The Difference Between Inter-spousal Transfers and Quit Claim Deeds
A deed is a legal document that transfers property from the current owner to a new owner. This arrangement is relevant to just about anyone, including two spouses. A husband could, for example, transfer property to his wife through a deed, making it the wife’s separate property.
There are a variety of ways to accomplish this transfer, but the two most popular are inter-spousal transfer deeds and quit claim deeds.
Inter-spousal transfer deeds
An inter-spousal transfer deed moves ownership of property between a married couple. Typically, a gift given by one spouse to the other during a marriage is classified as separate property rather than marital property. An inter-spousal transfer deed allows marital property to become separate property (or vice versa). This can be an important distinction if the couple later gets divorced.
These deeds are especially beneficial if one spouse has bad credit and the couple wishes to take out a big loan or refinance a mortgage. By using an inter-spousal transfer deed to transfer the title of the home to the spouse with the better credit rating, the couple has a better chance of a loan approval and optimal interest rate.
Quit claim deeds
A quit claim deed transfers interest one spouse has in a piece of property to the other spouse. Unlike an inter-spousal transfer deed, it does not include any promises regarding property ownership.
A common scenario in which a couple would use a quit claim deed is if the spouses get divorced and one party wishes to transfer his or her interest in the marital home to the other.
For more information on these two types of deeds and if either one might be right for your circumstances, work with a knowledgeable Long Island divorce lawyer at Bryan L. Salamone & Associates.