Quit Claim
A friend of mine owns a piece of property with her husband. Her husband does not want anything to do with this piece of property, so the wife suggested to the husband that he should quit claim the property to her. They both want to know if the quit claim is done, would the husband still be legally liable for the property (e.g. morgage payment )? He thinks he would be because they are still married. She thinks he wouldn't be because he quit claimed it over to her. Who is right? 
He would no longer be the owner of the property if they both agreed and signed a quit claim deed. But, if his name is still on the mortgage, he is still responsible for the loan. She would need to refinance and get his name off of the loan or get the mortgage company to take his name off of the loan.
The answer is.....
It DEPENDS!
The liability is in whose name is on the mortgage.
If he is on the mortgage, but not on the deed, he will still be held responsible.
Both above are correct, if your name is on the mortgage note it stays on until the debt is satisfied. Conversely, if you are added to the deed for the property after the mortgage is drawn, you are not responsible for the mortgage (ie credit hit etc) but if the mortgage is not serviced you will likely lose your property.
Martman, 64 Ford and REcycle, Thank you for your responses. It sounds like you all agree that the liability for the property is on whomever is on the mortgage. Let's say the wife gets the husband;s name off the mortgage, and they get divorced down the road, I'm assuming that since the husbamd's name is not on the mortgage, that that piece of property would not be part of the divorce settlement. That is, that property would be solely owned by the wife.
Also, what if the wife starts up a corporation, and puts that property into the corp. And again the husband's name is not on the mortgage. If they get a divorce does the husband have any rights to that property?
Answer is it depends on the state. Some states (I think California is one), are community property states and both parties would stake an equal claim to the property.
What if the property was located in a community property state, but the corporation was located in a non-community state. Also are you saying that if the husband's name was removed from the mortgage, he would still have an equal stake in the property as part of a divorce settlement?
Location of the property determines what law applies with regard to its transfer.