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The Divorce Encyclopedia
Clear Title

Term Definition Clear Title - passing ownership of an asset without an encumbrances, obstructions or burdens that present any reasonable question of law or fact.
Application in Divorce Real property conveyed between divorcing spouses must have a clear title.

A clear title makes real estate marketable. For example, any piece of property that has a lien on it for outstanding balances due to the bank or I.R.S. does not have a clear title and is essentially frozen until certain financial obligations are cleared. Once these obligations are cleared, a lien is lifted and the real property becomes marketable with a clear title.

In a highly contested divorce, it may be in the best interests of one or both spouses to petition the court to freeze certain assets and bank accounts, to prevent the dissipation or hiding of assets. An action taken like this by the court would cause a piece of real property to not have a clear title.

See Marketable Title.

See also Quit Claim; Warranty Deed.

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