Real Estate

It has been my experience that more time is spent discussing real estate than any other asset. That is partly because real estate is likely to have the greatest amount of value as an asset. And, perhaps more importantly, it is the place where you and your children reside and where you may feel the most comfortable.

When dealing with real estate there are some basics that you should know. First, title to a parcel of real estate is determined by a deed that is recorded in the county clerk’s office where the property is located. If it was purchased during your marriage, it is considered a marital asset even if the deed were only put in one spouse’s name.

Second, a mortgage is a lien against property. While most people think they are getting a mortgage, they are really giving the bank a lien on that property in exchange for the bank loaning them money that is then used to purchase the property.

If you own a house together that has a mortgage on it, that mortgage is probably in both of your names. If one of you wishes to transfer their ownership of the house to the other spouse, you should first be released from the obligation to pay the mortgage before you transfer title to your spouse.

To be released from this obligation, the spouse that is taking over the title to the house must either refinance the mortgage or get the bank to agree to remove the other spouse from the obligation, which is called a loan modification or assumption.