Full question:
I divorced ex wife back in 1994. Since she did not attend divorce court date, house property was awarded to me. The house deed record is still under both our names. I never went to County deed records office to change property under my name only. Presently, I remarried, and does not live at my old property home. I am living at my new wife home. I asked my ex-wife to live at my property house (one we used to share ownership) it which is paid off. She accepted and moved in with our two older sons 28 and 24 yrs old. My question is: what do I need to do to have that property under her name and if / or my sons name. I don't live there and don't want that house anymore. Do I need to notify IRS of such change of ownership, is IRS will go after for tax purposes, is this change of ownership will be expensive? Please need your advise and expertise on this matter. Thanks you.
- Category: Real Property
- Subcategory: Deeds
- Date:
- State: Texas
Answer:
You may create a quitclaim or grant deed from youself and the former wife to only the former wife. The deed must describe the real property, name the party transferring the property (grantor), the party receiving the property (grantee) and be signed and notarized by the grantor. In addition to the signature of the grantor(s), deeds must be acknowledged to be recorded and acceptable as evidence of ownership without other proof. A valid deed must be delivered and accepted to be an effective conveyance. Most states assume delivery if the grantee is in possession of the deed. The deed also must be accepted by the grantee. This acceptance does not need to be shown in any formal way, but rather may be by any act, conduct or words showing an intention to accept such as recording the deed. To complete the transfer (conveyance) the deed must be recorded in the office of the county recorder or recorder of deeds in the county in which the real estate is located.
There are two basic types of deeds: a warranty deed, which guarantees that the grantor owns title, and the quitclaim deed, which transfers only that interest in the real property which the grantor actually has. The only type of deed that creates "liability by reason of covenants of warranty" as to matters of record is a general warranty deed. A quit claim deed contains no warranties and the seller doesn't have liability to the buyer for other recorded claims on the property. The purchaser takes the property subject to existing taxes, assessments, liens, encumbrances, covenants, conditions, restrictions, rights of way and easements of record. However, a person who obtains a mortgage is still liable for mortgage payments after executing a quit claim deed on the property securing the mortgage. The quitclaim is often used among family members or from one joint owner to the other when there is little question about existing ownership, or just to clear the title.
Generally, a transfer under a divorce settlement isn't considered a sale for federal tax purposes. If you transfer your home to your spouse or to your former spouse incident to your divorce, you in most cases have no gain or loss. These transfer rules do not apply if your spouse or former spouse is a nonresident alien. In that case, you generally will have a gain or loss. This is true even if you receive cash or other consideration for the home. Please see:
http://www.irs.gov/taxtopics/tc701.html
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
