Legal Question in Family Law in California
I live in California and own a home jointly with my husband. We are getting ready to file for divorce and through some research I found that the marital home for which I intend to stay has two liens associated with my soon to be ex. One is for child support arrearage from a prior relationship and the other for overpayment from EDD. My question is whether a quit claim deed to just me will eliminate the lien? If I try to refi the home in my own name will this be a problem? Will I have to pay the debt? Any information you can provide is appreciated as this is really going to determine whether I stay in the home.
2 Answers from Attorneys
How liens and other interests attach is based on straight chronological priority. Therefore a deed from him and you to you, or a quitclaim from him to you, recorded after the liens, will have no effect on the liens. You will simply own the property subject to the liens, and yes it will be a problem for a re-fi. Who has to pay the debt, when, how and under what circumstances, however, is much more complex. If you get the house subject to his liens, he may be ordered to make a payment to you as part of the divorce, or you may be awarded other cash or other assets to off-set the liens. Or he may be ordered to pay them directly. There are a lot of ways it can go depending on the full financial picture of the marriage and lots of details. You should consult an attorney in person about this. Many family law practitioners are willing to provide limited scope representation - meaning they do not take over your whole divorce, just the parts you want help with.
1. A quit claim will not eliminate the lien. The deed will pass title to you and the lien will follow.
2. It may affect refinance, especially where a new deed of trust is executed for a new loan, which would be inferior to the recorded liens.
3. I agree with Mr. McCormick that you should talk to an attorney. You may be entitled to a payment as an offset if you paid the liens.