In Texas, a divorce often involves disputes over community property, which refers to property acquired by either spouse during the marriage, excluding separate property. The final decree of divorce outlines who gets what property, but it is not enough to transfer a title to real estate. A divorce deed, or deed incident to divorce, can help you streamline the process of transferring the ownership of property at the time of your divorce.

According to Texas Family Code Section 3.308, a final decree is not considered constructive notice to a good faith purchaser or creditor unless the order is recorded in the deed records of the county where the property is located. The order also must contain very specific granting language, which most judges will not normally include.

WHAT IS A DIVORCE DEED?

It is crucial for parties to a divorce to get a divorce deed (also known as a deed incident to divorce) in order to transfer ownership of real property. A divorce deed transfers ownership of real property from one spouse to another a part of a divorce settlement and is usually executed after the divorce has been finalized. The deed includes the names of the former spouses, the legal description of the property being transferred, and a statement that the transfer is part of a divorce settlement.

DIVORCE DEEDS VS. TRADITIONAL DEEDS

The biggest difference between a traditional deed and a divorce deed is that the latter references the division of property as outlines in the divorce court proceedings. The divorce deed must be filed in every county where the marital property is located. If there is an outstanding mortgage on the property, both spouses should ensure that a deed of trust to secure assumption is filed as well. If one spouse owed the other funds for the community property real estate, an owelty deed and lien might also be useful.

BENEFITS OF DIVORCE DEEDS

In order to avoid problems in the future, it is recommended to transfer the house at the time of the divorce settlement. It’s not uncommon for parties to end up needing to return to their former spouse years after the divorce and ask them to sign a deed in order to get a clear title. With a divorce deed, the transfer of ownership is clear and reduces the risk of future disputes.

It’s also important to note that signing over a divorce deed may be an exception to the due on sale clause and does not trigger an acceleration on your mortgage. This means that the transfer of property can occur without disruption the mortgage on the property.

RELY ON OUR REAL ESTATE ATTORNEYS

A divorce is a complex process that can have a significant impact on your financial future, so it is essential to have an experienced attorney to help guide you through it. At The Farah Law Firm, we understand the complexities of divorce and the importance of getting a fair and equitable division of property. Our attorneys are fluent in Texas family law and can help you determine the best solution for your situation.

When it comes to dividing community real estate property, a divorce deed is the best way to transfer ownership and avoid future disputes. Don’t rely on the final decree of divorce to transfer a title to real property. Our attorneys can draft an execute your divorce deed and help ensure that your rights are protected.