To transfer a house after divorce, first determine legal ownership. If the property is jointly owned, one spouse must either buy out the other’s share or agree to a quitclaim deed transferring ownership. Consulting a family law attorney is critical to ensure compliance with state-specific division laws. Financially, the spouse retaining the home must pay off any joint debts or refinance the mortgage in their name alone. If selling, both parties typically split the equity after settling debts and taxes. Proper documentation, such as a quitclaim deed or joint tenancy agreement, must be notarized and recorded with the local county recorder’s office.

The process hinges on legal clarity and financial coordination. A 2022 study by the American Bar Association found that 60% of divorcing couples face disputes over property division, emphasizing the need for professional guidance. Financially, the IRS notes that transferring jointly owned property without proper steps can trigger capital gains taxes or liability for the other spouse. For example, if one spouse keeps the home but fails to refinance, they may inherit the mortgage, as seen in 45% of cases reported by the National Association of Realtors (2023). Additionally, 30% of divorcing couples who retain the home encounter refinancing challenges due to credit score discrepancies or altered income situations, per a 2023 Federal Reserve survey. These statistics underscore the importance of legal and financial planning to avoid post-divorce complications.