If you either had real estate transferred to you or you transferred real estate to your ex-spouse in a divorce, there are typical steps you should take to record ownership before filing bankruptcy. When you file bankruptcy you have to disclose all of your assets and any transfers done in the last two years, including transfers made within the divorce. If you do not have your ownership interest in real estate properly recorded, it could cause issues within your bankruptcy case. This blog will go through options you can take to properly record your ownership interest.
Option one is doing a Quit Claim Deed with your ex-spouse, listing your new ownership interest in the real estate. A Quit Claim Deed would be filed with the county recorder’s office and on record for anyone to see if they pull your real estate ownership.
Another option is a Summary of Real Estate Disposition. This is a form filed by a family law judge in your divorce proceedings and recorded at the county recorder’s office. A Summary of Real Estate Disposition will say who is awarded the real estate, under what terms (if there are any), and that the transfer was part of the divorce.
Finally, you could also have a certified copy of your divorce decree filed with the county recorder’s office in the county where the real estate is located. The divorce decree says who is awarded the property and having this filed will work to provide record of your ownership.
You should always speak with your divorce attorney and a licensed bankruptcy attorney about the above options and how your real estate ownership after divorce may impact your bankruptcy.
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