What is an interspousal transfer deed?
An interspousal transfer deed is a legal instrument used to provide sole ownership of a property that is owned jointly. This type of deed is commonly used in marriages, where one spouse wishes to transfer the title of a house or other real estate to the other. The technical term for this type of deed is an interspousal transfer grant deed, but the former term is more widely used. Different types include quitclaim deeds, warranty deeds, and special warranty deeds. For an interspousal transfer deed to be valid, it must meet certain requirements set out by state law. Generally speaking, both spouses must sign the document in front of a notary public and have it recorded with the county recorder's office. Additionally, both parties must agree on the terms and conditions outlined in the deed before it can be legally executed. Once all requirements are met, the deed will become effective and provide sole ownership rights to one spouse over the property in question.What is the interspousal transfer deed purpose?
Interspousal transfer deeds are regularly employed in divorce proceedings. This deed is utilized when community property has to be shifted onto one partner. For example, it is possible that both spouses held ownership of the asset or only one partner owned it. Still, due to community property legislation, it has been transferred to the other spouse as part of ending their marriage.
The partner still living in the home may choose to refinance it under their own name, or they could also decide to sell the property and give their ex-spouse a portion of that money. A shared home resolution for a previously shared property in a divorce differs from case to case.
Why should I choose an interspousal transfer deed?
Generally, interspousal transfer deeds are utilized in divorce cases to give possession of property from one partner to the other. In addition, interspousal transfers may be arranged if one spouse's credit problems negatively impact the other spouse's finances, even if the marriage is strong and healthy. This can help protect both spouses from potential financial issues caused by bad credit or other factors. It also ensures that both parties have access to their own assets and can make decisions about them independently. Interspousal transfers can benefit couples who want to maintain financial autonomy while still married.
Preparing Your Interspousal Transfer Deed
Whichever deed you do use, the steps are similar in nature. Below are the basic steps one might take.- Make sure the deed is in writing.
- List both spouses involved in the transfer.
- Record the property you want to transfer.
- Have the deed notarized.
- File the deed in your property's county office.
FAQ
Is there a time limit on using an interspousal transfer deed?For married couples, there is no deadline for transferring assets between spouses. However, an exception to divorce is that all property must be transferred within one year once the divorce has been finalized.
Why should I designate a deed as "Interspousal"?To avoid paying a transfer tax or having the real estate property re-assessed for state property taxes, it's important to label the deed "interspousal" when transferring property between spouses.
