Bill's Answer:
Bills.com Resident Expert
This is a very good question... and a very complicated situation. The short answer is that you will likely have to seek legal counsel from an attorney in your area regarding loans and divorce. It is highly likely that you will have to pursue this account through a legal process, to force your husband to pay the debt. If you were a joint-borrower on the original account, the creditor will most likely pursue you and your husband to collect on the debt.
Most creditors will not accept a divorce settlement as legally binding, and they will still pursue the account (and you).
I hope the information helped you Find. Learn. Save.
Best,
Bill
Bills.com
March 31, 2010
March 31, 2010
State law determines how assets are distributed upon divorce. Each state's laws are unique in this area, and questions such as yours are also very fact-dependent. I do not know your state of residence. I only know what you have written about your situation. It would be foolish for me to offer an observation about how to handle the balance of the credit card in question. Consult with an attorney in your state with experience in family law. He or she will be able to review your entire situation and offer a precise opinion.
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Mike A.
March 31, 2010
March 31, 2010
My wife and I are getting a divorce. Knowone has been served with papers yet. We sold our house. She asked the lawyer to put the proceeds of the house in his escrow account. She gave the lawyer a list of marital debt to be paid of with the proceeds. She did not include a Buisness credit card that was under my name. The credit card was used for the buisness which I owned, and for personal things for the family. My wife was responsible for paying the bills on this card and did so with intermingled funds from our buisness account and our joint checking account.I would like to know if she is responsible for half of the debt on this card due to the fact that she has been paying it with marital monies and that we used the card for familie porposes as well as keeping our buisness afloat.
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Bills.com
March 19, 2010
March 19, 2010
Your options are few. You do not mention who was given possession of the vehicle. If your ex-spouse has possession, contact her immediately and explain your situation and that you are about to violate your divorce agreement. She may wish to start making the payments, which you will be obligated to repay her when your financial situation improves. If your ex-spouse is not in possession of the vehicle, you should still contact her to alert her to the fact that she is about to be inundated with collection calls. See the Bills.com resource Voluntary repossession to learn more about your only viable option. Because your ex-spouse is the debtor, she will be obligated to pay the deficiency balance. She, in turn, has a cause of action against you to repay her the deficiency balance.
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Ryan .
March 19, 2010
March 19, 2010
I have been divorced from my ex for a year now. In the decree, i was to take responsibility for the payments of the car, however, the loan is solely in her name. I'm not in a situation where i can't afford the car and the bank is threatening to reposes the vehicle. What can i do to get rid of this car? the loan is so upside down that the value of the car only comes within $10k of the loan.
Thanks
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Bills.com
January 12, 2010
January 12, 2010
If I understand your somewhat cryptic question correctly, your father is a signatory on your spouse's student loan. You want to know your liability for your spouse's student loans. If you plan to continue to be married to your spouse, the answer depends on your state of residence. If you reside in a community property state, you are jointly liable for the debt. If not, it is his separate liability. However, if you are planning a divorce and live in a community property state, the student loan debt is his alone. The fact that your father is a signatory is irrelevant to any liability you may or may not have.
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Jason Y.
Ontario, CA | August 30, 2011
Ontario, CA | August 30, 2011
My wife has got our divorce finalized. She is now driving the car which owns loan solely under my name. Our divorce was simple. We don't have any joined asset. Can I still get my car back?
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Bills.com
August 31, 2011
August 31, 2011
What did the divorce decree say about the division of property?
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Jessica .
January 11, 2010
January 11, 2010
A student loan in my spouses name, co signed by my father. Am I responsible for the debt, especially if my father released me of the obligation, although it was used for dual purposes in some cases?
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Bills.com
September 08, 2009
September 08, 2009
In general in the US, if Spouse A takes out a loan in his or her name, the creditor will attempt to collect from Spouse A. However, in some states, both Spouse A and B may be liable if the creditor sues both to collect the debt. If divorce is an issue, if the debt was for the benefit of the marital estate, then the court may treat the debt a a joint liability. However, if the debt is for a student loan, then it's a separate liability. This is a tricky area of law where the state of residence of the spouses matters. Rowan, your return address is the UK, and I do not know if family law is handled consistently in England, Northern Ireland, Scotland, and Wales. I recommend you consult with a solicitor (if you are in the UK) or an attorney (if you are in the US) experienced in family law.
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Sarah G.
Lawrence, KS | March 09, 2011
Lawrence, KS | March 09, 2011
I am in the situation where student loans are an issue, we each have federal student loans taken out in our respective names. How can I find out whether my state considers that a joint marital liability or separate liabilities. I am in Kansas.
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Bills.com
March 10, 2011
March 10, 2011
One way to find out is to consult with an experienced bankruptcy attorney in Kansas. In general, the issue of spousal liability for student loan debt is an issue in a community property state and Kansas is not a community property state. Therefore, I think it is likely that the debts are viewed as separate, not joint. Still, to get an authoritative answer, seek a free consultation with an attorney.
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Rowan .
September 03, 2009
September 03, 2009
are all loans that are under one name just mean that that person is solely responsible for that loan even though it was used for dual purposes
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Bills.com
May 27, 2009
May 27, 2009
As you signed for the loan, you alone will be held responsible for the payments on this loan.
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Andrew P.
May 27, 2009
May 27, 2009
I have been married for 11 years in the last few years i took out a loan for a new car which my wife drives. I had to take the loan out in my name because I own the most money and have the better credit history, the money was paid into my account and I paid for the car, i have kept up with the payments and now we have separated. My wife refuses to give back the car, even though I have offered to but one that is not as expensive. the money made off the selling the car would go to paying part of the loan off. who is responsible for the loan?
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