After Your Divorce in El Paso
Getting Your Name Off of the Mortgage - Part 1
This article addresses what can happen when a divorcing couple agrees that one of the spouses will keep the house.
When divorce cases involving the house are contested, the typical result is a court order to put the house on the market and divide the net proceeds from the sale. But in agreed cases, it is not uncommon for divorcing couples to do a little bit of "horse trading."
For example, if the equity in the house is $60,000 and the value of the retirement account, already in the husband's name, is $70,000, the divorcing couple may decide to just "call it even."
In this example, the husband agrees to keep the retirement account and the wife keeps the house. The wife gives up $5000, which is her share of the $10,000 difference between the retirement account and the equity in the house. But in doing so, she eliminates the need to sell the house, move, and pay for a QDRO to divide the husband's retirement account.
Everybody is happy, right?
Not so fast.
The husband would like to get his name off of the mortgage. So, he does what his lawyer tells him to do. He signs the Special Warranty Deed and Deed of Trust to Secure Assumption. The Divorce Decree gives the house to the wife and the retirement account to the husband.
As far as the divorce is concerned, everything is done. But there is another step that must occur.