While still married, can I sell my part of joint real estate to my wife and walk away clear of any financial responsibilities?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
While still married, can I sell my part of joint real estate to my wife and walk away clear of any financial responsibilities?
Asked on November 27, 2011 under Family Law, New Jersey
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
You can certainly sell your share of any joint real estate to your wife. However, just walking away from all legal obligations may not be so easy. For example, if you own a home together and it is mortgaged in both of your names, then unless your spouse refinances or obtains a novation (i.e. lenders permission to remove your name; rarely granted), you will still bear financial responsibility for the mortgage payments.
As long as your wife keeps the mortgage current you'll have no problem but if she falls behind your credit can be adversely affected; if the mortgage goes into default and a foreclosure action ensues, you can be held liable for any deficiency (i.e. what is still owed to your lender if the property sells for less than that).
Selling the property might be best. However, in this market that is easier said then done. At this point, you should consult directly with a divorce attorney in your area as to your potential rights and/or liabilities.
Lyle Johnson / Lyle W. Johnson Attorney at Law
Answered 13 years ago | Contributor
You can sell her the joint real estate, but if your name is on the loan you will still be responsible for the loan. The only way you can shed all responsibility is if she refinances the real estate. You should carefully set out the terms upon which she receives the real estate. One of the conditions should be a time limit for her to refinance the real estate. There may also be income tax consequneces as a result of the sale.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.