Quit Claim Deed questions

Posted by: marissa07

Quit Claim Deed questions - 01/09/12 09:50 PM

Hi guys, I'm new to the forum and hope to hear from someone knowledgeable and/or has similar experience in the past.

My husband and I are getting a divorce and we stay on very amicable terms.
Currently we both own our house (both our names on a title) and we both are responsible for mortgage (both our names on a mortgage). We decided that he would be keeping our home. I would like to hand over my interest in the home and also would like to release myself of mortgage liability.

He will be refinancing into his name only which will release me of mortgage liability thereafter.

In order for me to hand over my interest in our home, I will be signing a quit claim deed. I do not wish to receive my half of interest in our home , i.e. do not want any cash payment from my husband.

(1) Where do you find a right quit claim deed form? Is this form county-specific?

(2) I hear that a deed transfer resulting from a divorce can exempt you from any income/transfer tax. How can we indicate this (trasnfer resulting from a divorce) on a quit claim deed so that we will receive a proper tax exemption? FYI, we would like to take care of this prior to filing for a divorce (dividing all our joint assets beforehand)

(3) As I mentioned above, we both own our home together. On a quit claim deed, do we indicate both of us as grantors or just me as a grantor?

(4) I hear that in Georgia, notary is not enough and you need witness(es) to sign the form. Can we have just anybody around in a notary clerk's office to be our witness?

Any help/advice would be greatly appreciated.
Thanks so much in advance. [color:black] [/color]
Posted by: Renny

Re: Quit Claim Deed questions - 01/09/12 10:17 PM

(1) It's County specific as far as the caption, like Fulton County, but the content is generic to the state and available on line.

(2) The tax part won't go on the QCD. Only in the CO. Do not execute the QCD until you get the final divorce decree AND you are off the mortgage.

(3) You as a grantor, him as grantee.

(4) I hear the notary is enough of a wirtness to the grantor's signature. Report the Civil Action No. in the QCD.
Posted by: marissa07

Re: Quit Claim Deed questions - 01/09/12 11:01 PM

Thanks Renny for your answers!

I have some follow-up questions for you (or anyone else that has an answer) and thanks again in advance.

(1) You said not to execute the QCD until a divorce is final and I'm off the mortgage. I understand that I should wait until I'm off the mortgage to sign the QCD, but as for waiting until a divorce is final, can you tell me what the reason may be?

Our plan at the moment was that he would get a refinance in his name only, and then I sign the QCD and then file for our divorce (unless our mortgage company requires my QCD as part of him refinancing. I heard some companies require both refinancing and QCD to be performed at the same time).

We want to divide our joint assets (house, cars, credit cards, bank accounts etc) before filing for a divorce, because we thought it'd make our divorce process a lot easier. When I look at instructions how to fill divorce forms, there is "Paragraph 14: Marital Property" and there are 3 choices, (a) do not own any marital property, (b) own marital property but already have divided them to mutual satisfaction, and (c) have marital property and they need to be divided by the court.

Since we do have marital property, we wanted to divide them up prior to filing for a divorce so that we can check (b) and be done with it. But, if I wait until a divorce is final to sign QCD, which means I still own our house at the time of filing, and that means we should check (c) and court will intervene as to how to divide up our property including our house, isn't this right? I'm afraid that it will make things a lot complicated and time consuming when we are perfectly capable of doing so on amicable terms.

(2) You said the tax part won't go on the QCD, but only in the CO. Could you tell me what CO is short for?

(3) You said report the Civil Action No. in the QCD. What is the Civil Action No. and how do I acquire one?

Thanks again so much.

But our concern is, if we wait for me to sign the QCD until our divorce is final, that means we should indicate on our form that our
Posted by: Renny

Re: Quit Claim Deed questions - 01/10/12 01:28 AM

I like the protection afforded by GA domestic law over transactions incident to divorce.

Backing up a minute, it makes no sene to divide property before a divorce because the form you have doesn't seem to cover your situation. For a decent, free divorce packet, look at the Fulton County Superior Court Family Law Division, or Cobb County Law Library forms. You will want all the transactions -- bank accounts, credit cards, vehicles, taxes, real property -- in the settlement agreement. In an uncontested divorce the property is divided by agreement of the parties. The court only looks to make sure the formalities of the divorce are complied with -- the right documents signed and notarized, the 31 day waiting period, the agreeement to "try" within 30 days, acknowledment of service, etc. The court will accept the agreement you reached, including the distribution of property, payment of debts, what you plan to do with house, etc. without entering into the merits. So why not put it in the settlement agreement? That way, if there are any didsputes you go to the family law judge in 30 days or less instead of waiting 3 years for a civil action forbreach of contract to be heard.

CO = Court Order. In a divorce, the settlement agrreement is incorporated into the final judgment and decree of divorce and becomes itself a CO.

The Civil Action number is assigned to your case when you file it in the clerk's office.
Posted by: marissa07

Re: Quit Claim Deed questions - 01/10/12 04:44 PM

Thanks again so much, Renny! I really appreciate your help.

You're right - there is a settlement agreement form where we can state how we wish to divide our joint assets.

You said the form I have doesn't seem to cover my situation. We live in Gwinnett county, and I obtained all the necessary forms here: legalaid-ga.org/documents/clusters/GA/163/English/ComplaintWOChildren.shtml

As you can see on that page, those are all the necessary forms for those with uncontested divorce without minor children, and when you click "Complaint for Divorce", there is a Paragraph 9: Marital Property and I should choose one from (a), (b) and (c).

I assume I will have to choose (a) since we will be filling out a settlement agreement indicating exactly how we wish to divide our joint assets, am I right?

Also, for Paragraph 10: Joint or Marital Debts - I assume they don't talk about revolving accounts debts such as credit cards, but rather mortgage, auto loans, student loans etc, am I right? We only have mortgage in that arena and since he will refinance in his name, I guess I can state that in there?

Thank you again so much.... I'm trying to take care of this on my own without hiring a lawyer and you have no idea how much your help/advice means. Thank you.
Posted by: Renny

Re: Quit Claim Deed questions - 01/10/12 07:26 PM

I found the form. I would check #6 and add a whole settlement agreement, which you will sign and notarize.

Note this is just the complaint. You are asking for some things only. What you need are The Dom Rel. Case Filing Info; Complaint; Verification; Acknowledgment of service and waivers; The settlement agreement (fill out the whole form); and click on the Orders and Agreement for Divorce without children and fill out the Final Judgment and Decree of Divorce incorporating the SA, and present it to the Judge's in-court clerk for the judge's signature at the final hearing. Hope this helps.
Check #6.

For #9, heck (a), because you've divided the property in the settlement agreement.

Then check #12 if you want your maiden name restored to you. #13 (a).

Then for the final clauses check (c), (d), (i), and (l).
Posted by: marissa07

Re: Quit Claim Deed questions - 01/10/12 08:00 PM

Renny, thank you again!

Yes, we will definitely do a settlement agreement and make sure to fill out all the necessary forms including ones for the final hearing.

Could you answer my question regarding #10: Joint or Marital Debts?
We have joint mortgage and he will refinance in his own name.
We also have credit cards with him as a primary account holder and me just as an authorized user. Would they count as "joint" debts and do we have to list them under joint debts, too? If yes, for the balance, do we just put average monthly balance on it?

For #13, I thought we would have to also check (f) & (g), but I see that you left those out in your reply. Could you explain why?

Thanks again so much!
Posted by: Renny

Re: Quit Claim Deed questions - 01/10/12 08:24 PM

For #10, best to list all debts and who will be respoonsible for them. If he has an Amex card and you used it and the balance owing is $5k, be sure to put down in the agreement that H agrees to be responsible for that $5k debt. (The whole outstanding amount, or some part of it and you take the rest.). These are joint debts if incurred during the marriage. The joint cards should go to one or the other party. There should be no joint accounts left.

As to f & g, they are already in the settlement agreement and agreed to. You are not asking the judge to divide property and debt. (That would make it a contested divorce.) You are asking the judge to accept your agreement and make it an order of the court.
Posted by: marissa07

Re: Quit Claim Deed questions - 01/10/12 08:41 PM

Thank you Renny!

Just so that I understand you correctly, we have to list all debts both in #10 on "Complaint for Divorce" and on a settlement agreement, am I right?

Does a mortgage go under "Joint or Marital Debts", too?
On a settlement agreement, there is a section under "Marital Home" where we can indicate that my husband will refinance a mortgage on his own, so I assume we don't have to list a mortgage under "Debts" on a settlement agreement.

What about on a "Complaint for Divorce" though? Do we also not list a mortgage under #10: Joint or Marital Debts?

Thank you!!!!
Posted by: Renny

Re: Quit Claim Deed questions - 01/10/12 08:57 PM

No need to list the debts again in the complaint. You might write in "The parties have divided marital property and debts as set out in the sellement agreement to be incorporated in the Final Decree.". The mortgage is a joint debt too, which you will dispose of in the SA. This particular complaint form is meant to get information to be used in the settlement agreement by the overworked legal aid folks. The complaint need only state that you are seeking equitable distribution of all property and debts without being specific.
Posted by: marissa07

Re: Quit Claim Deed questions - 01/10/12 10:06 PM

Renny, what you said makes a lot of sense. Thank you!

Currently all utilities (electricity, gas, water, cell phone etc) are under my name only and I understand I will need to either transfer those accounts to my husband, or ask utility companies to close our current accounts and open new ones under his name only. Do I list any of this on either SA or Complaint?

I was looking at Instructions (legalaid-ga.org/documents/clusters/GA/163/English/Instructions%20for%20Complaint%20without%20Children.pdf) and I noticed that in addition to forms you listed in one of your replies above, it says I need to fill out...

(1) Summons (gwinnettcourts.com/documents/Filing//d0000233.pdf)
-- I don't think I need it since he will sign Acknowledgment of Service, Consent to Jurisdiction and Venue and Consent to Present Case. (BTW, when you said "Acknowledgment of service and waivers", you meant "Acknowledgment of Service, Consent to Jurisdiction and Venue and Consent to Present Case", right?)

(2) Domestic Relations Financial Affidavit (legalaid-ga.org/documents/clusters/GA/163/English/Financial%20Affidavit.pdf)

-- It's a very long document with a lot of details needed to be filled out and some of terms are confusing. Is this form necessary?

Thank you Renny!!
Posted by: Renny

Re: Quit Claim Deed questions - 01/10/12 11:06 PM

Hi --

Here's a clause you can use:Wife shall cooperate with Husband in facilitating the transfer of all service accounts related to maintenance of the Marital Residence (i.e., power/electric, garbage, cable, water, telephone, natural gas, security system, etc.) in order to enable the Husband to establish those services in his own name. Husband shall indemnify and hold Wife harmless from all Residence-related expenses.

(1) Right.

(2) No need for the FA. You could add this clause in the property section: "Both parties warrant and agree that each is unaware of any other marital property or marital interest in property that remains to be divided between them except as provided in this Agreement. Both parties further warrant and agree that each has fully disclosed any and all assets to the other and that all marital assets have been considered in formulating the provisions set out in this section of this Agreement."
Posted by: marissa07

Re: Quit Claim Deed questions - 01/10/12 11:28 PM

Wow, thanks so much! Again, I can't thank you enough for all this help.

I may be out of line to ask you this, but are you working in a legal industry, Renny? Just a wild guess. ;-) You seem very knowledgeable in legal terms etc.

Under "Marital Home" on SA, should I also mention that I will be signing QCD to hand over my interest in the house?

As for QCD I asked about in my original post, can I use ANY QCD form I find online? I was searching for free ones a while, but ran across a comment from some people that have experienced with both free and paid ones, and recommended to pay a little to purchase paid ones. What do you think?

I found a following link which provides Gwinnett county QCD (quitclaimdeed.com/forms/county-forms.html?state=Georgia&county=Gwinnett&stateid=688599&countyid=949964). Any thought?

Thank you again!!!
Posted by: Renny

Re: Quit Claim Deed questions - 01/11/12 12:38 AM

Yes, under marital home on the SA you should describe what you will do with the house. Something like: " Husband shall refinance the mortgage in his name alone not later than _________. Upon said refinancing, Wife shall execute a Quit-Claim Deed transferring all her right, title and interest to the Residence to the Husband. In consideration thereof, Husband shall remove wife from the chain of title and shall relieve Wife from all debts and obligations related to the Marital Residence, and shall hold Wife harmless from any debts, mortgages, claims, expenses and obligations of any kind related to the Marital Residence. The parties shall not encumber the Residence with any additional debt so long as Wife's name is on the deed to the Residence." As you can see, you nevever say enough and the forms are limited.

I can't see the QCD form on line without jumping through hoops. It should be OK. BTW, I found this thread here with your questions and my answers online googling QCD. Add this line if it isn't in the QCD:

PURPOSE: The purpose of this Quit-Claim Deed is pursuant to a divorce in the Superior Court of Gwinnett County styled ______________ v. ______________, Superior Court of Gwinnett - Civil Action File No. ____________.
Posted by: marissa07

Re: Quit Claim Deed questions - 01/11/12 01:21 AM

Renny, all these clauses you've provided me with sound great! Thanks so much! There doesn't seem to be enough space on the SA - should I write these in a separate paper and attach to the SA?

I mentioned this in my original post, but I'm on very good terms with my husband and I would like for him to avoid any tax implications resulting from handing over my interest to him. I hear that a transfer deed resulting from a divorce would exempt you from any tax implications. Is that true? Should my husband not worry about it next year when filing for 2012 tax returns?

Thank you!!
Posted by: Renny

Re: Quit Claim Deed questions - 01/11/12 02:05 AM

You can add pages to the form. If you do, I would append whole sections, like the marital residence as Annex 1,2 3etc.

The transfers in a divorce are tax free.
Posted by: marissa07

Re: Quit Claim Deed questions - 01/11/12 02:48 AM

Thank you Renny!

(1) Please excuse me for sounding dumb, but could you elaborate how I should append whole sections?
Do I go like this:

"Marital Home - Please see Annexes on an attached page"

and on an attached paper: "Annex 1: (explain about refinancing and Quit claim deed)"
"Annex 2: (explain about transfer of utilities etc)"

(2) As for when to sign QCD, usually how do refinancing and QCD occur? At the same time, or refinancing first and then QCD?
I understand there is a huge difference between a signed QCD and a filed QCD, and does a mortgage lender usually require a signed QCD and hold onto it until refinancing is over?
If a lender requests that QCD be signed and filed BEFORE even starting a refinancing process, should I be skeptical and request for both to be done at the same time (perhaps just sign QCD, but do not file until refinancing is complete)?

(3) My name on a title (Jane Smith) and my current name (Jane Walter) are different. To avoid any issue/confusion, should I put my name on QCD like this: Jane Walter formerly known as Jane Smith

(4) As you advised, I will be sure to put in my QCD that the purpose of it is pursuant to a divorce. When filing a QCD at a court, should I submit a copy of a divorce decree along with it just to be safe?

Thank you as always!!!
Posted by: Renny

Re: Quit Claim Deed questions - 01/11/12 03:07 PM

In (1) Marital Home, after the decription box, ... shall be conveyed to Husband by Quit Claim Deed as described in Annex 1, attached hereto and incorporated herein by reference.

First refinance, then sign the QCD and record the same day you get the decree. Mortgage lender should not care.

Use the name you originally used in the title.

QCD should be filed w/o the SA.
Posted by: marissa07

Re: Quit Claim Deed questions - 01/11/12 04:47 PM

Thank you Renny again so much! I really appreciate all your help!