you know about 10% of all homeowners have adjustable rate mortgages (ARMs)? What does this mean? It means the payments can fluctuate either up or down after a fixed payment period expires.

For example, 5 years ago you financed a loan using a 7/1 ARM product. This is a 30 year loan that has a fixed interest rate for the 1 st 7 years. After year 7, your rate will change based on current market rates. It is not a comfortable position to be running with a mortgage with a rate that will adjust two years from now – especially if you intend to keep the property beyond the next 2 years.

For this reason, you may want to refinance into a new 7/1 ARM product for the benefit of 7 more years under a fixed rate agreement. Even more secure is the option of refinancing into a fully fixed rate product such as a 10, 15, 20, or 30 year fixed rate loan.

While ARM products usually come with lower cost initially, the trade-off is that there is a certain amount of uncertainty down the road once the introductory fixed rate period is about to expire. There is a certain level of piece of mind to having your interest rate fixed for the foreseeable future, or at least until you anticipate selling the home.

A divorce already creates a fair amount of unanswered questions in your life, and by refinancing with a fixed rate loan, you know exactly what your monthly payments will be for years to come.

Lower your mortgage payment.

Rates have come down quite a bit in recent years and are now down near historic lows. A refinance may enable you to lower your mortgage payment and improve your monthly cash flow.

After all, cash flow is a common concern for spouses’ following a divorce. It’s worth it to keep your finger on the pulse of the mortgage market and identify opportunities for locking in a lower rate and payment.

If the goal is to lower your monthly mortgage payments, keep in mind that refinancing into a higher interest rate doesn’t always equate to a higher monthly payment. Let me explain:

Your current loan was financed 10 years ago for $500,000 at a rate of 3.75%. Your monthly payment is $2,316/month, and the mortgage term is for 30 years.

Today (10 years later) your mortgage balance is $385,000, and your monthly payment remains at $2,316/month.

Here’s the catch…

By refinancing the current balance of $385,000 into a new 30 year loan at a higher interest rate, let’s say 4.25%, your monthly payment will actually fall to $1,894/month. This equates to monthly savings of a whopping $422/month!

Simply put, you’ve extended the mortgage payments for another 30 years, whereas you only had 20 years remaining on your old loan.

In the long run, this could be significantly more costly in terms of total interest spent over the life of the loan. Again, it all depends what your goals are.

In this case, the goal was to lower your monthly mortgage payments. We’ve demonstrated that despite the misconception, a higher rate doesn’t always mean a higher payment.

For a deeper dive into the reasons for refinancing your home in divorce, check out this Forbes article Til the House Do Us Part: Top 5 Reasons to Refinance After Divorce .

Assuming your mortgage in a divorce

Is the interest rate on your current mortgage too good to let go of? Do you want to keep the house AND the current loan terms?

Well, you’re in luck (maybe).

The alternative: an Assumable Mortgage .

What is an assumable mortgage and how does it work?

Simply put, assuming a mortgage is like inheriting the current loan. It’s when a joint mortgage is transferred into the name of one spouse alone. The inheriting spouse then gets to retain their current mortgage rate (hopefully it’s better than current market rates) and maintain the same monthly mortgage payment, all while accomplishing the ultimate goal of removing their spouse from the loan.

While this might sound attractive in theory, one’s ability to successfully assume a loan is far less likely than most refinance proposals.

With the rise in popularity of assumable mortgages, there are many misconceptions to be addressed.

Misconception #1: All loans can be assumed

Truth: Most loans do not allow for assumptions. A loan assumption is a ‘feature’ of a loan product. Not all loans have this assumable ‘feature.

How do you know if your loan has an assumable feature or not?

You’ll want to dust off a copy of your old Promissory Note (or call the bank for a copy). The Note reflects the terms of your existing loan. This Note will explicitly tell you whether your loan can or cannot be assumed. ALWAYS start here.

Misconception #2: Qualifying is not required to assume a loan

Truth: Similar to a refinance, the spouse hoping to assume their loan will still need to go through the typical approval process. This includes submitting financials, bank statements, credit reports, and everything in between.

Like a refinance, one will need to demonstrate that they can afford to maintain payments on their own based on their overall profile. If you don’t qualify for a refinance, chances are you won’t qualify for a loan assumption either.

Misconception #3: Assuming a loan will protect my payment from rising

Truth: As we demonstrated earlier, a higher rate doesn’t always equate to a higher payment. For example, refinancing your loan into a higher rate but over a new 30 year term can actually reduce your monthly payment. Whether it makes sense or not boils down to your goals.

If the goal is to minimize your monthly expenses, then a refinance (despite the rate) might be the better option.

If the goal is to minimize the amount of interest paid over the life of the loan, then an assumption may be the best option.

Of course, you’ll want to be sure that your current rate is better than the current market rates. And to reiterate, you’ll want to be sure that your loan can actually be assumed before you pursue such an arduous process.

At the end of the day, assumable mortgages can be attractive. However, the success rate for securing an assumable loan is poor at best.

Costs of Refinancing the Home

Nothing is free in this world (except for our content!), and the same goes for applying for a new mortgage.

Here are some common fees and costs that you are likely to incur for refinancing your home:

Lender Origination Fee ($750 – $1500)

A lender origination is a fixed fee that the bank charges for their time and effort.

Loan Discount Points (0% – 3% of loan amount)

A discount point is a fee you can pay to secure a lower interest rate. Think of it this way – any interest rate you want is theoretically available, it’s just a matter of how much that rate will cost you.

Paying additional fees to get a better rate makes sense to an extent. Discount points are also tax-deductible just like the interest you pay on your mortgage is tax-deductible.

Appraisal fee ($350 to $1250)

Most banks require an appraisal by their own appraisal management company. The fee can vary based on property value and complexity or uniqueness. Most appraisals are not transferable between lenders, which means even if you had one done in the past few months, the bank may still require a new inspection.

Escrow/Title Fees ($500 to $1,500)

An escrow and/or title company is a 3 rd party to your mortgage transaction. They are the intermediary, and any funds exchanged pursuant to the transaction will run through an escrow company. This is an estimated fee range for typical escrow and title services.

Recording Fees ($250-$500)

Any and all deeds executed during the loan process, which includes the Deed of Trust, are recorded at the local County Clerks office. Yes, the County gets paid too.

Title Insurance ($750 to $1,500)

This is an insurance policy, required for every new loan, which ensures there are no hidden liens on the property and that you are given a clean title. If any errors pop up down the road, or anyone tries to make a claim on your property, this title insurance is your protection.

Notary Fees ($75 – $200)

All loan documents, specifically the Deeds that are to be recorded, require signature in the presence of a notary. The escrow company handling your transaction is responsible for setting up a notary through one of their approved vendors.

The notary fee can vary based on the amount of documents that need to be notarized. The fee can also fluctuate depending on whether the signing takes place in the escrow office (cheapest option), or if the notary is required to travel – for example, to your home or office.

Prepayment penalty

There may or may not be a charge for paying off your loan earlier – although the chances are there is not. It’s always best to check with your current lender to be sure. However, prepayment penalties seem to be a thing of the past, and most mortgage secured after the recession in 2008 do not have any prepayment penalty features.

Common Real Estate Deeds Used in Divorce

Whether your updating ownership on your current home, or purchasing a new home, you’ll often hear a number of confusing terms being thrown around.

It is easy to mistake property title and property deeds as one in the same.

However, they are two completely different legal concepts and the terms should not be used interchangeably.

What is the difference between a property title and property deed?

Title is a legal way of claiming ownership to a particular piece of real estate. Therefore, title refers to ones level of ownership of a given property. It signals that the property belongs to them, the title holder, and that they have rights to use the property.

One’s interest in a property can either be in full, or partial, depending on whether there are other title holders, or owners of record.

When someone has title to a property, they also have the benefit of being able to transfer their interest, or even a portion of their interest, to someone else. This commonly occurs in divorce transaction when one spouse is being bought out of their share in the home, and title is transferred from ‘joint’ ownership into one spouse’s name as ‘sole owner’.

On the flip side, deeds are the physical legal forms that are signed and recorded in order to complete the transfer of one’s interest. Most deeds, depending on the State, need to be filed and recorded with the County Clerk or Assessor’s office in order for them to become official, once they have been signed and notarized.

In short, title equals ownership. Deeds are the instruments used to change this ownership.

What is the process for filing deeds? Are there tax consequences?

Deed requirements, and the process for changing title to a property using deeds, can vary from state to state.

In addition, transferring title to a property may also carry tax consequences which can vary depending on where the property is located – even down to the specific County. For example, some Counties may charge a County transfer tax for removing one spouse from title.

For this reason, it’s always best to check with a local attorney or local title officer to understand the impact of filing various deeds in your State.

What are some common deeds used in divorce?

There are several deeds that can be used when transferring ownership in a property. Some of these are distinct from one another, while others may be used interchangeably.

Here’s a glimpse into some common deeds pursuant to a divorce settlement:

Interspousal Transfer Deed – This is a deed that transfers ownership between spouses in a divorce.

In California, this type of Deed is considered a ‘transfer’ of ownership rather than a ‘change’ in ownership. For example, one spouse may wish to transfer their separate property interest in a home to their spouse, without impacting the classification of separate property vs. marital property .

Grant Deed – A grant deed, similar to an interspousal deed, is used in some states to transfer real estate from one person to another.

The party transferring their share is referred to as the Grantor, and the recipient is referred to as the Grantee.

The primary difference between a Grant Deed and an Interspousal Deeds is that one is used to transfer ownership between a married couple, while the other is used to transfer title to anyone.

Quitclaim Deed – Also referred to as ‘Quick Claim Deeds’ due to the speed at which these can transfer real estate. These deeds are common in divorce.

For example, one spouse may want to end or terminate their interest or claim in a marital home titled jointly. In essence, this grants the spouse on the receiving end their full, unencumbered right to the property.

In divorce, if a spouse acquires or is awarded the marital house, the departing spouse could sign a quitclaim deed removing their interest in the property both quickly and inexpensively.

Alternatively, a quitclaim deed can be used to reinforce one spouses separate property interest in a home. This would ensure that the property remains classified as their separate property, rather than converting to a marital property classification.

A quitclaim deed does not guarantee that the Grantor actually holds title to the property.

Warranty Deed – A warranty deed is used in scenarios where there is a buyer and a seller involved.

This deed indicates that there are certain warranties being made between the buyer and the seller.

For example, one of the primary warranties associated with this deed is that the Grantor (seller) has an ownership stake in the home AND that they have the right to transfer of sell this ownership stake to the Grantee (buyer).

The quitclaim deed we described in the same example does not come with such reassurances.

Deed of Trust – A Deed of Trust is a completely different kind of deed than the ones above which transfer ownership between two parties. These longer, more detailed deeds can be anywhere from 3 – 15 pages in length.

There are always 3 parties associated with a Deed of Trust. Those parties are 1) a borrower, 2) a lender, and 3) a trustee.

In essence, the lender lends the borrowers funds. The borrower signs a promissory Note for the debt they’ve incurred.

In some States, the borrower might transfer legal title to the Trustee (who is a neutral 3 rd party). The Trustee then holds the home until the mortgage is paid off.

In other States, the Trustee will simply place a mortgage lien on the home.

These are just a few of the more common deeds that are seen in divorce.

It’s imperative that you verify which deed forms to use, and the process for filing them, specific to your state.

Getting Help from Key Professionals

It is commonly accepted practice to retain a family law attorney to assist you with your divorce.

The vast majority of divorces will require a competent and experienced litigator who can work through the procedural requirements, advise you on legal issues, conduct negotiations for you, and if needed, represent you in court.

However, there are several other professionals you should also consider to assist you through various parts of your divorce as well.

Their specialized knowledge can ease your anxiety, save you from making financial missteps and help you survive the divorce process so that you can move forward as quickly as possible with the next part of your life.

When it comes to issues regarding your home and your mortgage, you would be wise to consider retaining the services of a divorce mortgage advisor.

If you have home ownership questions related to divorce, or you are considering buying a new house, you will benefit greatly from the in-depth insights a divorce mortgage advisor will have about the divorce process and divorce-specific underwriting guidelines.

By performing a detailed underwriting analysis, a divorce mortgage advisor can offer guidance on how the mortgage fits into your settlement strategy.

For instance, if you want to keep the house, it’s important to determine whether you qualify to refinance (taking spousal and child support obligations into consideration).

While it’s true that divorce is a highly legal process, there are also several financial implications to a divorce as well. That’s why it may be a smart move to also consider retaining the services of a divorce financial advisor.

If your divorce is complex and there are complicated financial and tax implications, a divorce financial advisor can offer creative solutions, evaluate settlement proposals, and help you understand the long-term impact of your decisions.

At a minimum, you’ll want to retain a Certified Divorce Financial Analyst (CDFA), but you’ll enjoy several added benefits if that financial professional is also a Certified Financial Planner (CFP).

A CDFA has specialized training in the financial and tax aspects of divorce, while a CFP has broad expertise across all facets of financial planning.

In some cases, you may also want to retain a forensic accountant. This can prove especially valuable when a spouse is reluctant to reveal their true income, or you suspect they may be hiding assets.

Some forensic accountants are also business valuation experts and can assess the valuation of any privately held business interests.

Last but not least, consider working with a therapist to help you handle any anxiety, fear or other negative emotions you may be experiencing.

Your friends and family may be able to provide you with strong emotional support, but a good Marriage and Family Therapist will be able to help focus strategies that will also help you keep the lines of communication open with your spouse and even help to negotiate a parenting plan that is in the best interests of any children in the marriage.

Key Takeaways

Now that we’ve gone over the nitty-gritty details, here are 14 key facts you need to remember about your home and mortgage in a divorce.

Looking for more great tips on divorce and money? Check out a few of our favorite resources:

• 101 Financial Pitfalls of Divorce
• What is a Certified Divorce Financial Analyst? (and why you need one)
• The Ultimate Guide to Life Insurance and Divorce
• How to Value the House and Split Home Equity in a Divorce

Ross Garcia is a divorce mortgage maven. Ross is the founder of Divorce Mortgage Advisors and co-founder of Survive Divorce. Ross is passionate about sharing his expertise in real estate and mortgage issues in divorce so you can make savvy financial decisions.

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Mortgage Transfer in Divorce

Primary mortgage transfer options

What else can you try, collaborate with your partner.

The mortgage you signed during your marriage remains your joint responsibility unless you make other explicit arrangements during your divorce. Since just 40% of homes in the United States don’t have a mortgage, most people must work out arrangements during the split. 

A mortgage transfer allows one party to stay in the home and accept all financial responsibility. Two main methods exist to help with this. If a transfer isn’t an option, other choices are available. 

If you want to stay in the home after the divorce, the following two options could help you do just that. 

1. Refinance your mortgage

In a mortgage refinance , you open a new loan in your name, rendering the former one invalid. This option allows you to stay in your home as long as you can make all of the payments on time. 

A mortgage refinance is the quickest and easiest way to complete a mortgage transfer in a divorce. If you have a healthy credit rating and can handle the new payments, this is a good choice. 

2. Try a release of liability

Release-of-liability paperwork allows a couple to remove one person from the home mortgage. This is a good option if you can determine how to pay off the mortgage and your partner at the same time.

For example, you might choose to cash out your retirement savings account and use the money to pay off your mortgage and your partner's share of the home. With this move, you could own your home outright and have an equitable split.

A liability release is hard to accomplish without appropriate funding. If you don't have a new loan or another way to pay off the home, the bank could keep the mortgage in both names for now. 

If you're unable to complete the mortgage transfer process, you have other options. They are more complex, but they could be right for you. 

Try our Home Equity Split Calculator if one of you wants to buy the other spouse out of the marital home.

Share the mortgage

Some people opt to share the mortgage after the divorce. One person lives in the home, and the other considers it an asset that could gain value with time. Since more than 80% of people have interest rates below today's levels, keeping the home could be a smart financial step. 

Because both names remain on the mortgage, skipping payments would harm you both. The two of you must remain in touch about the home's status and value. Sometimes, people accept this agreement. If you share children and want them to stay in the home they grew up in, this could be a compelling reason to share it after the divorce. 

Sell the home

When your options are exhausted and you see no other way forward, selling the home could be a smart step. After the sale, you and your partner split the proceeds equally. 

If your home is worth more than the balance of the mortgage, this can be a wise step. You cut home-related ties with your partner permanently, and you could use the money you earned to buy a new home in time. It’s a straightforward way to sever your financial ties so you aren’t continually linked in that way.

Your home is likely your largest asset, and understanding what to do with it during a divorce isn’t easy. Talk openly and honestly about what you want during your divorce. You might be surprised to discover that your partner is willing to work with you on certain items.

If you can’t hold constructive conversations about your home – and many people can’t – consider mediation. A mediator could help you and your partner talk openly about what you want. And you could find a way forward that seems fair to you both. 

Mediators are trained to handle difficult discussions, and their help could be critical as you work through your divorce. If you can keep your divorce out of the courtroom, it is easier on all parties.

Suggested: Successful Divorce Mediation Tips and Tricks

What Should You Do With Your Marital Home in Divorce? Explore Your Options.

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Dealing with divorce: How to handle your mortgage when you split

This article originally appeared on Avvo , written by Andrew Dickens.

Financial issues are consistently among the top reasons for divorce, so it’s not surprising that divorced couples often end up falling behind on their mortgage and facing foreclosure. And unfortunately, foreclosure—frustrating and stressful enough on its own—is often further complicated by issues unique to divorce .

Until debt do us part

It’s very common in divorces for one spouse to transfer their interest in the marital home to the other. It’s also very common for the transferring spouse to think that such a transfer relieves them of any liability for the mortgage—unfortunately, that’s not how it works.

If both spouses are listed as borrowers on the mortgage, transfer of the property alone will not remove a spouse from the mortgage.

As far as the bank is concerned, both spouses are obligated to make sure the mortgage gets paid, regardless of whose name is, or isn’t, on the deed.

Should the mortgage go unpaid, foreclosure will be filed against both spouses, both spouses’ credit will be affected, and both spouses will face the potential of a deficiency judgment (a judgment ordering payment of any deficiency between what was still owed on the mortgage and what the property sold for at foreclosure).

Unsuspecting spouses often find themselves dealing with foreclosure after divorce on a home they no longer live in, nor own.

And so, until proper steps are taken to clarify financial responsibility for the mortgage, divorce may not be the final and complete separation that a couple was hoping for.

Happily ever after

Despite the inherent challenges involved, it is in the best interests of divorced couples to work together towards a solution that effectively carries out their intentions and allows both spouses to move forward without uncertainty regarding their financial obligations or fear of foreclosure.

Potential solutions include:

Assumption . If one spouse is going to remain in the property, that spouse may be able to assume the mortgage. This means that the assuming spouse would take over all responsibility for making the mortgage payments. The non-assuming spouse would be released from all liability for repayment or future foreclosure.

Refinance . The spouse keeping the property may be able to refinance the mortgage. Similar to assuming the mortgage, refinancing will completely remove the other spouse from all liability. The refinancing spouse will have to rely solely on his or her own credit and finances in order to qualify.

Loan Modification . Once a divorce is finalized, and a divorce decree has been issued awarding the property to one spouse, the bank may be willing to allow that spouse to apply for a loan modification without the other. If a loan modification is approved, the other spouse will be completely removed from the mortgage and released from all liability for repayment or future foreclosure. Note that this varies from lender to lender, and some lenders are not willing to release one spouse from the mortgage without refinancing.

Hope for the best, plan for the worst

Regardless of which solution a couple chooses to pursue, it’s a good idea to anticipate the possibility that their plans may not work out.

Any separation agreement or divorce decree needs to place a time limit on a spouse’s attempt to take advantage of these options. For example, if a spouse is unable to remove the other spouse from the mortgage within one year after separation or divorce, then there could be a provision requiring that the house be sold.

Unfortunately, no matter how well thought out, divorce and properly separating financial liability for the mortgage can be a difficult process. There are several factors that must be taken into account in order to properly protect each spouse’s interests.

This is all good advice, but those looking at a possible divorce which also potentially involves foreclosure should consult with a licensed attorney who can work with you to take advantage of available options, and help prevent future surprises or conflict.

With the right help, it’s possible for spouses to go their separate ways and both be happy with the outcome.

Misconceptions of Assuming a Mortgage After Divorce

Ross Garcia

This article originally appeared in FORBES .

Along with alimony, visitation and child support issues, few things in a divorce will cause more disagreements than what to do with the family home. In addition to retirement and pension accounts, the family home is probably the most valuable asset to be divided in a divorce. Tradeoffs are inevitable, and in many cases, one spouse will gain control of the home as part of a settlement agreement.

But once that’s been decided, it presents new challenges for the awardee, the biggest one being whether the spouse and children (if there are any) can actually stay in the house. What are the options?

There are basically three things that can happen to a family home as part of a divorce settlement when one spouse is going to retain the property rather than sell it:

• Retain the original joint mortgage.

One spouse may keep the home, but both spouses remain liable on the joint mortgage. This works great if you (truly) trust your ex-spouse, who could miss a payment at any time for any reason. It’s important to note that a payment default, regardless of who was responsible, could lead to long-lasting credit damage for each of you.

• Refinance the joint mortgage.

When one spouse wants to keep the home, the mortgage can (and should) be refinanced in their name only.

• ‘Assume’ the original mortgage.

This can be a great option if your existing mortgage allows for a loan assumption. This makes sense when you have good rate and payment terms on your existing mortgage.

Of the options, an assumable mortgage is the one that people have the most questions on in my experience. This also happens to be the option where misconceptions are the most common.

What To Know Before Trying To Assume A Loan after Divorce

Why would a spouse want to assume a loan.

Assuming a loan means one borrower is removed from the current loan without the remaining borrower having to refinance the existing loan.

There are several reasons why a spouse in a divorce would want to assume a home loan .

If the current loan terms are favorable (primarily the interest rate), this can be an easy way to protect those favorable terms instead of refinancing, perhaps at a higher interest rate.

In most cases, assumption fees are less than the overall cost of a refinance. Oftentimes, an assumption can be completed by paying less than $1,000 in fees, if it can be completed at all. An assumption, if done correctly, accomplishes the goal of separating yourself completely from your existing joint mortgage.

What are the misconceptions of attempting to assume a loan after divorce?

One of the common misconceptions is the belief that all loans are assumable.

This is far from the case.

In fact, most loans issued post-2008 do not have an assumable loan feature.

A spouse can easily determine whether their loan is assumable by looking at their original promissory note. Under no uncertain terms should you apply to assume your mortgage unless you have confirmed that your current lender allows for it. Otherwise, you’ll be spinning your wheels, and precious time can be lost as interest rates fluctuate.

Many also believe that assuming a loan can be accomplished with a simple call to the bank and a few signatures . When you assume a loan, the lender will require full documentation of your income, assets and other relevant information that will prove you can make payments without the help of your ex-spouse.

In this regard, an assumption is no different than a refinance, but you are assuming the loan because you expect to benefit from better terms. The burden remains on you to demonstrate that you can take on the full debt load by yourself.

A third misconception is that many people think to assume a loan is always a better way to go . That’s not necessarily the case.

Rates remain relatively low, so refinancing doesn’t necessarily mean a higher payment. In fact, by re-amortizing the loan over another 30 years, this could result in a lower monthly payment and create better overall cash flow (don’t be quick to assume that a higher interest rate is going to put you in a worse-off financial position.)

It depends on what your objective is.

You should certainly take into account the costs you will avoid by assuming a loan instead of refinancing. These can include application fees, appraisal fees, and title insurance policies. But just because there are higher upfront costs, don’t let that sway you without first doing a thorough longer-term analysis based on your personal circumstances.

It’s also misguided to think a refinance will take the same amount of time as assuming a loan.

A refinance typically takes about 30 days, but a loan assumption can take anywhere from three to six months, depending on the lender. I’ve seen some take as long as six months, only to be told they didn’t qualify for a loan assumption.

Rates in that period of time had increased by 0.375% — a significant long-term impact. There also may be greater documentation requirements, which is not the path of least resistance.

Exercise Due Diligence When Attempting to Assume a Mortgage

If you’re thinking of assuming a loan in a divorce, s tart by calling your current lender and asking them for a copy of your original promissory note.

The promissory note will tell you whether the loan is assumable or not. In some cases, clients are told their loan is assumable only to find out months later that it is not, and a refinance is the only option.

Due diligence upfront is critical and you need to understand that while it may put you in a better long-term financial position, an assumption is not always the easiest or best way to go.

Also keep timing in mind, as delays during the assumption process can create quite a problem when a divorce settlement agreement requires completion within a certain time frame.

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Is a Mortgage Transfer Possible? Sometimes—Here’s When

Can you hand off a home loan from one person to another? The answer is usually no. When you sell your home, the buyers have to get their own mortgage  and you pay yours off in full with proceeds from the sale.

But there  are  a few exceptions to the rule. Here are the ways you can transfer a mortgage, and why you might want to consider it.

What kinds of mortgage transfers are possible?

Most loans aren’t transferable, and the reason for this is that they have a “due on sale” clause, explains  Chris Combs , founder of Combs Law Group. That means that when the property is sold, the entirety of the loan comes due.

But some loans are created without due on sale clauses, and so they can be transferred from seller to buyer. These are known as “assumable loans,” says  Chris Lewis  from Angel Oak Home Loans. There are three main types of assumable loans:

• VA loans  are designed to be assumable because service members move frequently for their careers. Loans closed before March 1988 can be transferred freely, with no additional approval from the lender (however, given that those loans are now nearly 30 years old, there aren’t too many left around). Loans closed after that date must have the transfer approved by the lender, which means that the person on the receiving end of the transfer has to meet certain income and credit standards to qualify.
• FHA loans can also be designed to be transferable without lender approval. The loan must have closed before December 1989 (which also means not many are still around). Otherwise, the lender must approve the new borrower.
• USDA loans can also be transferred, but lender approval is required, and the recipient must not exceed certain income requirements.

Reasons to make a mortgage transfer

With today’s low interest rates, there is less incentive to want to take over someone else’s mortgage. However, when rates rise, this option looks more attractive.

Taking over a loan also saves on  closing costs : Instead of paying to originate a new loan and all the taxes and other closing costs associated with that, a buyer pays a nominal fee to assume the existing loan. You also don’t need a down payment to assume a loan.

However, even if a loan transfer is possible and preferable, there are some complications to the process.

Assumable loan disadvantages and dangers

Although you don’t need a down payment to assume a loan, you still might need to come up with a big chunk of change to make the transfer. Since you’re assuming only the existing loan amount, you are responsible for paying the seller for their equity in the home. The more equity a seller has, the more money the buyer has to pay up front.

For example, if the purchase price of the property is $300,000, but the seller has paid down the loan to $200,000, the buyer has to come up with the $100,000 difference that the seller has racked up in home equity.

If the buyers don’t have that much cash on hand, they can take out a secondary loan, but that loan will be at the current higher interest rate and include standard closing costs, making the transfer much less attractive.

Another thing to watch out for is that the original borrowers still retain responsibility for the loan unless they have a release in writing from the lender. If they fail to get this release, they are still liable if the new homeowner fails to repay the loan, and the loan debt will still count against them if they attempt to take out a new mortgage. If you do go through a loan assumption, be sure to hold onto your release paperwork in case there is ever an issue down the line.

When due on sale clauses don’t apply

Almost every loan other than a VA, FHA, or USDA loan will have a due on sale clause. However, because of a law called the Garn–St. Germain Act of 1982, there are some transfers that all lenders are required to allow despite the due on sale clause. Most of these are transfers between family members related to unanticipated changes in the homeownership, explains Combs. Here is a list of the most common exemptions:

• Loan transfer to a relative on the death of a borrower
• Loan transfer from a borrower to a spouse or children
• Loan transfer from one ex-spouse to another during a divorce or separation (if they continue to live there)
• Loan transfer to a living trust, if you continue to occupy the property

These transfers work by either adding a person to the home’s deed, removing a deceased owner from the home’s deed, or having the spouse giving up ownership sign a quitclaim deed.

Once ownership of the home has changed hands, the new owner can continue to pay the previous owner’s mortgage.

How living trusts work

For living trusts, the process is a bit more complicated. Living trusts are created to keep a property from going into probate when the owner dies, but is created before the former owner’s death.

“First the trust is created, typically by a lawyer, and then the property is deeded over to the trust,” explains  Corey  Chappell , closing options analyst with 181-Close-Now. “The trust now officially owns the property.”

As long as the former owner continues to occupy the home, the trust pays the mortgage. When the former owner dies, the trust’s beneficiaries can do as they wish with the home without having to go through probate. Here’s more on whether a living trust is right for you.

Audrey Ference has written for The Billfold, The Hairpin, The Toast, Slate, Salon, and others. She lives in Austin, TX.

Twitter Follow @audreyference

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Can You Assume The Mortgage In A Divorce?

You get half. I get half. 

Can one spouse assume the mortgage releasing the ex-spouse from future liability?

The marital home and the existing mortgage on the marital home or other real property is the main settlement issue in the majority of all divorces in the United States. However, this issue is not as simple as who gets the house and who moves out. There may be many points of concern to settle that get overlooked.

Although the marital settlement agreement may determine who retains ownership of the marital home or other real property after the divorce is final, it is crucial to understand that the Deed, Decree, and Debt are three entirely separate issues to settle.

The Deed & Transferring Ownership

A property owner can transfer their ownership of the real property to another party using a Quitclaim Deed or other instrument. When both parties are co-mortgagees on the mortgage note, no further action is typically needed when retaining the current mortgage as-is.

However, it is essential to take action and notify the current mortgagor of the ownership transfer to avoid an acceleration of the mortgage due to a transfer of ownership when the party who is retaining the home is not obligated on the current mortgage note.

A word of caution; if the vacating spouse wants to remain on the deed to the real property until their name is removed from the mortgage, the mortgage financing options available to the vacating spouse may be limited. Please refer to a CDLP™ to determine any impact on the vacating spouse.

The Garn-St Germain Depository Institutes Act of 1982 protects consumers from mortgage lenders enforcing the due-on-sale clauses in their mortgage loan documents when the transfer of ownership includes transfers to a spouse, or children of the borrower, transfers at divorce or death, the granting of a leasehold interest of three years or less not containing an option to purchase and the transfer into an inter vivos trust (or a living trust) where the borrower is a beneficiary.

When one spouse is awarded the marital home and ownership is transferred solely to that spouse, leaving the current mortgage intact, the receiving spouse agrees to take sole responsibility for the mortgage payments through the assumption process. A loan assumption allows a transfer of ownership and leaves the loan intact at the same interest rate, loan terms, and balance.  However, legally assuming responsibility for paying the existing mortgage is often confused with loan assumption, where the original mortgagee is released from further liability.

Assumption & Release of Liability  | When a former spouse assumes ownership of the home and the mortgage, this does not always mean the mortgage lender will release the original borrower from their financial obligation or liability on the mortgage. A loan assumption is a transaction in which a person (the “assumptor”) obtains an ownership interest in real property from another person and accepts responsibility for the terms, payments, and obligations of that other person’s mortgage loan. The assumptor is liable for the outstanding debts, and unless a release of liability is requested, the original borrower will remain liable as well.

 In some assumptions, the lender may release the original borrower from their obligation on the promissory note. However, in most cases, the original borrower remains liable on the mortgage note. This means that, depending on state law and the circumstances of the particular case, if the new owner stops making mortgage payments in the future and goes into foreclosure, the lender may come after the original borrower for a deficiency judgment to collect the debt.

A simple letter including a copy of the Divorce Decree sent to the mortgage holder may suffice as notice to the servicer. Sample wording follows:

Loan No. 12345678

GARN-ST. GERMAIN ACT ASSUMPTION NOTICE

I am writing to inform you that, as of April 1, 2018, my husband and I divorced by order of the Circuit Court of Henry County, Georgia. According to the divorce decree, Mr. Smith must transfer to me his entire interest in the marital residence located at 1234 Main Street. The transfer will take place on May 30, 2018. On that date, I am to assume the mortgage that encumbers the property and make the payments thereon. 

Therefore, pursuant to the Garn-St. Germain Depository Institutions Act of 1982, I now notify you of my intent to assume the Mortgage and Note. Accordingly, you may begin mailing statements to me immediately. Thank you for your cooperation and understanding.

When the existing mortgage to the marital home or other real property remains unchanged, involve a Certified Divorce Lending Professional (CDLP™) in the early settlement stages to obtain a complete analysis of the mortgage financing requirements and effects on both divorcing spouses. This essential step can help provide a smooth transaction post-divorce and remove unnecessary burdens and frustrations.

As a divorce mortgage planner, the CDLP™ can help divorcing homeowners make a more informed decision regarding their home equity solutions while helping the professional divorce team identify any potential conflicts between the divorce settlement, home equity solutions, and real property issues. 

Involving a Certified Divorce Lending Professional (CDLP™) early in the divorce settlement process can help the divorcing homeowners set the stage for successful mortgage financing in the future. 

This is for informational purposes only and not for the purpose of providing legal or tax ad vice. You should contact an attorney or tax professional to obtain legal and tax advice. Interest rates and fees are estimates provided for informational purposes only and are subject to market changes. This is not a commitment to lend. Rates change daily – call for current quotations.

It is always important to work with an experienced mortgage professional who specializes in working with divorcing clients. A Certified Divorce Lending Professional (CDLP) can help answer questions and provide excellent advice. 

This information is shared in partnership with the Divorce Lending Association . Copyright 2019.

Topics: Divorce , Divorce and Your Mortgage

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Transferring a mortgage: How it works

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Key takeaways

• A mortgage transfer is when another person or an entity takes over your existing mortgage.
• Most mortgages are not transferable, but lenders may approve a transfer in a few situations.

In most circumstances, a mortgage can’t be transferred from one borrower to another. That’s because most lenders and loan types don’t allow another borrower to take over payment of an existing mortgage.

In some cases, though, a mortgage transfer is necessary and allowed, such as in the event of a death, divorce or separation, or when a living trust is involved.

What is a mortgage transfer?

A transfer of a mortgage is when a borrower reassigns an existing home loan to another person or entity.

“In essence, this transfers all responsibilities associated with the mortgage and lien on the property to somebody new,” says Rene Segura, head of consumer lending for FBX, the banking division of Informa Financial Intelligence, based in Dallas.

This transfer, or assignment, is usually only allowed when the mortgage is assumable , says Rajeh Saadeh, a Somerville, New Jersey-based real estate attorney. When transferring an assumable mortgage, the new borrower agrees to make all future payments at the original interest rate. The transfer typically severs any legal obligations the original borrower has to the loan.

How a transfer of mortgage works

When you transfer a mortgage, another person assumes the financial responsibility of repaying the outstanding loan balance, under the same terms and conditions. The monthly payment, loan length and interest rate will remain the same once the mortgage is transferred to the new borrower. After the successful transfer of a mortgage, the original borrower is usually relieved of any financial obligations for repaying the loan.

Transferring a mortgage has benefits for both the original borrower and the new borrower. For example, transferring a mortgage can help the original borrower avoid foreclosure if they’re unable to continue paying their loan. For the new borrower, assuming an existing mortgage can potentially help them get a better interest rate than what’s offered in the current market and avoid the closing costs required with a new mortgage.

Can I transfer my mortgage to another person?

The short answer is yes, you can transfer your mortgage to another person, but only under certain circumstances. To find out if your mortgage is transferable, assumable or assignable, contact your lender and ask.

“Most lenders would prefer not to do a loan transfer, as it doesn’t benefit them in any way unless the buyer is at risk of being in default,” says Dustin Singer, a real estate agent and an investor in Pittsburgh.

Make no mistake: Most mortgages are not transferable from one borrower to another. That’s true of conventional loans , which are not government-backed (meaning they’re not an FHA, VA or USDA loan), as well as conforming loans that meet funding criteria for Fannie Mae and Freddie Mac.

“These types of loans tend to use a due-on-sale clause , which requires a loan to be repaid in full or conveyance of the full interest in a property to allow the mortgage transfer,” says Segura. “In other words, the loan must be fully repaid, and a new mortgage would need to be executed to achieve a transfer.”

Loans that are usually assumable, meaning you can transfer them in some cases, include:

Keep in mind there are exceptions to this rule, so not all loans will be transferable.

“ FHA loans are typically assumable but depend on the current state of the loan and the creditworthiness of the new borrower at the time of attempted transfer,” says Segura, adding that to complete the transfer, the new borrower would have to go through the application process and may need to have a property appraisal done, as well.

For VA loans , this same process applies, but only if the loan closed before March 1, 1988. VA loans closed after that date may require approval by the lender or loan servicer.

USDA loans may also be transferable pending lender approval.

Exceptions to the rule

Even if your mortgage has a due-on-sale clause and isn’t assumable, there are certain circumstances under which your lender may approve a transfer. These include:

• Death of a spouse, joint tenant or relative
• Transfers between family members, including the borrower’s spouse or children
• Divorce or separation agreements in which an ex-spouse continues to live in the home
• Living trust arrangements in which the borrower is a beneficiary

For these mortgage transfers to work, the new borrower needs to be added to the property’s deed, the deceased owner needs to be removed from the deed or a spouse relinquishing ownership must sign a quitclaim deed.

When a mortgage transfer makes sense

There are several situations when transferring a mortgage might make sense. Some of those scenarios include:

• A family member has an ownership stake in the home: If an immediate family member has an ownership stake in the property, you might transfer the mortgage into their name.
• A family member is better suited financially to take on the loan: Transferring a mortgage can be a good solution if you have a family member who is in a better financial position to repay the loan.
• The original borrower has passed away: If the original mortgage borrower dies , it makes sense to transfer the loan to a relative or survivor who has the ability to pay it back.

“All of these scenarios are still on a case-by-case basis in which the lender will need to approve the transfer,” says Segura.

“Many people try to assume mortgages so they can take advantage of lower interest rates than what they would qualify for today,” says Than Merrill, founder of FortuneBuilders in San Diego.

How to transfer a mortgage

To learn how to transfer ownership of a house with a mortgage, you’ll need to talk to your lender and see if your mortgage qualifies for a transfer. Here’s how the process might look:

• Contact your lender. Before doing anything else, reach out to your lender to check that your mortgage is transferable.
• Consider legal representation. Transferring a mortgage can be complicated. If you’re nervous about doing it alone, you can hire an attorney to help you navigate the process.
• Begin the transfer process. After confirming your eligibility, you can work with your lender to start the transfer. Depending on your loan and lender, this can include completing paperwork and verifying that you’re current on your payments. The lender will also assess the new borrower’s credit profile.
• Complete the transfer. Mortgage transfers aren’t instant. Until yours is approved, don’t forget to keep making loan payments and comply with any follow-up instructions sent by your lender.

What are transfer taxes?

Some state and local governments impose a one-time real estate transfer tax that must be paid any time a property is transferred from one person to another. In many cases, the seller must cover transfer taxes, but this varies by jurisdiction. The amount of the tax also depends on where you live, but it’s usually either a flat rate or a percentage of your home’s sale price.

Alternatives to a mortgage transfer

Instead of transferring a mortgage, consider these alternatives:

• Buying the home from the original borrower : The person who wishes to assume the loan applies for a new mortgage and buys the home from the previous borrower. However, this means dealing with new loan terms and interest rates .
• Adding a second borrower : This option involves adding the new borrower to the loan. However, it won’t remove the original borrower, so they’ll remain liable for the debt.
• Refinancing and adding a borrower : Refinancing your mortgage and adding a second borrower lets you adjust the loan’s terms and rate. It may be easier to add another borrower by refinancing. However, this also has the drawback of not freeing the original borrower from their liability for the loan.
• Unofficial transfers : With this option, you can have the new borrower send payments to the original borrower, who then pays the loan. However, this is a bad idea because the initial borrower is liable for the debt and has little recourse if the new borrower stops paying. It may also break the terms of the mortgage, especially if the original borrower moves out.

Can I take over a mortgage from my parents?

Do i have to notify my lender of the transfer, why would a bank transfer a mortgage, bottom line.

Transferring a mortgage can simplify things: The new borrower wouldn’t have to apply for a new loan, pay for closing costs or possibly risk paying higher interest rates. However, many kinds of mortgages aren’t transferable, and if yours is, you’ll have to prepare for a lot of paperwork to make it official.

“The mortgage transfer will require a lot of documentation, with several new guidelines and criteria on the loan,” says Segura. “Read all documents thoroughly for any potential changes on the mortgage rights.”

Also, keep in mind that a mortgage transfer doesn’t change the debt obligation on the loan; the new borrower still needs to pay off the same outstanding balance.

If in doubt, consider discussing this option with a real estate attorney and skilled financial professional before proceeding.

Article sources

We use primary sources to support our work. Bankrate’s authors, reporters and editors are subject-matter experts who thoroughly fact-check editorial content to ensure the information you’re reading is accurate, timely and relevant.

“ Chapter 7. Assumptions " U.S. Department of Housing and Urban Development. Accessed on Jan. 24, 2024.

“ Rights of VA Loan Borrowers " U.S. Department of Veterans Affairs. Accessed on Jan. 24, 2024.

" Chapter 2: Overview of Section 502 " U.S. Department of Agriculture. Accessed on Jan. 24, 2024.

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Can You Transfer a Mortgage to Another Person? A Homeowners Guide

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• Published on April 26th, 2024
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Richard Haddad is the managing editor of HomeLight.com. He works with an experienced content team that oversees the company’s blog featuring in-depth articles about the home buying and selling process, homeownership news, home care and design tips, and related real estate trends. Previously, he served as an editor and content producer for World Company, Gannett, and Western News & Info, where he also served as news director and director of internet operations.

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At HomeLight, our vision is a world where every real estate transaction is simple, certain, and satisfying. Therefore, we promote strict  editorial integrity in each of our posts.

Whether planned or unexpected, life changes may have you pondering, “Can you transfer a mortgage to another person?” It’s a relevant question, especially in times when mortgage interest rates and home prices are high.

Whether you’re considering a transfer to a family member in a better financial position, dealing with the intricacies of a divorce, or facing the somber task of managing a property after a loved one’s passing, a mortgage transfer — or allowing someone to “ assume ” your mortgage — may be the solution you’re looking for.

In this guide, we’ll review what it means to transfer a mortgage, helping you make informed decisions about your home loan or home sale.

Partner With a Top Agent Familiar with Mortgage Transfers

Whether it’s to speed up your home sale or transfer your property to a family member, HomeLight can connect you with a top-performing local real estate agent who understands the ins and outs of assumable or transferable mortgages.

What does it mean to transfer a mortgage?

Transferring a mortgage, simply put, means passing the responsibility and rights of your home loan from you to another person. This is also referred to as “assuming” a mortgage. This process involves a new borrower taking over the existing mortgage under its current terms, including the remaining balance, interest rate, and repayment period. It’s not about creating a new mortgage but rather handing over the reins of the existing one.

By transferring a mortgage, the original borrower is typically released from their obligations, while the new borrower steps into their shoes, assuming all future payments and liabilities. This arrangement can be particularly appealing in times of high interest rates, as it can allow the new borrower to benefit from the potentially more favorable terms of an existing loan, rather than securing a new, higher-rate mortgage.

Is my mortgage transferable?

Determining whether your mortgage is transferable largely depends on the type of loan you have.

“There are certain mortgages that are not assumable [transferable],” says Eric Broesamle , a top Michigan real estate agent who has been helping homeowners for more than 20 years. “That’s something that you would need to find out first.”

Here’s a list of common mortgage types and their potential for transfer:

• FHA loans: These are typically assumable. As long as the person taking over the loan meets the lender’s credit and income requirements, an FHA loan can be transferred.
• VA loans: Also generally assumable, VA loans can be transferred to another eligible veteran or even a non-veteran — if they qualify. However, the process involves specific VA requirements and approvals.
• USDA loans: Similar to FHA and VA loans, USDA mortgages are often assumable. The new borrower must meet USDA’s eligibility criteria.
• Conventional loans : These are usually not assumable. Most conventional loans come with a “due on sale” clause, which requires the loan to be paid in full if the property is transferred. (More on this in an upcoming section.)
• Adjustable-rate mortgages (ARMs) : The ability to transfer these loans varies. While some ARMs may allow for assumption , you’ll need to check the specific terms of your loan agreement.
• Other loan types: Some other loan types, such as jumbo mortgages , may have specific clauses or terms regarding assumability. It’s essential to review your loan documents or consult with your lender.

Broesamle explains that “With the current high interest rates, [transferring a loan] is a great way to maintain a lower rate mortgage… It’s an excellent tool for this market.”

However, he cautions, even if your loan type is typically assumable, individual loan agreements may vary. Always check with your lender and review your mortgage documents to understand your specific situation. You should also know your home’s value before you agree to transfer a mortgage.

How does a transfer of mortgage work?

Transferring a mortgage involves a series of steps. Here’s what you can typically expect in the process:

• Review your mortgage terms: First, check your mortgage agreement to confirm if your loan is assumable. Look for any clauses related to transferring the mortgage.
• Contact your lender: Reach out to your mortgage lender to discuss the possibility of a transfer. They will provide specific requirements and procedures.
• Find or identify a qualified buyer: The person you’re transferring the mortgage to must qualify under your lender’s criteria, which usually involves credit and income checks.
• Gather necessary documentation: Both parties will need to provide various documents, such as proof of income, credit reports, and identification.
• Complete the assumption agreement: This legal document outlines the terms of the mortgage transfer. Both parties must agree and sign it.
• Undergo lender review: The lender will review the assumption agreement and the new borrower’s qualifications. This process might take some time.
• Pay assumption fees: There are usually fees associated with transferring a mortgage. These vary depending on the lender and loan type.
• Close the deal: Once approved, a closing date is set. At closing, the transfer is finalized, and the new borrower assumes responsibility for the mortgage.
• Update property records: Finally, ensure that property records are updated to reflect the new mortgage holder. This step is important for legal and tax purposes.

“You can pretty much do any price range,” says Broesamle, who works with 74% more single-family homes than the average agent in his Mount Clemens market. “You’re not going to have a specific price point that’s really going to hold you back with an assumable mortgage.” But he adds that the person you are transferring the mortgage to must be able to qualify for the remaining loan amount.

If my loan is transferred, am I clear of the loan debt?

A key concern for sellers considering a mortgage transfer is whether they’ll be completely free from the loan debt after it’s completed. The answer in most cases is yes. When handled correctly and thoroughly, or with the help of a professional service, assuming a loan relieves the original borrower of the debt responsibility.

The proper process will include getting a “ release of liability ” from your lender. This legal step removes your obligation for the mortgage once the new borrower assumes it.

VA loans: The ideal scenario for VA loan holders  is a veteran-to-veteran loan assumption, which can streamline the transfer and minimize the risk to their VA loan entitlement and future borrowing capabilities.

It’s crucial to consult with your lender for detailed information on obtaining a complete release from your mortgage debt in an assumption. Also, consider seeking advice from legal or financial advisors to ensure your interests are safeguarded. There are also new products and programs entering the market to help walk buyers and sellers through the assumption process.

What might prevent me from transferring a mortgage?

Transferring a mortgage isn’t always straightforward. Several factors could impede this process:

• “Due on sale” clause: Many mortgages, especially conventional loans, include a “ due on sale ” or “due on transfer” clause, requiring the full loan balance to be paid when the property is sold or transferred. (More on this below and when there might be exceptions to this rule.)
• Lender’s approval requirements: Even if your mortgage is assumable, the new borrower must meet specific credit and income standards set by the lender.
• State and local laws: Some jurisdictions have specific regulations that might affect mortgage transfers.
• Loan type: As discussed earlier, not all mortgage types are assumable. Conventional loans, for example, are typically not transferable.
• Financial instability of the new borrower: If the new borrower does not have a stable financial background or a good credit score , the lender might reject the transfer.
• Outstanding liens or judgments: Existing liens or judgments against the property can complicate the transfer process.

Broesamle says one of the most common obstacles in a mortgage transfer is the creditworthiness of the person assuming the mortgage. Even though it’s a transfer, “the person taking over the loan still has to get approved for it,” he explains. “Once they speak to the lender, we’ll know exactly what they’re approved for as well. After you’ve cleared that [hurdle], it’s definitely a valuable option.”

What is the ‘due on sale’ or ‘due on transfer’ clause?

The “due on sale” or “ due on transfer ” clause in a mortgage agreement requires that the remaining balance of the mortgage be paid in full if the property is sold or transferred. This clause is designed to protect lenders by ensuring that the loan is paid off or refinanced at the current market rate when the property changes hands. Essentially, it prevents the mortgage from being assumed by someone else without the lender’s consent.

Misunderstanding this clause — or not being aware of it — are common hurdles in mortgage transfers. However, there are special circumstances where exceptions can be made. We explore those in the next section.

Special circumstances: Exceptions to a ‘due on sale’ clause

There are instances where a mortgage can be transferred even if it has a “due on sale” clause. In certain circumstances, lenders may show flexibility or the contract might allow exceptions. Here are some scenarios where a mortgage transfer might still be possible:

• Death of a spouse, other relative, or a joint tenant: In the event of the death of a spouse, a close relative, or a joint tenant, the mortgage can often be transferred to the surviving individual. This allows for the continuation of the mortgage under the new owner.
• Transfers between family members: A mortgage might be transferable in cases where it’s being passed on to immediate family members, including the borrower’s spouse or children. Lenders may be more accommodating in these family-related transfers.
• Divorce or separation agreements: If a couple is going through a divorce or separation, and one party is keeping the home, the mortgage might be transferable to the individual who will continue residing there. This arrangement is often detailed in the divorce or separation agreement.
• Living trust arrangements: When a borrower has a living trust in which they are a beneficiary, the mortgage can often be transferred into the trust without activating the “due on sale” clause. This is a common estate planning tool and allows the mortgage to be handled within the trust structure.

It’s important to note that while these exceptions can provide opportunities for mortgage transfer, they still require careful navigation and often involve legal and financial considerations. It’s recommended to consult with a legal or financial advisor to understand the specifics of your situation and to ensure compliance with all requirements.

When might a mortgage transfer be a good solution?

Mortgage transfers can be an effective solution in various situations. Understanding when it’s advantageous can help you make a more informed decision. Consider a mortgage transfer if:

• You’re going through a divorce, and one partner wishes to keep the family home.
• A family member is in a better financial position to handle the mortgage payments.
• You’re transferring property to your children as part of estate planning or inheritance.
• A relative or close friend is willing to take over the mortgage to prevent foreclosure.
• You’re relocating for work or personal reasons but want to keep the property in the family.
• A loved one has passed away, and you’re inheriting a property with an existing mortgage.
• You’re facing financial difficulties and need to reduce your debt responsibilities without selling the property.

Tax note: If your desire to transfer a property to a family member involves giving them the home for a price lower than market value —  or even as a gift — there can be tax consequences. To learn more, see our post: How to Assume a Mortgage from a Family Member .

Each of these scenarios presents a unique set of circumstances where transferring a mortgage could be beneficial, both financially and personally. It’s important to consider the long-term implications before proceeding.

What are mortgage transfer taxes?

Mortgage transfer taxes are state and local government fees imposed on the transfer of property ownership, including when a mortgage is assumed by someone else. These taxes can vary significantly depending on where the property is located, as each state and locality has its own rules and rates. Here are key points to consider about mortgage transfer taxes:

• Not universal: Not all states or localities impose mortgage transfer taxes. Be certain to check the specific regulations in your area.
• Varied rates: Where they do exist, the rates can range from a small flat fee to a percentage of the property’s sale price or mortgage amount.
• Paid at closing: Transfer taxes are typically paid during the closing process of the mortgage transfer.
• Potential exemptions: Some states offer exemptions or reduced rates under certain conditions, such as transfers between family members.

It’s advisable to consult with a real estate attorney or a tax advisor to understand the specific tax implications for your situation.

What if my mortgage is not transferrable? Are there alternatives?

If you find that your mortgage is not transferrable, don’t lose hope. There are several alternatives you can consider:

• Refinancing your loan: This involves taking out a new mortgage to replace the existing one. It can be a viable option if you’re looking for better terms or rates. The new loan could be in the name of the person you initially intended to transfer the mortgage to, assuming they qualify.
• Selling your home: If transferring the mortgage isn’t an option, selling the property is a straightforward way to move on. The proceeds from the sale can be used to pay off the existing mortgage. You might even consider a cash offer company .
• Transferring into a trust: Placing your property into a living trust can be a strategic move for estate planning. While this doesn’t transfer the mortgage in the traditional sense, it can help manage the property’s future.

Unofficial transfers: A risky alternative

Another option that some consider is an “ unofficial transfer .” This arrangement involves keeping the mortgage in your name while having another person live in the property and reimburse you for the mortgage payments. However, this method comes with significant risks:

• Breach of mortgage agreement: Most mortgage agreements have clauses that prohibit unofficial transfers. If your lender discovers this arrangement, they could demand immediate full repayment of the loan or take legal action.
• Legal and financial risks: If the person living in your home stops making payments to you, you’re still legally responsible for the mortgage. This can lead to financial strain and potential foreclosure.
• Insurance and tax complications: Keeping the mortgage in your name while someone else lives in the property can lead to complications with homeowners’ insurance and property taxes.

Should I transfer a mortgage to another person?

Deciding whether to transfer a mortgage to another person is a significant decision that requires careful consideration of your financial situation, future plans, and the potential impact on all parties involved. Here are a few key points to ponder:

• Assess the benefits: Evaluate how a mortgage transfer could benefit you and the potential new borrower. Consider factors like interest rates, financial stability, and long-term commitments.
• Understand the potential risks: Be aware of the legal and financial risks associated with a mortgage transfer, especially if considering an unofficial arrangement.
• Review alternatives: Consider other options like refinancing, selling, or setting up a trust, particularly if the mortgage is not transferable.
• Consult professionals: For a financial transaction of this size, it’s always recommended to seek advice from real estate attorneys, financial advisors, and mortgage professionals.

Broesamle suggests that partnering with a top real estate agent can also be wise to streamline the entire process and provide tailored advice based on your unique circumstances.

“An agent can handle all the paperwork, getting them in touch with the right lender, the right title company that’s going to do the deal and do it seamlessly. It’s not going to stress them out,” he explains. “That’s the biggest thing for me, making sure that my client is comfortable and happy at the end of the process.”

Ultimately, transferring a mortgage can be a viable solution in certain situations, but it requires a thorough evaluation of the risks and benefits. Making an informed decision will help ensure that this financial move aligns with your long-term goals and provides a secure solution for all involved.

Header Image Source: (Alec Krum / Unsplash)

Richard Haddad

Managing Editor

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Handling Debt After A Divorce

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Navigating House Options During a Divorce

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Divorce is not just an emotional upheaval but also a time of significant financial and legal decisions. It’s especially true when it comes to shared housing.

The marital home is often more than just an asset. It’s a repository of memories and dreams. Deciding what to do with it during a divorce can be particularly challenging. Selling while divorcing can be as tricky and stressful as it is.

The complexity of emotions and the need for financial security require careful consideration and, often, tough decisions.

Whether selling the house, buying out one spouse, or opting for co-ownership, each path has its implications, benefits and challenges. 

Over many years in the business, I have been asked how the house is split in divorce. There is no exact answer, as every situation is different.

We will provide a clear guide through the options. The guidance will help divorcing couples understand the potential impacts of each choice.

The tips will allow you to navigate this complex terrain more confidently and clearly.

Understanding the emotional and legal complexities

The decision of what to do with the marital home during a divorce intertwines emotional and legal complexities.

Emotionally, the house represents stability, memories and a sense of place, making the thought of parting with it daunting.

The stress is compounded by the need to untangle shared lives and assets under the scrutiny of legal proceedings.

Legally, the house is viewed as a marital asset. It is subject to division according to state laws, which vary widely and can significantly influence decisions.

It’s crucial to consult with a legal professional to understand your rights and obligations. This advice is pivotal in navigating the legal intricacies. Understanding how your state handles property division (equitable distribution vs. community property) to know what legal and financial documents are required.

The emotional weight should be acknowledged and managed. You may want the help of a therapist or support group to ensure decisions are made rationally and in the best financial interests of both parties.

Option 1: Selling the house

Benefits of selling: Selling the marital home during a divorce is often considered a clean break. The split allows both parties to start anew. Financially, it can provide each individual with liquidity, possibly aiding in purchasing new, separate residences.

It also removes the burden of upkeep and mortgage payments for a property that might be too large or expensive for one person to maintain post-divorce.

Steps to sell the house

• Agree on a real estate agent: Both parties should agree on a trustworthy and experienced agent. This will ensure the sale process is handled professionally. REALTORS® should be prepared for questions .
• Set a price: Considering any selling urgency, the price should be based on a professional appraisal and market analysis. Never rely on a home value estimator such as Zillow or Redfin. These are not accurate home values.
• Prepare the home for sale: This might involve repairs or cosmetic improvements to enhance the property’s appeal and value.
• Manage offers: Offers should be considered carefully, ideally with the real estate agent’s and legal counsel’s guidance. Doing so ensures fairness and legal compliance.

How to split the proceeds: The divorce agreement should outline the division of proceeds from the sale. The contract should consider factors such as each party’s contribution to the home’s purchase and maintenance and any outstanding mortgage or debts tied to the property.

Option 2: Buying out one spouse

How to determine the buyout amount: The buyout amount is typically based on the home’s current market value. It is generally arrived at by a professional appraiser.

From this value, any outstanding mortgage or liens are subtracted. The remaining equity is then divided according to the couple’s agreement or court decision. It provides the buyout amount for the departing spouse.

Financing options for the buying spouse: The spouse who wishes to keep the house must secure financing to pay the buyout amount. Options include:

• Refinancing the mortgage: Obtain a new mortgage solely in their name. This might also offer the opportunity to secure a better interest rate or loan terms.
• Home equity loan or line of credit: If sufficient equity exists in the home, this can provide the necessary funds but requires careful consideration of the additional debt burden.

Legal and tax considerations: The buyout process should be executed with clear legal agreements to protect both parties. It should include the transfer of the title and any changes in mortgage responsibilities.

Tax implications, especially regarding capital gains tax, should be considered, potentially offering tax breaks if appropriately structured.

Option 3: Co-ownership

Scenarios where co-ownership might work: Co-ownership might be viable if both parties are amicable and financially stable. Maintaining stability for children until a certain age could be critical.

It requires high trust and communication, as both parties remain financially and legally tied to the property.

Setting terms and conditions for co-ownership: A detailed co-ownership agreement should be drafted, outlining the following:

• Financial responsibilities: Who pays for mortgage, taxes and maintenance? How expenses are shared?
• Usage rights: If one party lives in the house, what are the terms of use? Is there any rent or compensation to the other party?
• Decision-making: How decisions about the property are made, including potential sale or changes.

Managing the property and exit strategies: Regular communication and a joint account for property-related expenses can help manage the property effectively.

An exit strategy should be part of the co-ownership agreement. It should detail scenarios like wanting to sell, buying the other out, or what happens if one party cannot meet their financial obligations.

Only then will the spouse leaving be prepared to buy another house .

Navigating housing options during a divorce is a multifaceted challenge, blending emotional, financial and legal aspects.

Whether selling the house, buying out one spouse, or choosing co-ownership, each option demands careful consideration and, often, professional guidance.

It’s essential to weigh the benefits and responsibilities, understand the legal implications and manage the emotional aspects thoughtfully.

Remember, the goal is to make a decision that provides both parties with a foundation for their post-divorce lives.

Seeking advice from legal, financial and real estate professionals can provide clarity. It paves the way for a decision that aligns with your unique circumstances and long-term well-being.

Bill Gassett

Bill Gassett is the owner and founder of Maximum Real Estate Exposure.

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Title Transfers and Changes

To prove vehicle ownership, it’s important to have a valid, up-to-date, and accurate California Certificate of Title. Here’s how you can transfer and change a title. 

Transfer your Title online!

You can now transfer a title online. Learn more about the steps and get started.

How to Transfer a Title

Anytime there’s a change to a vehicle or vessel’s registered owner or lienholder, that change must be updated in DMV’s records within 10 days and the California Certificate of Title must be transferred to the new owner.

A change in ownership is usually due to:

• Sale, gift, or donation
• Adding or deleting the name of an owner
• Inheritance
• Satisfaction of lien (full payment of car loan)

To transfer a title, you will need:

• Either the California Certificate of Title or an Application for Replacement or Transfer of Title (REG 227) (if the title is missing). 
• The signature(s) of seller(s) and lienholder (if any).
• The signature(s) of buyer(s).
• A transfer fee .

Depending on the type of transfer, you might need to complete and submit additional forms. See below for other title transfers and title transfer forms.

Submit your title transfer paperwork and fee (if any) to a DMV office or by mail to: 

DMV PO Box 942869 Sacramento, CA 94269

Rush Title Processing

If you need us to expedite your title processing, you can request rush title processing for an additional fee.

Transfer Fees

Depending on the type of transfer, you may need to pay the following fees:

• Replacement title
• Use tax, based on the buyer’s county of residence
• Registration

See the full list of fees .

Renewal fees and parking/toll violation fees don’t need to be paid to issue a replacement California Certificate of Title.

Title Transfer Forms

These forms may be required when transferring ownership of a vehicle or vessel:  Application for Replacement or Transfer of Title (REG 227) Vehicle/Vessel Transfer and Reassignment (REG 262) form (call the DMV’s automated voice system at 1-800-777-0133 to have a form mailed to you) Statement of Facts (REG 256) Lien Satisfied/Title Holder Release (REG 166) Notice of Transfer and Release of Liability Smog certification Vehicle Emission System Statement (Smog) (REG 139) Declaration of Gross Vehicle Weight (GVW)/Combined Gross Vehicle Weight (CGW) (REG 4008) Affidavit for Transfer without Probate (REG 5) Bill of Sale (REG 135) Verification of Vehicle (REG 31)

Other Title Transfers

When you’re buying a new car or a used car from a dealership, the dealer will handle the paperwork and you’ll receive your title from DMV in the mail.

When vehicle ownership is transferred between two private parties, it’s up to them to transfer the title. If you have the California Certificate of Title for the vehicle , the seller signs the title to release ownership of the vehicle. The buyer should then bring the signed title to a DMV office to apply for transfer of ownership. 

If you don’t have the California Certificate of Title , you need to use an Application for Replacement or Transfer of Title (REG 227) to transfer ownership. The lienholder’s release, if any, must be notarized. The buyer should then bring the completed form to a DMV office and we will issue a new registration and title.

Make sure you have all signatures on the proper lines to avoid delays.

Other Steps for the Seller When Vehicle Ownership is Transferred

• 10 years old or older.
• Commercial with a GVW or CGW of more than 16,000 pounds.
• New and being transferred prior to its first retail sale by a dealer.
• Complete a Notice of Transfer and Release of Liability (NRL) within 5 days of releasing ownership and keep a copy for your records.

Once the seller gives the buyer all required documentation and DMV receives the completed NRL, the seller’s part of the transaction is complete.

*If the vehicle has been sold more than once with the same title, a REG 262 is required from each seller.

Other Steps for the Buyer When Vehicle Ownership is Transferred

• Current registered owner(s), how names are joined (“and/or”), and lienholder/legal owner (if any).
• License plate number, vehicle identification number (VIN), make, model, year, and registration expiration date.
• Title brands (if any).
• Words “Nontransferable/No California Title Issued,” indicating a California title was not issued and a REG 227 cannot be used (see FAQs).
• Get a smog inspection (if applicable).

Once the buyer has provided the DMV with all the proper documents and fees, the vehicle record is updated to reflect the change of ownership and a registration card is issued.

A new title is issued from DMV headquarters within 60 calendar days.

To transfer a vehicle between family members, submit the following:

• The California Certificate of Title properly signed or endorsed on line 1 by the registered owner(s) shown on the title. Complete the new owner information on the back of the title and sign it.
• A Statement of Facts (REG 256) for use tax and smog exemption (if applicable).
• Odometer disclosure for vehicles less than 10 years old.
• Transfer fee .

You may transfer a vehicle from an individual to the estate of that individual without signatures on the Certificate of Title.

Submit the following:

• The California Certificate of Title. On the back of the title, the new owner section must show “Estate of (name of individual)” and their address. Any legal owner/lienholder named on the front of the title must be re-entered on the back of the title.
• A Statement of Facts (REG 256) confirming the owner is deceased and Letters Testamentary have not been issued. The person completing the statement must indicate their relationship to the deceased.

Use tax and a smog certification are not required.

Vehicle ownership can be transferred to a deceased owner’s heir 40 days after the owner’s death, as long as the value of the deceased’s property in California does not exceed:

• $150,000 if the deceased died before 1/1/20.
• $166,250 if the deceased died on or after 1/1/20.

If the heir will be the new owner, submit the following to a DMV office:

• The California Certificate of Title. The heir must sign the deceased registered owner’s name and countersign on line 1. The heir should complete and sign the back of the title.
• Affidavit for Transfer without Probate (REG 5) , completed and signed by the heir.
• An original or certified copy of the death certificate of all deceased owners.

If the heir prefers to sell the vehicle, the buyer also needs (in addition to the items above):

• Bill of Sale (REG 135) from the heir to the buyer.
• Transfer fee (two transfer fees are due in this case).

To transfer vessel ownership, submit the following:

• The California Certificate of Ownership. The registered owner signs line 1. The legal owner/lienholder (if any) signs line 2. Complete the new owner information on the back of the certificate and sign it.
• Bill(s) of sale, if needed to establish a complete chain of ownership.
• A Vessel Registration Fee .
• Use tax based on the tax rate percentage for your county of residence.

After you sell a vessel, complete a Notice of Transfer and Release of Liability (NRL) within five days of releasing ownership and keep a copy for your records.

How to Update or Change a Title

Because a California Certificate of Title is a legal document, it is important to keep it accurate and up-to-date. Here’s how you can update or change a title. 

Order a Replacement California Certificate of Title

You must order a replacement California Certificate of Title when the original is lost, stolen, damaged, illegible, or not received. 

To order a replacement title, submit the following:

• Application for Replacement or Transfer of Title (REG 227) .
• The original title (if you have it).
• California photo driver license (if submitting form in person).
• Replacement title fee .
• If another replacement title was issued in the past 90 days, a Verification of Vehicle (REG 31) completed by the California Highway Patrol (CHP). This requirement only applies if the registered owner’s name or address doesn’t match DMV records*.

You can submit your application either in-person* at a DMV office or by mail:

Department of Motor Vehicles Registration Operations PO Box 942869 Sacramento, California 94269-0001

If you’re submitting your form to a DMV office, we recommend you make an appointment so you can avoid any lines. 

You’ll receive your title by mail 15-30 calendar days from the date you submit the replacement title application.

*If you’re applying for a replacement title and the registered owner’s name or address doesn’t match DMV records (except for obvious typographical errors), you must submit your application in person with proof of ownership (e.g. registration card) and an acceptable photo ID (e.g. driver’s license/ID card).

Online Replacement Title Request

Visit our Virtual Office to request a replacement title online.

Change or Correct a Name on a Title

Your true full name must appear on your vehicle or vessel California Certificate of Title and registration card. If your name is misspelled, changes (e.g as a result of marriage or divorce), or is legally changed, you need to correct your name on your title.

To change or correct your name, submit:

• California Certificate of Title with your correct name printed or typed in the “New Registered Owner” section
• A completed Name Statement in Section F of the Statement of Facts (REG 256) .

You may submit your application to any DMV office or by mail to:

Department of Motor Vehicles Vehicle Registration Operations PO Box 942869 Sacramento, CA 94269-0001

Removing Information that was Entered by Mistake

If a name or other information is entered on a title by mistake, complete a Statement to Record Ownership (REG 101) .

Frequently Asked Questions

If the vehicle has a legal owner/lienholder, then section 5 of the REG 227 needs to be notarized. If the registration does not show a legal owner/lienholder, notarization is not required.

Need help finding the lienholder on your vehicle title? We keep a listing of banks, credit unions, and financial/lending institutions that may have gone out of business, merged, changed their name, or been acquired by another financial institution.

No. You must obtain a title from the state where the vehicle was last titled.

If you’re unable to obtain a title from that state, provide documentation that they cannot issue a title. A motor vehicle bond may be required

Contact us for more information .

Need something else?

Fee calculator.

Use our fee calculator to estimate any applicable registration or title transfer fees.

Renew Your Vehicle Registration

You need to renew your vehicle registration every 1-5 years in California, depending on the vehicle. Make sure your registration is up-to-date.

Make an Appointment

Some applications can be submitted to a DMV office near you. Make an appointment so you don’t have to wait in line.

General Disclaimer

When interacting with the Department of Motor Vehicles (DMV) Virtual Assistant, please do not include any personal information.

When your chat is over, you can save the transcript. Use caution when using a public computer or device.

The DMV chatbot and live chat services use third-party vendors to provide machine translation. Machine translation is provided for purposes of information and convenience only. The DMV is unable to guarantee the accuracy of any translation provided by the third-party vendors and is therefore not liable for any inaccurate information or changes in the formatting of the content resulting from the use of the translation service.

The content currently in English is the official and accurate source for the program information and services DMV provides. Any discrepancies or differences created in the translation are not binding and have no legal effect for compliance or enforcement purposes. If any questions arise related to the information contained in the translated content, please refer to the English version.

Google™ Translate Disclaimer

The Department of Motor Vehicles (DMV) website uses Google™ Translate to provide automatic translation of its web pages. This translation application tool is provided for purposes of information and convenience only. Google™ Translate is a free third-party service, which is not controlled by the DMV. The DMV is unable to guarantee the accuracy of any translation provided by Google™ Translate and is therefore not liable for any inaccurate information or changes in the formatting of the pages resulting from the use of the translation application tool.

The web pages currently in English on the DMV website are the official and accurate source for the program information and services the DMV provides. Any discrepancies or differences created in the translation are not binding and have no legal effect for compliance or enforcement purposes. If any questions arise related to the information contained in the translated website, please refer to the English version.

The following pages provided on the DMV website cannot be translated using Google™ Translate:

• Publications
• Field Office Locations
• Online Applications

Please install the Google Toolbar

Google Translate is not support in your browser. To translate this page, please install the Google Toolbar (opens in new window) .

Can one spouse assume the mortgage releasing the ex-spouse from future liability?

With rising mortgage interest rates, many divorcing homeowners ask, “Can I assume the existing mortgage?” By assuming the existing mortgage post divorce, one spouse hopes to eliminate the need to refinance while keeping the current mortgage terms including lower interest rate, remaining balance, and time paid in.

If only it were this easy!

An assumable mortgage is a loan that can be transferred from one party to another with the initial terms remaining in place. Not all mortgages are assumable. In most cases, the only assumable mortgages are FHA, VA, and USDA home loans. Conventional loans are not typically assumable.

Mortgage assumptions still require the current lender to approve the new borrower’s creditworthiness and ability to repay the mortgage. It isn’t as simple as one party agreeing to take over the mortgage. When transferring ownership of the marital home to a non-borrowing spouse, steps are needed to avoid an acceleration of the due on sale clause of the existing mortgage note.

Although the marital settlement agreement may determine who retains ownership of the marital home or other real property after the divorce is final, it is crucial to understand that the Deed, Decree, and Debt are three separate issues to settle.

The Deed and Transferring Ownership

A property owner can transfer their ownership of the real property to another party using a Quitclaim Deed 

or other instrument. When both parties are co-mortgagees on the mortgage note, no further action is typically needed when retaining the current mortgage.

However, it is essential to take action and notify the current mortgagor of the ownership transfer to avoid an acceleration of the mortgage due to a transfer of ownership when the party retaining the home is not obligated on the current mortgage note.

A word of caution; if the vacating spouse wants to remain on the deed to the real property until their name is removed from the mortgage, the mortgage financing options available to the vacating spouse may be limited. Please refer to a CDLP™ to determine any impact on the vacating spouse.

The Garn-St Germain Depository Institutes Act of 1982 protects consumers from mortgage lenders enforcing the due-on-sale clauses in their mortgage loan documents when the transfer of ownership includes transfers to a spouse, or children of the borrower, transfers at divorce or death, the granting of a leasehold interest of three years or less not containing an option to purchase and the transfer into an inter vivos trust (or a living trust) where the borrower is a beneficiary.

When one spouse is awarded the marital home and ownership is transferred solely to that spouse, leaving the current mortgage intact, the receiving spouse agrees to take sole responsibility for the mortgage payments through the assumption process. A loan assumption allows a transfer of ownership and leaves the loan intact at the same interest rate, loan terms, and balance.  However, legally assuming responsibility for paying the existing mortgage is often confused with loan assumption, where the original mortgagee is released from further liability.

Assumption & Release of Liability  

When a former spouse assumes ownership of the home and the mortgage, this does not always mean the mortgage lender will release the original borrower from their financial obligation or liability. A loan assumption is a transaction in which a person (the “assumptor”) obtains an ownership interest in real property from another person and accepts responsibility for the terms, payments, and obligations of that other person’s mortgage loan. The assumptor is liable for the outstanding debts, and unless a release of liability is requested, the original borrower will also remain liable.

In some assumptions, the lender may release the original borrower from their obligation on the promissory note. However, in most cases, the original borrower remains liable on the mortgage note. This means that, depending on state law and the circumstances of the particular case, if the new owner stops making mortgage payments in the future and goes into foreclosure, the lender may come after the original borrower for a deficiency judgment to collect the debt.

Does knowledge make a difference? Simple answer: Yes!

A CDLP ™ offers experience, value, insight, and contextual information to close the gap in negotiations.

A CDLP ™ possesses the knowledge to help divorcing homeowners make more informed decisions regarding their home equity solutions.

A CDLP ™ maintains the practical skills to apply their knowledge to specific situations involving divorce.

How are you incorporating Divorce Mortgage Planning into negotiating and settling your divorce cases where real property is involved? Divorce Mortgage Planning can help divorcing homeowners get from where they are now to where they want to be by exploring and evaluating their strategic opportunities.

Involve a CDLP ™ early in the settlement process for collaborative problem-solving, leading to better outcomes.

Knowledge is a game changer.

This is for informational purposes only and not for the purpose of providing legal or tax advice. You should contact an attorney or tax professional to obtain legal and tax advice. Interest rates and fees are estimates provided for informational purposes only, and are subject to market changes. This is not a commitment to lend. Rates change daily - call for current quotations.  The information contained in this newsletter has been prepared by, or purchased from, an independent third party and is distributed for consumer education purposes .

Copyright 2022—All Rights Divorce Lending Association

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The Divorce Mortgage Planning Journal is your essential resource for the latest insights, strategies, and professional wisdom in divorce planning and mediation.

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• Best Divorce Lawyers Memphis, TN

Best Divorce Lawyers Memphis, TN Of 2024

Published: Jun 6, 2024, 11:35am

When you got married, you were planning to spend your whole life with your spouse. Unfortunately, roughly half of all marriages end in divorce in the United States, and that statistic is no different in Memphis. When it becomes clear that your marriage is running out of time, you will want to hire a good lawyer as soon as possible.

This list of the best divorce lawyers in Memphis is a good start to finding the representation you need.

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Best Divorce Attorneys in Memphis

Compare top divorce attorneys, filing for divorce in tennessee, how can an attorney help you, how to find the best divorce lawyer in memphis, methodology, frequently asked questions (faqs), j. steven anderson, stevan l. black, scott j. crosby, jessica f. ferrante, sheree l. hoffman, erin k. o’dea, patricia m. worley.

Tennessee Bar Association Status

Year Admitted to Tennessee Bar

Law School Attended

The University of Memphis Cecil C. Humphreys School of Law

Memphis native J. Steven Anderson has practiced family law since 1983. Anderson is often found on the lecture circuit discussing specific issues that arise during divorces. He is a former Special Judge in the General Sessions Court and Chancery Court of Shelby County and a member of the Executive Committee of the Family Law Section of the Tennessee Bar Association. He is a fellow of the Memphis Bar Foundation.

• Previously served as co-chair of the Memphis Bar Association Continuing Legal Education Committee
• Member of the Enhanced Child Support Enforcement Committee for the Tennessee Department of Human Services
• Past president of Germantown-Nonconnah Exchange Club
• Premarital agreements
• Post-divorce issues

The University of Tennessee College of Law

Stevan L. Black is a Memphis family law attorney with over 50 years of experience. He is particularly knowledgeable about the complex tax issues that can arise during divorces and has lectured extensively to other lawyers about handling these situations. He is a Tennessee Supreme Court Rule 31 Listed Family Mediator.

• Recipient of the Distinguished Service Award from the Mississippi State University Alumni Association
• Member of the National Association of Distinguished Counsel
• Recipient of the Orpheus Award from the Memphis Development Foundation
• Modification of child custody

University of Virginia School of Law

Scott J. Crosby has extensive trial experience, having tried cases in federal and state courts in Mississippi, Alabama, Arkansas, Florida, Tennessee and Georgia. Crosby started his career as a tax attorney in the U.S. Department of Justice. That experience with tax law is invaluable to his clients. He is a recipient of the Tax Division Outstanding Attorney Award and a Department of Justice Special Achievement Award and is a fellow of the Memphis Bar Foundation.

• President of the Memphis Collaborative Alliance
• Trustee of the Grace St. Luke’s Episcopal School
• Board member and past chair of the Salvation Army Memphis Area Command
• Commercial and business litigation

Jessica F. Ferrante is a family law attorney who serves clients in both Tennessee and Mississippi. She is a Rule 31 Mediator. Memphis Magazine named her Women to Watch. She was named one of the 10 Best Attorneys in Tennessee in three separate years by the American Institute of Family Law Attorneys, as well as one of their Top 10 Under 40 Attorneys in Tennessee.

• Hearing Committee Member for the Board of Professional Responsibility, Division IX
• Named one of Memphis’ Finest Young Professionals by the Cystic Fibrosis Foundation
• Admitted to practice in Tennessee and Mississippi
• Divorce mediation
• Domestic violence

Sheree L. Hoffman has decades of experience in family law. She regularly publishes and speaks about issues like child psychology and mediation. Hoffman remains focused on her cases from start to finish, which is most apparent in cases like Tyler P. et al., where she won an appeal, preventing her client from losing custody of her children. She is approved as a Rule 31 mediator in civil and family law cases and has special training in domestic violence.

• Approved as a mediator by the Tennessee Supreme Court, Alternative Dispute Resolution Commission
• Recipient of Mediation Day Proclamation Day by Mayor Wharton
• Co-chair of the Mediation Association of Tennessee, Memphis Chapter
• Board of Governors member of the Tennessee Trial Lawyers Association

Megan Lane’s 10 years of experience is focused on dispute resolution and litigation in family law issues like divorce and child support enforcement. She is the President of the Association for Women Attorneys.

• Member of the Memphis Bar Association, Family Law Section
• Finalist for the Best of the Bar Ace Associate award
• Estate planning

Erin K. O’Dea has been practicing family law for over 10 years. O’Dea is active in many volunteer pursuits, often involving animal shelters. She assisted in developing and initiating a listserv for the Family Law Section of the Memphis Bar Association

• Member of the Family Law Section of the Memphis Bar Association
• Fosters dogs and cats in the Shelby County area
• Prenuptial agreements

Larry Rice has over 40 years of legal experience and is one of the most prolific continuing legal education instructors in the country. He is the author of multiple books used by divorce lawyers across the country. Rice has obtained hundreds of successful agreements and rulings in his career. He is a certified Family Trial Advocate by the National Board of Trial Advocacy and one of only two Family Law Specialist attorneys in Memphis. Memphis Magazine has recognized him as The Face of Divorce Law by Memphis Magazine every year since 2013.

• Founding chairperson of the Divorce and Family Law Section of the Memphis Bar Association
• Co-founder of the Family Section of the Tennessee Bar Association
• Received the Top 10 Attorney Award for Tennessee from the National Academy of Family Law Attorneys
• Military divorce

Nick Rice is the son of the previous attorney, Larry Rice. He is a Board Certified Family Law Trial Advocate by the National Board of Trial Advocacy and a former member of the Executive Council for the Family Law Section of the Tennessee Bar Association. He is a member of the American Society of Legal Advocates. He was named a Top 10 Under 40 by the National Academy of Family Law Attorneys and received the Premier 100 Award from the National Academy of Jurisprudence.

• Co-author of The Complete Guide to Divorce Practice
• Recognized as a Memphis Area Outstanding Young Lawyer in Family Law by the American Registry
• Supreme Court Rule 31 Family Law Mediator
• Family law enforcement

Patricia M. Worley devotes her practice exclusively to family law and mediation. Worley also gives back to her community by taking pro bono cases from clients in the Memphis area. She is listed as a Rule 31 Mediator

• Member of the Memphis Bar Association, Alternative Dispute Resolution
• Admitted to practice before the U.S. Supreme Court
• Board member of the Center for Parents and Children
• Child support and visitation

Getting divorced in Tennessee is relatively messy. It isn’t so difficult if both parties agree to the divorce, but if either party doesn’t want a divorce, Tennessee divorce laws make the dissolution of the marriage more challenging.

Tennessee Divorce Requirements

Tennessee allows for no-fault divorce if there are irreconcilable differences. Other grounds include:

• Drunkenness or drug abuse
• Living separately for two years without minor children
• Inappropriate marital conduct
• Desertion without reasonable cause for at least one year
• Felony conviction
• Discovery that the wife was pregnant by another party before the marriage
• Attempted murder of one’s spouse
• Separation for two or more years
• Either party being impotent or sterile
• Cruel and unusual behavior

Before filing for divorce , either the petitioner or the spouse must have lived in Tennessee for at least six months, and the reason for the divorce must have occurred while at least one party was living in Tennessee. That last requirement can make it difficult to legally file for divorce in some situations.

Types of Divorce and Separation in Tennessee

Tennessee has two types of divorce: contested and uncontested. In an uncontested divorce, both parties agree that they want to get divorced and agree to all terms of the divorce. These are typically no-fault divorces. In a contested divorce, the parties do not agree to the terms of the divorce, and the court must decide on all the issues. These can be fault or no-fault, depending on whether there are grounds for a fault divorce.

Tennessee also allows for legal separation. The grounds to file for legal separation are nearly identical to the grounds for filing for divorce, and a court can divide property and order custody arrangements in the same fashion as in a divorce. Parties that are legally separated cannot remarry (and dating is still considered adultery) but are otherwise effectively divorced.

Child Custody, Support and Visitation in Tennessee

Child custody, support and visitation can be determined either by a judge or by a negotiated agreement between the parents. Typically, if both parties in a divorce support a negotiated agreement, the judge will accept that agreement if it is in the best interests of the children, especially if those children are old enough to express a preference.

When child custody is contested, judges use several factors to determine support, custody and visitation which include the nature of the child’s relationship with each parent, whether a parent refuses to go to parenting classes, the needs of the child, the parents’ schedules and more. Typically, judges will favor joint custody when it is viable and safe for the child.

Property Division in Tennessee

Tennessee is an equitable division state. This means that marital property is divided in a fashion that the court considers fair rather than 50/50. Typically, the court begins by considering a 50/50 split, but then it adjusts that split based on the following factors:

• Duration of marriage
• Skills and earning capacity of each party
• Age and health of the parties
• Whether one spouse contributed to the education of the other
• Likely growth of future assets
• How each spouse contributed to the acquisition of marital property
• Value of each party’s separate property
• Tax and Social Security factors
• Other factors as appropriate

Additionally, as part of this distribution, a judge might assign alimony payments by considering many of the same factors.

Filing and Serving Your Divorce Papers

Filing for divorce is relatively simple. Assuming you meet the requirements, your divorce lawyers in Memphis only need to file papers with the county court. The Tennessee courts provide forms online that are legally sufficient for this purpose, but any appropriately drafted paperwork will do.

If the divorce is uncontested, you can file the papers with your spouse. Otherwise, you must serve the papers to your spouse. This document must be served in person, but anyone over the age of 18 and not a party to the divorce may serve them. Typically, Memphis divorce lawyers use a process server or ask the sheriff’s office to serve the papers.

Finalizing Your Divorce

There are two waiting periods when applying for divorce. The first waiting period occurs after you file. You must wait 60 days (90 days if you have minor children) before a judge will hear your case. Then, to finalize your divorce, you must wait another 30 days. These waiting periods apply to both divorce and separation.

Even if you and your spouse agree on all topics, it is a good idea to hire a Memphis divorce lawyer. If your spouse is opposed to the divorce, a lawyer is essential.

In the average scenario where you and your spouse disagree on topics, an experienced attorney can help mediate a solution that will get you most of what you want without having to let a judge decide.

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With so many divorce lawyers in Memphis, how can you find the right one for you? Read through this list and consider some of the following factors when choosing an attorney.

• Rule 31 mediation training . Rule 31 sets guidelines for dispute resolution in family law matters. It may be required in some divorces, which means you want a lawyer familiar with the process.
• Courtroom experience . Contested divorces are likely to end up in a courtroom at some point. If you expect a fight, you want a lawyer who has lots of experience in the courtroom.
• Bar admittance . Just because you are looking for a divorce lawyer in Memphis doesn’t mean you are getting divorced in Tennessee. Many Memphis divorce lawyers also practice in nearby states.

To come up with the best divorce lawyers in Memphis of 2024, Forbes Advisor considered many factors. Forbes Advisor’s mathematical analysis considers and weighs the information collected to calculate a specific rating and reviews these results to find the best attorneys in a given practice area.

Within the model, we take into account factors that legal professionals and consumers value in an attorney’s qualifications. After assigning weighted scores to hundreds of data points, we narrowed the field down to our top choices based on:

• Legal experience
• Special licenses and certifications
• Ethics and bar disciplinary measures
• Legal thought leadership
• Education and employment background
• Scholarly lectures and writings
• Awards and honors

Forbes Advisor collects public data from a variety of sources, including state bar associations, court records and other published sources on the internet. This information should not be considered comprehensive, however. It might not include additional relevant information on an attorney’s legal skills and experience.

Each lawyer listed here has their own merits. Bear in mind that our list relates to these lawyers’ legal backgrounds but does not evaluate their personalities or their knowledge of the law. One attorney may be more suitable than another for your specific legal situation.

One thing that can’t be quantified, though, is the rapport you establish with your attorney. Personality goes a long way when teaming up with an attorney, especially when going through a potentially difficult legal situation. These rankings should serve as a reference and potential starting point in your search for the right lawyer for you and your legal concerns.

As Hard As Divorce Might Be, An Online Divorce Service Can Make It Easy

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Can I date while separated?

You are technically still married, even if you received a legal separation. If you date during this time, you are technically committing adultery, which could become a factor if you later get divorced.

How long will a divorce take?

If you have no children and agree on all issues with your spouse, a divorce in Tennessee will take a little over 90 days to complete. However, if it is a contested divorce, it can easily take years to complete.

Is inherited property considered marital property in Tennessee?

Inherited property is considered separate property unless it is commingled with marital assets. If you wish to keep property separate, especially if you believe you might get divorced, you should consult with a lawyer about how to do that as soon as you inherit it.

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Sarah Edwards is a seasoned legal writer with more than a decade of experience. Edwards has a deep understanding of advanced legal concepts and a knack for conveying complex topics in simple language. She currently resides in Southern California with her husband and two children.

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Suspended Counterparty Program

FHFA established the Suspended Counterparty Program to help address the risk to Fannie Mae, Freddie Mac, and the Federal Home Loan Banks (“the regulated entities”) presented by individuals and entities with a history of fraud or other financial misconduct. Under this program, FHFA may issue orders suspending an individual or entity from doing business with the regulated entities.

FHFA maintains a list at this page of each person that is currently suspended under the Suspended Counterparty Program.

This page was last updated on 03/26/2024