There are numerous situations where there is a need to transfer property from one person to the other. When that property transfer needs to happen between spouses, it may be beneficial to pursue an Interspousal Transfer Grant Deed. Sometimes known as a Quit Claim Deed, this type of tool may help to make transferring property straightforward in some situations.
At The Siegel Law Group, P.A., our Estate Planning Attorneys can help you decide on the best possible methods for transferring property at any stage of your life. If you have questions, contact us to learn how we can help you.
An Interspousal Transfer Grant Deed is a type of legal document used to provide sole ownership to one person when two people currently own the property. For example, if two spouses are on the deed to a property and file for divorce, this type of deed will transfer the property from two people to one person.
Generally speaking, this type of deed is meant to be a simple and easy way to transfer property to one person. It is often used in divorce cases as a method of transferring real estate from ownership by the couple to one party after a division of assets occurs.
In some situations, the property is owned by just one party, but due to the state’s community property laws, it must still be deeded to one person when the marriage is dissolved.
In these situations, the spouse who obtains the property will still need to refinance any mortgage from both names into their own name and take over the total ownership and responsibility of that property. There are times when the individual may wish to sell the property instead. If the property deed is put into their name, they are able to make that decision. The division of the value of the property is dependent on who owns it. For example, if the property is deeded to one spouse, the divorce is finalized and then that spouse decides to refinance it or sell it, they can do so.
There are various reasons to utilize this type of deed. There are some situations in which it is important to make it clear that the deed in the division of property is between two spouses. Specifically, this is often necessary to avoid transfer tax or reassessment of property by the state for taxing.
Transfer taxes, sometimes called documentary transfer taxes or city transfer taxes, are levied by local governments on property within their boundaries. These taxes are applied when property changes hands, and as a result, money is paid from the buyer to the seller. However, in most Interspousal Transfers, there is no exchange of money. As a result, there should not be any taxes levied. By utilizing an Interspousal Transfer Deed, it is possible to make it clear that this is the situation occurring.
Additionally, in many areas, when property is sold, this leads to an automatic reassessment of the value of that property. Again, since there is no actual sale of the property, this is not desirable since no one wants to pay extra taxes. By utilizing this type of deed, it is possible to minimize the risk of triggering this type of reassessment of the real property.
It is also important to note the difference between Interspousal Transfer Grant Deeds and Quit Claim Deeds, though the terms are often used to mean the same thing. A Quit Claim Deed (aka Quitclaim Deed) will transfer property with a more limited promise than that of a Grant Deed. It transfers just the interest that the grantor has in the property. In situations like this, if the grantee finds that there is some type of problem with the title after the transfer takes place, they have no legal grounds to seek action against the other party.
Quit Claim Deeds can be used to transfer property between spouses and sell inherited property. They are used when no money is being transferred between the two parties but rather just the ownership of the property itself.
The difference between a Quit Claim Deed and an Interspousal Transfer Grant Deed is liability. The spouse who selects to give up their interest in the property can be held liable for taxes, liens and other debts associated with the property in a Quit Claim Deed but not in an Interspousal Transfer Grant Deed.
If you are moving through a divorce right now, you may benefit from the use of an Interspousal Transfer Grant Deed, which is legal in Florida. This is a deed that transfers property from property owners who jointly own the real property to just one party, often one spouse in the divorce. There are rules that must be followed, depending on the situation, and understanding those rules is critical to protecting your rights when moving forward in these situations.
For the above reasons, there are benefits to utilizing this tool to transfer property, but it is critical to work with a Florida Estate Planning Attorney to ensure that your rights are protected moving forward. If you are unsure if this is the best method for taking ownership or providing ownership to any type of real property, it is worth having a conversation with our legal team to determine the benefits and opportunities it offers.
For more specific information regarding protecting your property with an Interspousal Transfer Grant Deed in a marriage, you should contact a South Florida Estate Planning Attorney at The Seigel Law Group for help. We work closely with our clients to ensure their needs are met no matter the situation.
Call our office at (561) 955-8515(561) 955-8515 to schedule a complimentary consultation , or submit our online contact form to schedule a consultation today. If you have any questions, do not hesitate to contact us.
