Getting Divorced and Really Confused

I am familiar with the whole Sub2 and land trust items. I live in Arizona (Community Property State).
Going through a divorce right now and wife knows she cannot afford the home on her own and is willing to give to me. There is little to no equity in the home at this point. Quit claim etc…

Here is the stickyness: due to reasons 5 years ago…she is on the mortgage and we are both on title.

We own several rental properties and due to the market, it will take awhile before we can sell them (ie…two years?) to get back at least the money we did for down payment/closing costs. I am having a hell of a time working with the current lenders as they would be okay with me getting the property with the current mortgage IF on the divorce decree and THEN I have to qualify for the mortgage. I can’t qualify today (although we have been paying for 5 years and never missed a payment).

So until I can qualify, I want the home NOW…so getting her off title is paramount. I will be making all the mortgage payments (like I am now anyway) and will be responsible for all repairs etc…I would like to get the mortgage interest deduction as well.

Do I do a Subject2? Subject2 with property being transferred to a land trust and the beneficiary of that trust is another trust (in Arizona you MUST disclose who the beneficiary is).

If two years from now the property goes up in value I don’t want her benefiting from that increase of course. It is to my understanding that I am to give some “consideration” for doing a Subject2 (ie…money).

Am I way off base here? I have researched this till I am blue in the face and now confusing myself more. In March we are meeting with private mediation but I need to get a proposal to my attorney next week on this.

Thank you in advance to whomever reads this…we are leaving on good terms. We just want to be fair to both of us as best as possible.

Don’t get all wrapped up in fancy packaging. You don’t need a trust or subj to agreement to effect title transfer. Quit claim deed will suffice.

If your spouse gives you a quit claim deed for her interest in the property, that will get her name off title (be sure to record the deed). Your attorney can draw one up for you as part of the settlement agreement and get it recorded along with the final divorce decree.

As long as you continue making the full mortgage payment, you get to take the entire income tax deduction for mortgage interest and property taxes.

Dave T is right. A quit claim will transfer whatever interest she has in the property. Where a quit claim is not good is where you don’t know who else might have an interest because you only get the person who quits claims interest.


Get it done fast before a boyfriend comes into the picture.Herbster

What you want is a quitclaim to get her off the title. The only way to get her off the mortgage is to refinance. You don’t care that she is on the mortgage. She cares because if you stop paying it trashes her credit.

You sir are in the driver’s seat.