Yes. How real estate title is held, and what sort of deed it matters in many transactions, including divorce, prenuptial agreements, and estate planning. It is important to understand how a title is currently held before making any changes, sales, or transfers, as these can have legal and tax implications. Through the divorce and estate planning process, we usually see properties that are either community or separate property.
Community property is usually held in joint form, but not always. Community property can be converted to separate property and vice versa, and there are specific laws that apply to each and govern the conversion. Converting from one to the other can have a significant impact when it comes to dividing property at the time of divorce or legal separation.
When transferring property, even between spouses, it is a good idea to seek an attorney’s advice before it is done, to ensure it is done correctly. This will save time and expense in the future.