Posted on: 19th Feb, 2009 11:46 am
My husband and I own two homes, one is our primary residence and the other is a rental property. All of our financial accounts are separate. The rental property was my first home before I married. A few years after marriage, I refinanced the rental and added my husband to the title. Now, I forsee financial problems for my husband in the near future and would like to have the rental back in my name only so it is hopefully not directly affected by whatever financial challenges he is up against. Worst case, liens placed on the property since it is an income property and he is on the title. Would a quitclaim deed take care of this? The mortgage company said we could request his name be removed from the mortgage for a fee and evidence of a recorded quitclaim deed. Once this happens, would the house still appear as an asset for my husband?
Hi Moosh,
A quitclaim deed could have transferred the title of the house back to you, but the problem is that a lien has already been placed. Any such transfer after a lien is placed can be considered as 'fraudulent conveyance' and the creditors can reverse such deed and sue the grantor.
A quitclaim deed could have transferred the title of the house back to you, but the problem is that a lien has already been placed. Any such transfer after a lien is placed can be considered as 'fraudulent conveyance' and the creditors can reverse such deed and sue the grantor.
Thanks for the reply. There are no liens, no bankruptcy, no judgements at this time. I just forsee that such things might happen in the future if my husband can't take care of this. Anticipating the worst, I'd like to protect this asset that was originally mine anyway.
Hi Moosh,
If there is no lien, no judgements against the property, he can simply quit claim deed the house to you. This will protect the house in case he passes through any financial challenges in the years to come.
If there is no lien, no judgements against the property, he can simply quit claim deed the house to you. This will protect the house in case he passes through any financial challenges in the years to come.