Divorce doesn’t magically resolve everything as soon as a judge enters a final decree. The divorced spouses still have to fulfill the terms included in the property division order.
In many cases, parties have to manage the process of separating their resources in accordance with the property division decree. If the divorcing spouses owned a home together, splitting home equity can be part of that process. Frequently, one person stays in the marital home, while the other leaves. The vacating party may receive a portion of the equity or other marital property to offset their share of home equity.
If someone owns part of a house but doesn’t live in it, is it risky for them to sign a deed that gives up their share after a divorce?
New deeds are usually necessary
Deeds are legal instruments that change ownership of real property. Typically the departing spouse signs a quitclaim deed or similar instrument to transfer their interest. In practice, the deed is usually recorded only after the staying spouse refinances the property or otherwise pays the departing spouse (often handled through escrow).
Lenders generally require the borrowing spouse to refinance or approve an assumption before they will remove the departing spouse from the loan. Note also that recording a deed transfers title but does not by itself remove you from mortgage liability; the lender must release you.
That said, if you are the spouse vacating the home, it can be risky to sign a deed before receiving the money from your ex. While the property division order gives you a legal right to payment, that right may be an unsecured money judgment unless the decree creates or preserves a lien or some other security. If you sign away title first, collecting your share can be more difficult.
Departing spouses can pursue common protections like having the staying spouse refinance and pay them through escrow before the deed is recorded. Parties can also record a lien or deed of trust securing the payout or get a court order that requires specific steps and timelines.
Because procedures and remedies vary, it can be wise to speak with a Washington family law attorney before signing any deed or finalizing how equity will be paid.