Here's my question - what are the pros/cons of a quit claim or interspousal transfer. My husband and I are separating and the only item we are together on is the house. I am staying in house he is moving out of state. Friends have suggested he transfer the house to me (which he stated he will). What does this mean legally for me? His name is still going to be on the loan. Do I need to have a legal separation?

fitegrl

You are separating, but not divorcing? If he is willing to quit claim the property to you, I would accept the quit claim. The upside is you will own the property 100%; you may not want to record the deed because, the downside may be that your mortgage may include a 'due on sale' clause, at which time the balance of the loan must be paid off. You can record the deed later.

His name will still be on the financing and it will appear on his credit report that the money is owed. If you fail to make a payment, it will show on his credit as well as yours. If you loose track of him, the quit claim will be important if you want to sell the house. The title company will not have to find him to sign for the sale. I would go for the quit claim deed. Put it is a very safe place.

It means that you will own the house completely he will not have a legal claim to it, It does mean he will still owe the loan company for the property if you don't pay.

What you need if you are separating, is a divorce.