Assumption after Divorce
I am recently divorced. My Ex-wife abandoned the home we lived in and as part of our MSA she is giving me the home. We applied for an assumption and it was granted. Now the title company (ex-wife's friend) we are using to close with says we will have to pay several thousand in transfer taxes and fees. Does that sound right? Its not a sale .. But an assumption. Why whould I be stuck with transfer taxes?
1 Answer from Attorneys
Re: Assumption after Divorce
It is a transfer--your ex is transferring her interest in the property to you. However, property transferred between former spouses is not subject to transfer and recordation taxes, as the title company should know. Tell them to check Secs. 12-108(d) and 13-207(d) of the Tax Property Article of the MD Code.