Why an Interspousal Transfer Deed is Needed for One Spouse to Sell Property?
Full Question:
Answer:
California is a community property state. In a divorce, the courts in California will divide the community property of the parties equally after setting aside to each spouse that spouse's separate property. Community property is presumed to be all property acquired by the parties during the marriage and held in joint form. This presumption may be rebutted by a clear statement in the title by which property is acquired that the property is separate and not community property or by proof that the parties have a written agreement that the property is separate property.
An interspousal transfer grant deed is used to transfer real property between spouses so the property is not reassessed for tax purposes, and may be used to convert community property into separate property. It is sometimes used when one spouse suffers credit problems that adversely impact the other spouse when trying to obtain financing.
I am unable to determine by whom or why the request for an interspousal transfer deed was initiated without knowing all the facts and documents involved. When a couple is married in a community property state and sign such a deed, the property is converted to separate property. However, if the property was purchased by a spouse before the marriage and the other spouse hasn't contributed to the property, it is generally considered the separate property of the spouse without having to sign an interspousal transfer deed. It is possible for a title company to request an interspousal transfer deed when another spouse wishes to sell property that is in that spouse's name only so that they are assured the spouse not named on the deed doesn't object to the sale or try to claim an ownership interest that would prevent the owner spouse from passing clear title.
I suggest talking with your spouse, the title comany, or another title company or local attorney who can review all the facts and documents involved.
