An interspousal transfer grant deed transfers the ownership of property from one spouse to another, according to DivorceNet.com. This property transfer is treated as similar to a gift to the receiving spouse, who then owns it outright. This type of property transfer is common during divorce proceedings and may be done for financial reasons.
Interspousal deeds have tax benefits because they contain language that allows the parties to avoid paying transfer taxes, according to California Document Preparers. Other legal language in the deed refers to one spouse relinquishing any legal rights to community property. However, it is not necessary for couples to be divorcing to use this form of deed. An interspousal transfer deed is also sometimes used to separate property rights when one spouse has poor credit, states DivorceNet.com. In this instance, removal of one spouse from a deed might allow the couple to receive better interest rates on a mortgage. There may also be legal reasons to prefer this type of deed over a quitclaim deed.
A quitclaim deed is another option for people seeking to remove property rights from one spouse. This type of deed transfers all property rights without any special promises to either party, notes DivorceNet.com. However, quitclaim deeds do not remove a spouse's financial liability for a transferred property.