Q: My ex-wife wants me to sign a quitclaim deed to the house that we presently own. We are both listed on the mortgage.
My question is will my signing a quitclaim deed now, in any way, affect the divorce decree that states that she agrees to sell or refinance the home within 5 years from the divorce date?
In other words, will the divorce decree in any way be potentially compromised by me signing away my rights to the home using a quitclaim deed?
A: If I were you, I wouldn’t sign a quitclaim deed to the property until your ex-wife refinances it and your name comes off the mortgage.
If you sign the quitclaim deed now, you give up all rights to the property — but you’ll still be legally on the hook for the mortgage payment each month. And if for some reason you are legally not on the hook for the payment, your credit history will be. That’s a losing scenario for you, particularly in a divorce where emotional baggage comes into play.
Instead, tell her that when she’s ready to refinance, you’ll be more than happy to sign the quitclaim deed at the closing. She won’t like it, but you’ll be protecting yourself.
Hi,
I have a question about the QC. My spouse is going to transfer the property of my name, I buy out the property from the 401k which I got from him. Does he also has to do the excise and taxation form too when property doesn’t sell at all and no capital gain happened. Please let me know as soon as possible , I will appreciate it. Thanks!
There shouldn’t be any taxes owed when one spouse transfers property to another. But it sounds as though you’re trying to buy the property from a former spouse (or soon-to-be former spouse) and use the 401k your spouse has transferred to you as “payment.” That’s got problems written all over it.
What you should immediately do is speak with your attorney (real estate or divorce) to make sure that what you’re doing won’t have extreme tax ramifications. For example, if you liquidate the 401k, you’ll owe federal and possibly state income taxes and perhaps a 10% penalty on top of it. That’s a very expensive way of buying a house. Instead, you should try to finance the property with a mortgage, and leave your 401k where it is.
A financial advisor who can look at all of your assets and make recommendations, is probably a helpful professional to tap right now.
Good luck.