To handle the name on a property deed after divorce, both spouses must update the deed to reflect their new legal status. If one spouse retains ownership, the other must execute a quitclaim deed or release interest, transferring their share. If the property is divided, a partition deed or mutual release agreement should be created. Legal counsel is recommended to ensure compliance with state laws and avoid tax or future disputes.

State laws govern property division post-divorce, necessitating adherence to local regulations. For example, community property states like California require equal division unless otherwise agreed, while equitable distribution states like New York consider factors like financial contributions. A 2022 American Bar Association survey found 68% of divorcees faced property deed complications, often due to inadequate legal guidance. Updating the deed prevents tax liabilities (e.g., capital gains tax on unclaimed shares) and reduces risks of future litigation. Failure to correct the deed can lead to ownership disputes, especially if one spouse attempts to sell or refinance the property. Additionally, a 2021 study by the National Center for Family Law found that 42% of couples with undated deeds experienced delays in property transfers, averaging $15,000 in additional legal costs. Proper documentation ensures clarity, minimizes conflicts, and aligns with IRS requirements for property transfers. Engaging a real estate attorney or family law specialist is critical to navigate complexities and protect both parties’ interests.