I live in California, a community property state, and own a house with my soon-to-be ex-husband. The divorce is taking much longer than expected and I'd like to buy a house of my own before the divorce is final.
I'm approved for financing on my own and would like to be the sole person on this future title and mortgage. I've read that an Interspousal Transfer Grant Deed would make the property solely mine and that my still-husband would have no claim to it, but before he signs, he needs to be assured that there are no liabilities for him. I'd like to know how this future property (with Interspousal Transfer Grant Deed done) would/could affect him:
If I should fail to make payments (since we're still legally married) could it possible affect him?
Also, can my owning property (with an ITGD) affect his credit? (He'll be applying for a loan on his own as he'll be buying me out of our current house.)
Any advice you have would be helpful.
Thanks in advance!