Build a transition fact file
Organize divorce home records
A divorce decree or property settlement may assign a debt between former spouses, but it does not change the fact that a creditor may collect from anyone whose name remains on the loan.
Source: research/divorce-and-mortgage.md · Primary sourceRemoving a person’s name from a home title does not, by itself, remove that person’s name or responsibility from the mortgage.
Source: research/divorce-and-mortgage.md · Primary sourceNew Jersey’s official divorce instructions state that a Family Part Case Information Statement must be filed by both parties when custody, support, alimony, or equitable distribution is in dispute.
Source: research/new-jersey-equity-transition.md · Primary sourceReviewed on
Start with the title record and mortgage documents
The CFPB identifies contractual release by the creditor or a refinance that removes the person’s name as examples of ways responsibility for a jointly owed loan may change, while noting that state law varies.
Source: research/divorce-and-mortgage.md · Primary sourceA transfer of ownership and a release of liability are separate concepts in Fannie Mae’s servicing procedures: Fannie Mae states that an exempt transferee generally need not assume the mortgage unless a release of liability is requested or a mortgage-loan modification is involved.
Source: research/divorce-and-mortgage.md · Primary sourceCFPB Regulation X includes a divorce decree, legal-separation agreement, or incidental property-settlement agreement that transfers ownership to the borrower’s spouse within its federal successor-in-interest definition.
Source: research/divorce-and-mortgage.md · Primary sourceCFPB’s Regulation X interpretation gives a final divorce decree and executed separation agreement as examples of documents that may be reasonable for confirming a transferred ownership interest when applicable law recognizes those documents without requiring a deed.
Source: research/divorce-and-mortgage.md · Primary sourceNew Jersey Case Information Statement
New Jersey’s official Case Information Statement form requests financial details, income, expenses, assets, liabilities, property title information, and supporting records in the circumstances where the form is required.
Source: research/new-jersey-equity-transition.md · Primary sourceThe New Jersey Case Information Statement instructs that asset values should, if possible, be taken from actual appraisals or account statements and that estimates should be clearly identified as estimates.
Source: research/new-jersey-equity-transition.md · Primary sourceNew York financial disclosure
New York Courts states that, during a divorce, both spouses must tell the judge about their income and debts.
Source: research/new-york-equity-transition.md · Primary sourceNew York Courts distinguishes marital property from separate property for divorce purposes and states that marital property includes property bought by either spouse during the marriage regardless of whose name is on the property.
Source: research/new-york-equity-transition.md · Primary sourceSupport-payment records
Fannie Mae requires evidence of the payment amount and terms through a divorce decree, separation agreement, other written legal agreement, court decree, or documentation of applicable state law that mandates the payments.
Source: research/support-income.md · Primary sourceFannie Mae requires the lender to document receipt of the income for the most recent six months using records such as bank statements, cancelled checks, or evidence of electronic receipt.
Source: research/support-income.md · Primary sourceQuestions to take with the record set
- Bring the deed, note, mortgage or deed of trust, decree, and property settlement to a matrimonial attorney; ask what each document changes and whether any named borrower still needs a creditor-signed release.
- Bring the official Case Information Statement, appraisal or account statements, and this worksheet to a New Jersey matrimonial attorney; ask which fields and supporting records the court form requires and which entries are estimates.
- Bring the decree or support agreement and six months of receipt records to the lender or underwriter; ask which investor guide applies and which items can be considered for the specific application.
This information is educational and is not legal, tax, or financial advice. Consult a licensed attorney or tax professional about your situation.
Source: APPROVED-COMPLIANCE.txtHow to organize divorce home records
Use this sequence to prepare one review packet without treating the packet as a legal conclusion.
Collect ownership and loan records
Collect the deed, promissory note, mortgage or deed of trust, current statement, and any creditor-signed release.
Gather court and financial records
Gather the decree or settlement, the applicable official financial-disclosure form, and the records supporting each entered value.
Separate facts from professional questions
Separate facts shown in the records from questions for the matrimonial attorney, lender or underwriter, appraiser, and tax professional.
Continue
Choose the guide that matches the open question.
Next step
Build a transition fact file
Start with the record organizer, keep entered facts separate from assumptions, and route each unresolved question to the appropriate professional.
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