Interspousal Transfer Deed Time Limit

Any real estate document can be complicated, including documents associated to the deed, which conveys ownership, or a deed of trust, which conveys financial responsibility. When a marriage dissolves, considerations are focused on interspousal transfer deeds or quitclaim deeds based on statutes of limitations.

Interspousal transfer deeds and quitclaim deeds transfer all rights to a property to one spouse, but do not cancel out the financial obligation from both parties. The choice of which to use is dependent on whether a divorced couple lives in a community property state. Regardless, the only way to modify a mortgage is with a refinance and new deed to whichever spouse maintains the property.

While most states do not have a statute of limitations or time limit on when a party can file an interspousal transfer deed or quitclaim deed, California tax law requires a reassessment every four years. If neither deed is filed for four years after a dissolution of marriage, the deed cannot be changed. California is the only state that has such a limitation.

For any deed to be valid, it must be approved, notarized and signed by all parties, including the mortgage company. In some cases, the mortgage company will require a refinance of a mortgage when a couple is divorced. If the spouse remaining in the property cannot refinance on her own, then the couple will sell the property and split the proceeds.