When a divorce settlement awards real estate to one spouse, the legal process doesn’t end there. The transfer of the property title must be handled correctly to ensure that ownership is fully and legally transferred. In New Jersey, many people are surprised to learn that a divorce agreement alone doesn’t change title ownership—it must be followed by specific legal actions. This article explains how to properly transfer property titles after divorce and avoid common pitfalls that can lead to delays, disputes, or complications down the road.
Divorce Agreements Don’t Automatically Change the Deed
The language in a divorce agreement may specify which spouse gets the home, but until the deed is legally updated, both spouses may still remain on record as owners. This can create confusion, especially when refinancing, selling, or applying for credit in the future. To legally complete the transfer of ownership, the appropriate deed must be executed and recorded with the county clerk’s office.
Using a Quitclaim Deed to Transfer Ownership
In most New Jersey divorces, a quitclaim deed is used to transfer property from one spouse to the other. A quitclaim deed allows one party to give up their legal interest in a property without making any promises or guarantees about the title itself.
Here’s how the process typically works:
- The spouse relinquishing ownership signs the quitclaim deed, giving up their interest in the property.
- The deed includes a legal description of the property, along with identifying information for both parties.
- The signed deed is notarized and then filed with the appropriate county clerk’s office in the county where the property is located.
- Once recorded, the spouse awarded the property becomes the sole legal owner.
It’s important to handle this step promptly—failure to record the deed can create title issues that affect future refinancing or sales.
Clearing Up the Mortgage and Financial Responsibility
A quitclaim deed only transfers ownership of the property—not the mortgage. If both spouses are listed on the mortgage and only one spouse keeps the home, that spouse should ideally refinance the mortgage into their own name.
Why refinancing matters:
- It removes the other spouse’s liability and credit risk.
- It ensures only the responsible party is tied to the ongoing mortgage payments.
- It can help secure better terms, depending on current market conditions.
If refinancing isn’t immediately possible, the divorce agreement should clearly outline responsibility for the mortgage and a timeline for eventual refinancing or sale.
What If There Are Title Issues?
Sometimes, a title search will reveal issues such as unpaid liens, judgments, or errors in previous deeds. Before any property transfer is finalized, it’s wise to consult a real estate attorney who can:
- Perform a title review
- Draft or review the deed
- Identify any potential title defects
- Guide you through the recording process
Clearing up these problems proactively can save time, money, and stress later.
Transferring property titles after divorce in New Jersey is a critical but often overlooked step. A properly executed and recorded quitclaim deed is essential for ensuring the rightful party takes full legal ownership. If you’ve been awarded property in your divorce or need help navigating the title transfer process, The Law Offices of Agnes Rybar LLC is here to help. We can draft the necessary documents, guide you through recording requirements, and ensure your property rights are protected. Contact us today to schedule a consultation and complete your divorce transition with confidence.
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