Maryland

Quitclaim Deed in a Divorce: What to Know First

A quitclaim deed is the document people hear about first and understand least. This page states no legal effect of any deed. Before you sign one, ask your attorney what it does to your rights, ask your lender in writing what happens to the loan, and ask your title company what it requires and costs.

By Marc Cormier

Licenses: Maryland #620443 | Virginia #0225175181 | DC #SP98365998 | Berkshire Hathaway HomeServices

27+ years in real estate. 800+ closed transactions.

Certified as a Certified Divorce Real Estate Expert (CDRE) in 2014.

Last updated: October 2, 2026

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What should you ask before you sign any deed?

Ask three people three questions. This page states no legal effect of any deed, because I did not verify one in a primary source. Your attorney answers that part.

Ask your attorney: What does this deed do to my ownership and my rights? Ask for the answer in writing.
Ask your lender: What happens to the loan if I sign this deed? Ask for the answer in writing.
Ask your title company: What does this deed require, and what does it cost? Ask who pays each cost.

Do not assume the deed changes your loan. Do not assume it leaves your loan alone. Ask.

A quitclaim deed is the name people hear first. Hearing the name does not tell you what it does. Each spouse needs their own attorney. I am a REALTOR®. I do not give legal or tax advice, and I do not recommend one attorney over another.

What do you get in writing first?

Get five items in writing before you sign any deed. Each one is a number, a date, or a name.

The buyout amount, and the share of the equity it is based on.
A payoff letter for every loan on the house. That includes a second mortgage or a home equity line.
The lender's written answer on the loan and on any release of your name.
The closing date.
Who pays each cost, including the lender's closing costs, the title company's fees, and any transfer or recordation tax. Ask your title company and your attorney for the tax figure. I state no rate.

A promise at the kitchen table is not a written term. Put it on paper and ask your attorney to review it.

Why does the order of signing matter?

Do not sign a deed before the buyout money and the loan release are settled in writing. Settle the money first. Settle the loan release second. Sign the deed last.

The reason is practical. Once you sign, you rely on the other side to finish. If the money is late or the loan answer is no, you hold a promise instead of cash. Ask your attorney what protects you in that gap. Ask before you sign, not after.

I have seen this mistake before. One spouse signs early to show good faith. The other spouse then has no reason to hurry.

What does Maryland law say about a transfer of the home?

Maryland Family Law Article section 8-205(a)(2)(iii) lets the court transfer a jointly owned principal residence to the other spouse if that spouse obtains release from liens. It also lets the court authorize a purchase of the other spouse's interest on court terms, or both. The transfer is subject to the lien terms.

Two points follow from the text. First, a transfer to one spouse is tied to a release from the liens. A lien release is a lender question. Ask your lender. Second, the statute names a court order. Spouses who agree set their own terms in writing. Your attorney writes them.

Fannie Mae Selling Guide section B2-1.3-02 (version dated 10/08/2025) treats a buyout of one owner by another, for example as a result of a divorce settlement, as a limited cash-out refinance if the property was jointly owned for at least 12 months. All parties sign a written agreement that states the terms of the property transfer and what happens to the refinance proceeds. The borrower who takes sole ownership does not receive any of the proceeds. The buyer must qualify for the mortgage.

That rule is Fannie Mae's. A lender sets its own terms and often adds its own rules. Ask your lender whether it follows the Fannie Mae buyout rule and what it needs from you. I did not verify the rules for other loan types.

What does the buyout math look like?

Equity is value minus every loan. An even buyout is half of the equity. Made-up numbers.

Line	Amount
Home value	$600,000
Mortgage payoff	minus $250,000
Equity	$350,000
Even split buyout (half of $350,000)	$175,000

Check the math: $600,000 minus $250,000 is $350,000. Half of $350,000 is $175,000. Maryland section 8-205 contains no 50/50 rule. Your agreement or the court sets the share. Half is the example.

Now follow the money if a new loan pays for it. Made-up numbers.

Where the new loan money goes	Amount
Pay off the old mortgage	$250,000
Pay your spouse the buyout	$175,000
Cash to the spouse who keeps the home	$0
New loan	$425,000

Check the math: $250,000 plus $175,000 is $425,000. The lender decides whether to approve a $425,000 loan on one income. Until that approval is in writing, the $175,000 depends on a loan nobody has approved. That is the number at risk if a deed is signed first.

If keeping the home does not work, here is how a divorce sale runs.

Checklist: step, who to ask, what to get in writing

Work the steps in this order. The deed is the last row.

Step	Who to ask	What to get in writing
1. Agree on one neutral value	Appraiser or both spouses, then your attorney	The value and a tiebreak rule
2. Agree on the buyout amount	Your attorney	The amount, the share, and the payment date
3. Ask what happens to the loan	Your lender	A written answer on the loan, the approval on one income, and any release
4. Get every payoff	Each lender	A payoff letter for each loan, with a date
5. Ask what the deed does	Your attorney	A written answer on your ownership and your rights
6. Ask what the deed requires and costs	Your title company	The requirements, every fee, and any transfer or recordation tax
7. Agree on the date and the costs	Your attorney	The closing date and who pays each cost
8. Agree on the closing order	Your attorney and your title company	Money and loan release first, deed last

Do not skip a row. A blank row is a question you have not asked.

What this means for your house

This page states no legal effect of a quitclaim deed. Ask your attorney what a deed does to your ownership and your rights.
Ask your lender in writing what happens to the loan.
Ask your title company what a deed requires and what it costs.
Get the buyout amount, every payoff, the date, and the cost split in writing first.
Section 8-205(a)(2)(iii) ties a court ordered transfer to a release from liens or an authorized buyout.
Do not sign a deed before the buyout money and the loan release are settled in writing.
Ask your tax professional before you sign anything.

Where this goes wrong

Signing a deed before the buyout money and the loan release are done is the costly mistake. These are risks, not rules. Ask your attorney how each one applies to you.

Risk: you hold a promise to be paid instead of the money. In the example, that is $175,000.
Risk: the lender says no to the new loan on one income. The buyout fails after you signed.
Risk: your name stays on a loan for a house you no longer control. Ask your lender what that means for you.
Risk: a cost surfaces at closing that nobody agreed to pay. Ask your title company for the list first.
Risk: a second loan or lien appears that nobody counted. Ask for every payoff before you agree to a number.
Risk: the terms live in texts and phone calls. Put every term on paper.

This is where people usually get hurt. They sign the paper that feels like progress and leave the money for later. Most people ask the lender nothing until the refinance falls apart. Ask first.

If keeping the home does not work, here is how a divorce sale runs.

Local note for Montgomery County: The Montgomery County Circuit Court runs a Family Law Self-Help Center. It is a free walk-in clinic staffed by attorneys, in the South Tower, First Floor, Room 1500. It gives general legal information or limited legal advice on divorce, custody, and related matters. You still pay case fees and costs. Source: https://www.montgomerycountymd.gov/circuit-court/services/family-law-self-help-center

Questions about a quitclaim deed in a Maryland divorce

Q1. What should I ask before I sign a deed in a divorce?

Ask three people three questions. Ask your attorney what the deed does to your ownership and your rights. Ask your lender in writing what happens to the loan. Ask your title company what the deed requires and what it costs. This page states no legal effect of any deed. Sign nothing until you hold all three answers.

Q2. What should I get in writing before I sign a deed?

Get the buyout amount, the payoff of every loan, the lender's written answer on the loan release, the closing date, and who pays each cost. In a made-up example, an even buyout on a $600,000 home with a $250,000 mortgage is $175,000. Ask your attorney to review the written terms.

Q3. In what order do the money, the loan release, and the deed happen?

Settle the money and the loan release in writing first. Sign the deed last. Ask your attorney and your title company to put the closing order on paper before anyone signs. If the buyout money or the loan release is not done, hold the deed. This is a practical order, not a statement of law.

Q4. Can I buy out my spouse?

Yes, if your spouse agrees on the value and the share and you are able to fund the payment. The buyout equals equity times the agreed share. Equity is value minus the mortgage. If a loan funds it, a lender decides whether you qualify. Section 8-205(a)(2)(iii) also lets the court authorize a buyout on its terms. Your attorney writes the terms.

Q5. Can the court transfer the house to one spouse?

Yes, for a jointly owned home used as the principal residence. Section 8-205(a)(2)(iii) lets the court order a transfer to the other spouse if that spouse obtains release from the liens. The court is also allowed to authorize a buyout on terms it sets, or to do both. Lien terms apply. Ask your attorney how this works on your deed.

Q6. How do I get my spouse off the mortgage?

Three routes are worth pricing: sell the house and pay off the loan, refinance into one name, or ask your lender whether any option exists to take over the existing loan. The lender decides which of these it approves. Read your loan papers and ask a lender before you promise a buyout. If keeping the home does not work, here is how a divorce sale runs.

Q7. Can I buy out my spouse without it being a cash-out refinance?

Often, if the loan follows Fannie Mae's buyout rule. The Selling Guide treats a buyout of one owner by another, such as in a divorce settlement, as a limited cash-out refinance if the home was jointly owned at least 12 months. All parties sign a written agreement on the transfer and the proceeds. The spouse who keeps the home receives no proceeds. Ask your lender, because other loan types have their own rules.

Q8. Do we pay transfer tax on a buyout?

Ask your title company and your attorney. Whether a Maryland transfer or recordation tax applies to a buyout, and how much, is a question for them. Do not assume a rate or an exemption. Add the answer to your buyout budget next to the loan closing costs and the appraisal before you sign.

Do you need a divorce attorney?

You should have your own. I am a real estate agent. I do not give legal advice, and I do not work for one spouse against the other.

I am not affiliated with any law firm. I do not recommend one attorney over another. Your spouse needs their own attorney, not yours.

If you need to find one, start with the bar association referral services:

Links open in a new tab.

What an attorney handles	What I handle
Who gets the house and the money	The value of the house
The marital settlement agreement	The net sheet
Court orders that affect the sale	Listing, showings, offers, and closing
Custody, support, and everything outside real estate	A written record of every showing and decision

General information only. Not legal, tax, or financial advice. The referral services are independent of me. I do not guarantee any attorney's work or results.

About the Author

Marc Cormier