I refinanced property in my sole name. The property title was held in a Revocable Trust (in California). The lender required my signature on the documents plus the signatures of the Revocable Trust Trustees on the note. (my wife and myself – each additional signature designating trustee)
I am now in the final stages of a divorce – The MSA has been signed, I have transferred funds to my wife in exchange for her equity in the house. The title has been transferred out of the trust to both my wife and myself and subsequently my wife signed a quit claim deed which transfers title to myself. (both transactions have been recorded with the county)
I have been advised that the revocable trust will be dissolved at final court judgment on the divorce. (due in a few weeks) However, my wife is demanding that I refinance the property a second time because she signed the original note as a trustee to the revocable trust.
What is her liability on the note as a Trustee to a Revocable Trust when the trust is dissolved and I am designated as the primary borrower?
Additional clarification:
Signatures on note were:
My name
My name trustee
My wife trustee
No signature for my wife in her name
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