Divorce is a complicated process, especially when it involves property ownership and financial responsibilities. Questions about deeds, titles, and mortgages often arise, leaving couples uncertain of their rights and obligations.
- What do you do if your wife is on the title but not the mortgage during a divorce?
- What if your husband’s name is on the mortgage but not the deed?
Divorce scenarios like these are challenging and best navigated with an experienced family law attorney by your side. However, it always helps for you to have a firm understanding of these concepts if you’re entering a divorce.
Deeds vs. Titles vs. Mortgages: Understanding Your Documents
Whether you’re going through a divorce with the house in both names or just one, you’ll need to know the difference between a deed, a title, and a mortgage:
- Deeds: These documents establish ownership of the property. If your name is on the deed, you’re considered a legal owner.
- Titles: In the world of real estate, a title is not a legal document; it is merely a concept that represents your legal right to own and use the property.
- Mortgages: These are loan agreements tied to a property. If your name is on the mortgage, you’re financially responsible for the loan, regardless of who owns the property.
The differences between deeds, titles, and mortgages will be important during property division in a divorce. For example, if your name is on the mortgage but not the deed in a divorce, you’re financially tied to a property you don’t own. On the other hand, if your name is on the deed but not the mortgage in divorce, you own the property but aren’t personally liable for the loan. These are quick overviews of specific situations, but they can be more complex in practice.
Common Scenarios Involving Property During Divorce
Both Names on Deed and Mortgage
If both spouses’ names are on the deed and mortgage, property division in divorce can be complicated. In Texas, which uses community property laws, both spouses usually have equal ownership of property. This means that the divorcing spouses must find a way to divide the value of the home equally. Options for doing so can include:
- Selling the house and splitting the proceeds
- One spouse refinancing the mortgage to remove the other’s name, and if necessary, buying out the other spouse’s equity in the property
Name on Deed but Not on Mortgage
If your name is on the deed but not on the mortgage in a divorce, that means you have legal ownership of the property but you are not personally financially responsible for the loan. At first glance, this can seem like a good thing. However, should your ex-spouse default on the mortgage, it can significantly impact the property’s value or even lead to foreclosure.
Name on Mortgage but Not on Deed
Having your name on the mortgage but not the deed in a divorce is another complicated property division scenario. You’re responsible for the loan but will not have ownership rights to the home. To protect yourself, you may need to negotiate an agreement during the divorce process to ensure financial fairness.
House in Only One Name
In a divorce, a house in one name only can either simplify or complicate the property division process depending on the circumstances. In Texas, even if the property is titled in one spouse’s name, it may still be considered community property if it was purchased during the marriage. Factors to consider include:
- Ownership Status: If the house is considered community property, the other spouse may still have a claim to it.
- Financial Contributions: The court may evaluate whether both parties contributed to mortgage payments, maintenance, or other expenses.
- Future Options: If one spouse wants to keep the house, they may need to buy out the other’s interest to do so.
Post-Divorce Concerns: What to Do if Your Name Is Still on the Deed or Mortgage
Divorced with Your Name Still on the Deed
If you’re divorced but your name is still on the deed, you’ll want to take steps to address this quickly if you’re not living in the home. Leaving your name on the deed could expose you to potential legal and financial risks. The first step would be to have a deed prepared that comports with the divorce decree to ensure the county property records correctly reflect the post-divorce ownership of the property.
Divorced with Your Name Still on the Mortgage
It is critically important to address this issue during the divorce if at all possible because once the divorce is finalized, your options are more limited. However, if you’re divorced but your name is still on the mortgage, that means you still have the financial responsibility to pay back the loan. If you believe you should not be held financially responsible (for example, if you no longer own or live in the home), or you’re worried about your ex-spouse failing to make their payments, there are a few ways to resolve this:
- Refinancing the mortgage in one spouse’s name
- Reaching a legal agreement to ensure timely payments by the responsible party
Do I Need to Change My Name on the Deed After Marriage?
In Texas, updating your name on a deed isn’t legally required but can provide clarity. This step ensures that your legal name matches ownership records, which can simplify things during a property sale or legal dispute. However, it is important to talk to an experienced family lawyer prior to taking this step to ensure that your community and separate property interests are protected.
Steps to Protect Yourself Legally and Financially During Divorce
To safeguard your interests during a divorce:
- Work with an experienced Texas family law attorney who can help you navigate community property laws.
- Ensure proper documentation for any property transfer.
- Address joint liabilities and ownership to avoid post-divorce complications.
Contact Goranson Bain Ausley Today
Property division during a divorce can be one of the most contentious issues, but having an experienced lawyer can make the process go more smoothly. At Goranson Bain Ausley, our property division attorneys can help you resolve these challenges efficiently and fairly. Contact us today to schedule a consultation.
