What Is an Interspousal Transfer Deed?

An interspousal transfer deed is a legal document that transfers property ownership between married spouses. It is commonly used to add a spouse to the title, remove a spouse from the title, or clarify ownership during marriage, divorce, refinance, or estate planning—usually without triggering transfer taxes or reassessment.

← Back to “What Is… in Real Estate?” Glossary

💡 Why an Interspousal Transfer Deed Matters

This deed lets a married couple transfer real estate between each other without a traditional sale. It is widely used to avoid transfer taxes, prevent reassessment in certain states, and cleanly document changes in marital ownership.

  • ✔ Adds a spouse to property title
  • ✔ Removes a spouse from title during or after divorce
  • ✔ Helps classify property as community or separate property
  • ✔ Commonly required during refinancing
  • ✔ Often exempt from transfer taxes
  • ✔ Helps clarify ownership for estate planning

Related: What Is a Quitclaim Deed?

📌 Common Reasons for an Interspousal Transfer Deed

Couples use this deed in a variety of legal and financial situations:

  • Adding a spouse to title after marriage
  • Removing a spouse during or after divorce
  • Transferring property into a trust (revocable, marital, etc.)
  • Reclassifying ownership as community or separate property
  • Debt protection when one spouse has credit issues
  • Meeting lender or title company requirements during refinance

For similar deed types, see: What Is a Grant Deed?

🔎 How an Interspousal Transfer Deed Works

Although it avoids many taxes, it must still follow formal recording steps:

  • 1. The deed is prepared to transfer ownership between spouses
  • 2. Signed and notarized by the transferring spouse
  • 3. Required tax forms (exemption forms) are completed
  • 4. Recorded with the county recorder where the property is located
  • 5. Title is updated showing the new ownership structure
  • 6. Lender approval may be required if a mortgage exists

If ownership is disputed, a Quiet Title Action may be required.

❗ FSBO Warning: Not All Transfers Are Tax-Exempt

While many counties exempt interspousal transfers from reassessment or transfer taxes, exceptions exist—especially with trusts, divorces, or mortgages.

  • Some counties still charge documentary transfer tax
  • Transfers into a trust may trigger reassessment
  • Lenders may require a qualification or assumption
  • Title insurers may require review or endorsements

Learn more: What Is Title Insurance?

Ready to List Your Home on the MLS?

Save thousands with a Flat Fee MLS Listing—maximum exposure, zero commission pressure.

View Flat Fee MLS Plans →