Question:
My fiancee is on a deed to a previous house, with her ex, from a prior marriage. Should she quit-claim before we get married? My fiancee amicably split with her ex a few years ago. She moved out while her ex stayed in the house. Ex covered mortgage payments, while fiancee remained on the mortgage and the deed.
We are getting married later this year. I was concerned about the possibility of her ex going into bankruptcy, wrecking my fiancee’s credit and then in turn affecting mine if we’re married. Fiancee encouraged her ex to refinance and now her ex is the only name on the new mortgage. There wasn’t much equity in the house when they split and ex has given various payments of other sorts to fiancee since then, so fiancee doesn’t require an equity payoff.
Fiancee is still on the deed though, and ex intends to will house to her. Is fiancee still exposed to liability? Am I? Should anything else be done?
Answer:
The “fiancee’s ex” would be the only party exposed to liability on the mortgage if he refinanced as you stated and he is the only named borrower. However your fiancee could be exposed to liability if she is listed as a fee simple owner of the property for a potential tort claim. For example, if someone were injured at the property and the injured party’s damages exceeded available insurance. I think it is wise for your fiancee to quit claim her interest in the property to her “ex” in this case.
Disclaimer
This answer is merely for general informational purposes only and does not constitute an attorney/client relationship. You are strongly advised to consult with an attorney licensed in your home jurisdiction to get detailed advice on your legal matter based on the laws of your home jurisdiction and case facts.
(Creative Commons: Seth Lemmons)
