transferred parents property (land and home), to both wife and spouse via quick deed. Deed in both names and has been for years and still married, is this now marital property or still exempt in event of divorce? State of Wisconsin, thank you
1 Answer from Attorneys
Transferring by "quick deed" tell us nothing, since we don't know what the deed said in terms of which type of real estate title the parents were getting. A quitclaim deed could give them anything from marital property to separate property, and might either transfer all of a property, just a part of it, or none of it. Many homemade deeds transfer nothing due to vagueness or due to errors in the legal description. Therefore, nobody without formal real estate training should ever attempt to transfer land, since the language in the deed means everything, and they will not become fully aware of the significance of their errors until years later, when the owners wish to eventually resell or mortgage the property. Such problems become especially bad after the transferors have died or become legally incompetent, preventing them from signing a correction deed, and forcing heirs to go through expensive probate proceedings from scratch. While marital property is sometimes assumed for married parties, that is far from certain. Transfers during life can also have profound capitol gains tax impacts down the road, resulting in huge tax bills which can easily be avoided through professional drafting and consideration of the tax consequences. While homemade deeds have become very popular for parties who think that they are saving money, the full consequences are often unknown until years after their death.
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