If I were you, I would immediately retain an attorney to assist you in negotiating with your spouse. The free trader agreement is so she can refinance your home and preumably repay you your share of the equity, an amount that we’ve agreed upon in the separation agreement. The separation agreement should include the language she believes she needs in the free trader agreement. The separation agreement should act as a free trader agreement. I would not sign anything additional at this time.
Until you have divided all of your property and debts, you should not be signing any kind of deed (what she was referring to is actually called a Quit Claim Deed). Further, signing over the deed to your wife does not absolve you of your responsibility under the mortgage. Your mortgage is a separate contract with your lender to repay that loan. The mortgage or Deed of Trust as it is called in NC, is a totally different document and obligation from the deed on your house. In order to get you off the mortgage, your wife would have to refinance the mortgage into her own name. At that time, you could sign over the deed to the house to her, and be totally removed from any obligation or liability on the house. But, be sure you have gotten your 1/2 of the equity, if there is any, before you complete those tasks. Don’t sign anything until you have an agreement that allows for your repayment of the equity from the re-finance. And, don’t sign the quit claim deed until you’ve received your equity from her.