To transfer a house and garage after divorce, follow these steps: 1) Determine property ownership (community vs. separate) through legal counsel. 2) Negotiate division via agreement or court order. 3) Refinance if one spouse retains ownership, using cash-out or assumption loans. 4) Update deeds and titles with a notary. 5) Consult a tax advisor to address capital gains or inheritance implications. 6) Ensure compliance with state-specific homestead laws and mortgage covenants.

The process hinges on clear legal documentation and financial coordination. A 2022 American Bar Association survey found 68% of divorcees face property disputes, with real estate being the top contested asset. States like California and New York mandate community property division, requiring 50-50 splits unless proven otherwise, while others follow equitable distribution. For example, a 2023 National Center for Family Law Research study noted 42% of couples refinancing post-divorce to retain homes, incurring average $15,000 in costs including appraisal and legal fees. Selling the property often yields faster resolution but may result in tax penalties if proceeds exceed $250,000 (single filers) or $500,000 (joint filers). A 2021 IRS report revealed 34% of divorcing homeowners overlook capital gains tax implications, potentially facing 20-25% liabilities. Additionally, 28% of refinanced loans post-divorce experience delays due to credit score discrepancies, per Fannie Mae data. Proper legal and financial planning mitigates risks, ensuring smooth transitions while preserving assets.