If I’m getting divorced and my name is on the loan for the home, will signing a Special Warranty Deed totally exclude me from responsibility for the loan?

This is in a community property state.

Asked on December 12, 2017 under Real Estate Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

No, it will not exclude you from responsibility for the loan. The loan is a contract between the lender and you (and also any other co-borrowers, like a spouse, on your "side" of the transaction). The lender has nothing to do with your marriage, and your marriage has nothing to do with them, so the fact of your divorce does not affect this contract or your obligations under it. And because it is a contract, you cannot affect the "other side's" rights--that is, take away the lender's right to hold you accountable for the loan, require you to pay it, and sue you if you don't pay--without the consent of *all* parties, including the lender. The lender would have to agree to allowing you out of your responsibilities for the loan. Finally, your obligation to pay the loan is independent of your ownership of the property: even if you lost or gave up or transferred, etc. the property, you would still owe the money under the terms of the loan.


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