Marital Debt

[Round2]

So if after the house sells/belongings that can be sold, are sold, then you are left with $28k (but in your name presently) to be divided evenly but your spouse had a bankruptcy in 2005 (off the report but still not stellar credit)....what would you do so your STBX takes on her half of the 14K?

[Anything4Her]

She needs to secure a loan for $14K somewhere.
Otherwise, you will be on the hook.

[demurrer]

What jurisdiction?

Consider yourself entirely on the hook because your creditors expect you to pay. Even if the court orders stbx to pay the debt the creditors will have your name on the debt.

What's your income ratio (stbx income / husband income)? Kids?
In my state it would be decided in an Equitable Distribution hearing where (most likely) the higher income earner would be assigned the wonderful task of repayment.

Any taxes due to the IRS for the sale of home and/or mortgage write off?

[BubbaGumpShrimp]

My $.02...I would use that debt to leverage her into signing whatever you need to (i.e. Property Settlement Agreement) to expedite the process. i.e. Take her to a Pendente lite hearing.

The judge is likely going to tell her to take out a loan to assume part of the marital debt. If it were me...I would offer to keep the debt (assuming you can afford to pay it off alone) in order to expedite the divorce process. If that's not an option...go into the hearing and ask to have the court order her to assume 50% of the debt.

As demurrer said...it's your debt and you're 100% on the hook until a court says otherwise.

[jumbledone]

As demurrer said...it's your debt and you're 100% on the hook until a court says otherwise.

No, on the hook no matter what the court says. My understanding is that since you guaranteed the debt, it will be hard to get your name removed from it, whether it is assigned to you or not. I'd be looking for ways to split the debt where your name is not on some of it, if at all possible.

Things like this make me happy that over my soon to be 12 year marriage, we never joined accounts, and had our own CC and banking accounts.

[BubbaGumpShrimp]

As demurrer said...it's your debt and you're 100% on the hook until a court says otherwise.

No, on the hook no matter what the court says. My understanding is that since you guaranteed the debt, it will be hard to get your name removed from it, whether it is assigned to you or not. I'd be looking for ways to split the debt where your name is not on some of it, if at all possible.

Things like this make me happy that over my soon to be 12 year marriage, we never joined accounts, and had our own CC and banking accounts.

It depends on what kind of debt we're talking about. Are we talking about a couple of credit cards with high balances? Then yeah...he's probably $h1t outta luck. Are we talking about secured lines of credit with collateral (i.e. vehicles)? If that's the case, the court can order that she take out a loan, finance the item, and take it over (wipe out his line of credit).

I never did the joint account thing either. The only financial "issue" will be her car. I financed it, but like an idiot...I put both of our names on the title. The car was under x < $10k though...so it won't be THAT big of an issue.

[Round2]

It's a 25k home equity line on the house.

[jumbledone]

The court can order anyone to TRY to secure a loan for the value of the collateral, however, they cannot compel a bank to actually loan that person money.

As demurrer said...it's your debt and you're 100% on the hook until a court says otherwise.

No, on the hook no matter what the court says. My understanding is that since you guaranteed the debt, it will be hard to get your name removed from it, whether it is assigned to you or not. I'd be looking for ways to split the debt where your name is not on some of it, if at all possible.

It depends on what kind of debt we're talking about. Are we talking about a couple of credit cards with high balances? Then yeah...he's probably $h1t outta luck. Are we talking about secured lines of credit with collateral (i.e. vehicles)? If that's the case, the court can order that she take out a loan, finance the item, and take it over (wipe out his line of credit).