Chicago TitlePro Blog

Love, Title & Real Estate: What Happens to Property When Relationships Change?

Valentine’s Day usually gets us thinking about flowers, cards, dinner reservations, and all the other ways people show someone they care.

But in the title and escrow business, love and real estate” can mean something very different.

Over the years, we’ve seen plenty of situations where two people fall in love, buy property together, add one another to title—or make decisions about real estate while married—and then discover later that changing the relationship doesn’t automatically change ownership of the property.

And that can create some serious complications.

Adding Someone to Title Is a Big Decision

Let’s say you own a home by yourself. Later, you enter a relationship and decide to add your partner to the title.

At the time, it may seem like a simple gesture.

But once someone has an ownership interest in real property, removing that person later generally isn’t as simple as changing a name on an account.

If the relationship ends and you decide to sell, that person may still need to participate in the transaction and sign the appropriate documents. If there is a disagreement over ownership, the issue can become significantly more complicated and may require legal guidance or court involvement.

That’s why you should understand exactly what you’re signing before adding anyone to title.

Divorce Doesn't Automatically Change the Deed

Another common misconception involves divorce.

Suppose a married couple owns a property together and, during the divorce, one spouse is awarded the home.

That court order can be extremely important—but the public title record may still need to be addressed.

Depending on the circumstances, an appropriate deed or other documentation may need to be executed and recorded so the title reflects the intended ownership.

This is one reason we always encourage people dealing with divorce, trusts, estates, or other major life changes to address title questions early rather than discovering a problem when they're already trying to sell or refinance.

Buying Property While Married Can Have Additional Consequences

California's community-property laws can also affect real estate ownership.

How property is acquired, how title is held, when it was purchased, where the funds came from, and the marital circumstances can all matter.

The important point isn't to try to become your own real estate attorney.

It's to recognize that the way you take title matters.

A decision that seems straightforward today can affect a future sale, refinance, estate plan, divorce, or transfer.

Love Changes. The Public Record Doesn't Change by Itself.

That may be the simplest lesson in all of this.

People get married. People get divorced. Relationships change. Families change. Estate plans change.

But recorded ownership doesn't simply update itself because your personal circumstances changed.

Before adding someone to title, removing someone from title, transferring property during a divorce, or making another significant ownership change, make sure you understand what the transaction actually does.

A few questions beforehand can prevent a very expensive problem later.

And when you're not sure how your property is currently vested, that's exactly the kind of thing worth checking before you need to sell, refinance, or transfer it.

Bobby Tarango & Mike Arias
#1 Title & Escrow Team in the Nation

Free Title Assessment: TitlesEverything.com
Title & real estate resources: ChicagoTitlePro.com
Follow us: @MikeandBobbyShow

This article is for general informational purposes and is not legal or tax advice. Ownership, divorce, community-property, and deed issues can be fact-specific; consult the appropriate legal or tax professional for advice about your situation.