Divorce in Nevada can be quick and straightforward, especially for couples without children who agree on settlement terms. Unlike many states, Nevada allows for an efficient divorce process. However, property ownership issues are often overlooked—and can lead to costly complications later.
A Common Scenario: Michelle and David
Consider Michelle and David, who were married for twenty years and chose to separate amicably. With no children and a desire to minimize legal costs, they hired a single attorney and agreed to divide their assets 50/50. David would remain in their Nevada home, while Michelle relocated for a new job opportunity. As part of the settlement, Michelle signed a Quit Claim Deed, relinquishing her interest in the property to David.
Fast forward a year: David decides to sell the home. To his surprise, Title and Escrow require Michelle to sign a new Deed and an Affidavit confirming she no longer has a financial, equitable, and monetary interest, as well as respond to questions about consideration received. With the buyer’s contract close to expiring, David must urgently contact Michelle, creating a stressful situation for both.
The Root of the Issue
Quit Claim Deeds are not typically accepted by Title and Escrow to fully relinquish spousal interest. Without an Affidavit confirming Michelle’s execution of the Deed and relinquishing all financial claims, the property is considered to have an “Uninsured Deed” transfer—requiring her further involvement before it can be sold.
This is a common issue, especially among couples who separate before divorcing. While attorneys generally handle the Divorce Decree and Deed, they may not ensure Title requirements are met. As a result, the spouse retaining the property may discover later that their ex’s cooperation is still needed—at which point the ex may seek additional compensation based on the property’s increased value.
How to Avoid Complications
To prevent these problems, consult a trained Title industry professional in addition to your attorney. While attorneys manage divorce matters, Title experts ensure all property documents are properly executed and insurable.
Here are key steps to avoid post-divorce property issues:
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Use Full Legal Descriptions: Property addresses or parcel numbers (APNs) are insufficient. All property references should include the full legal description as required by Title standards.
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Include Decree Provisions: Add provisions in the Divorce Decree allowing the Clerk-of-the-Court to sign documents if either party fails to comply.
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Complete an Affidavit: A Deed alone does not fully remove financial interest. An Affidavit confirming the release of any claims is critical—even if property terms are included in the Divorce Decree.
By addressing these considerations early, couples can avoid future disputes, delays, and unexpected demands. The takeaway is clear: handle property matters thoroughly and promptly to prevent complications down the line.
Call to Action
Don’t let overlooked paperwork delay your future plans. Whether you’re going through a divorce or planning to sell a property post-divorce, work with both your attorney and a trusted Title professional to ensure all documents are properly prepared and recorded. A little diligence today can save you time, money, and stress tomorrow.
