For the spouse signing a disclaimer deed, beware. They are usually cloaked in a refinance or purchase to aid the credit process. However, in Arizona it acts like a postnuptial agreement waiving your rights to probably the most valuable asset of the marriage.
Disclaimer deeds have their place, but for mortgage lenders, they are often misused to isolate one party with no income or less than favorable credit from the underwriting process. However, from a divorce legality perspective, once a disclaimer deed is recorded there are only a few situations where it can be voided.
Fraud
Mistake
Obtain a new interest in the property
“from a divorce legality perspective once a disclaimer deed is recorded there are only a few situations where it can be voided.”
There is currently conflicting law up on appeal to determine the fate of disclaimer deeds when a house was purchased during the marriage and only community funds went into the home.
The Benefits of a Disclaimer Deed
Disclaimer Deeds are ideal when a spouse has acquired real estate prior to marriage or has been gifted a family home by inheritance. In those situations, it is important that the sole and separate character of the property be maintained as sole and separate; disclaimer deeds help accomplish this. For these spouses, there are usually also sole and separate asset funds that are being used to pay for the property and any repairs or improvements to the property.
The Courts have not found disclaimer deeds to mean zero division from the asset, but have determined that in these situations the equitable and fair thing to do may not be an equal division.