Divorce Real Estate and Mortgage Journal September 2024

Welcome to interactive presentation, created with Publuu. Enjoy the reading!

PROTECTING SPOUSAL RIGHTS AND LENDER INTERESTS

State-Specific Variations

While the principles of marital property laws and homestead rights apply broadly, the specifics can vary

significantly from state to state. Some states have more stringent requirements for spousal signatures,

while others may have different protections for non-titled spouses.

Dower and Curtesy Rights: In certain states, particularly in the South and Midwest, dower and

curtesy rights may also come into play. These traditional rights give a surviving spouse a legal claim to

a portion of the deceased spouse’s property, including the marital home. Even though these concepts

are largely obsolete and have been replaced by modern homestead rights, some states still recognize

them, necessitating the non-titled spouse’s signature on mortgage and title documents to waive these

rights.

Statutory Requirements: Some states have statutes requiring spousal signatures on mortgage

documents, even if the spouse is not on the title. For example, a non-titled spouse must sign the

mortgage documents in Florida if the property is the couple’s primary residence. This requirement

ensures that the homestead exemption is preserved and that the non-titled spouse’s rights are

acknowledged. This requirement of the Florida constitution is called 'joinder of spouse' and means

that the non-owner spouse must sign the deed or mortgage for it to be valid. Joinder of Spouse is

required even if the other spouse isn't a co-owner of the property and/or no longer residing there.

*Note that some lenders may require non-borrowing spouses to sign ancillary documents, such as the new

Closing Disclosure. These aren't title-related, and how they are handled can depend on the lender's

interpretation of state marital laws and CFPB privacy rules. Refer to the State-Specific Marital Signature

Requirements for a state-by-state breakdown.

Protecting Spousal Rights and Lender Interests

The requirement for a non-titled spouse to sign title and mortgage documents, even if they are not listed

on the title or mortgage, is ultimately about protecting both spousal rights and lender interests. Marital

property laws and homestead rights ensure that both spouses have a say in what happens to the family

home, which is often the most significant asset in a marriage. These protections do not automatically

disappear during separation or divorce proceedings, which can complicate real estate transactions, but

also provide necessary safeguards.

Understanding these requirements is crucial for homeowners and professionals involved in purchasing or

refinancing a primary residence during a divorce. Awareness of state-specific laws and the implications of

marital status can prevent delays and disputes during the transaction process. By recognizing why these

requirements exist and working with a CDLP®, both spouses can navigate the complexities of real estate

transactions with greater clarity and confidence, ensuring their rights and interests are fully protected.

08 DIVORCE REAL ESTATE & MORTGAGE JOURNAL

Made with Publuu - flipbook maker