Question re: divorce in New York State

General Real Estate Investing
1

I have a question regarding splitting up of marital assets in New York State.

My wife and I, (who are going thru a divorce), are at a point where we need to make a settlement as opposed to going to trial.

Her lawyer said that he would be willing to have me sign over the deed so that the house would only be in her name.

Here’s my question:

If I do sign over the deed as he suggests…am I no longer obligated to the mortgage company?

As an example…if a year from now she defaults on the loan…would they be able to come back to me to collect and/or ruin my credit?

Thanks.

2

If you are both on the deed and on the mortgage, signing the deed over to one party or the other will only sever the property as far as the deed goes. If the mortgage is in both names, you will have to do something separately with that…most usually by refinancing. Sometimes (rarely), the lender will allow one borrower to assume the whole thing but they like the security of having both parties “on the hook”…you’ll have to ask your lender.

Keith