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Advice on Problem with Divorce Decree

I am having a problem with my divorce decree and need help from my ex to pay some debts down. How do I go about this?

I have been divorced for 16 months, we had marital debt for aprox. 25,000 I have managed to pay down some of the debt,presently we owe $15,000. In the divorce agreement I was to continue paying down the debt until we sold our property at which time I was to be reimbursed, the property hasn't sold (FL) although we decreased the price, I would like my ex to help pay down the debt, what do I need to do? also we are using the property as a rental, the income is to pay the mortgage, although this was resolved during the divorce (court ordered collect the rent and use it to pay the mortgage)the ex has been keeping some of the money and now the mortgage is 52 days in arrears, this is also affecting my credit negatively, what can I do?

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Bill's Answer
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Given the downturn in the American housing market in the past couple of years, many homeowners are experiencing extreme difficulty selling their properties. Unfortunately, the Florida housing market has been one of the hardest hit in the country, especially with a large number of foreclosures which have a tendency to depress housing prices overall. In addition, the foreclosure crisis has hurt many banks and caused them to stop lending money as they previously were. Therefore, even if you can find someone who wants to purchase your home at or near your asking price, the buyer may be unable to obtain the necessary financing to consummate the transaction. While I encourage you to continue trying to sell the property, you probably need to be prepared to continue renting the property for an extended period of time. You should discuss your sale prospects with your real estate agent and/or financial planner to determine the probability of selling your home under current market conditions; if selling does not seem likely in the near future, your can plan for the future with the assumption that the home will remain a rental asset for the time being.

In regard to your responsibilities under the divorce decree to pay your marital debt, you should contact your attorney to discuss the situation and determine your best course of action. If you and your spouse are on amicable terms, your spouse may be willing to assist you with the debt payments voluntarily, especially since your former home has not sold as anticipated by the divorce agreement. However, if your ex is not willing to help you with the monthly payments on these debts, you may need to file a motion with the court to modify your divorce decree. The court may order that your former spouse begin paying a portion of the debts since your home has not sold as expected; what the court will decide in a case such as this will likely depend on which of you the court sees as being more financially able to meet the obligations and what is most equitable for both parties. From my past experience, the court will likely be unwilling to modify the agreement you already accepted unless you can show a compelling reason that the previous order should be changed. Again, you should contact your attorney to discuss the problems you are facing and find out what steps he recommends you take to rectify the situation. If appropriate, your attorney should be able to file the necessary documents with your local courts to request that the previous divorce decree be modified.

You should also discuss with your attorney the fact that your ex is not using the rent proceeds from your property to make the mortgage payments as required by the divorce decree. If she has not been using the rental income to make the mortgage payments as required, she may be in violation of the divorce decree, and the court may order her to bring the mortgage current, and may even require that the rent be paid to you so you can make the mortgage payments yourself. You may wish to speak with your ex-spouse first to find out if she will take the necessary steps to bring the loan current voluntarily, but if she is not willing to do so, your attorney should be able to assist you, either by negotiating with your exÂ’s attorney or by filing the necessary court documents accusing her of violation of the divorce decree.

 

I definitely think that the most important thing for you to do in this situation is to consult with your attorney as soon as possible to determine your recourse in these circumstances. To learn more about what you can do when you ex-spouse violates your divorce decree, you can visit this link.

I wish you the best of luck in resolving this situation, and hope that the information I have provided helps you Find. Learn. Save.

Best,

Bill

www.bills.com/

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4 Comments

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  • 35x35
    Jan, 2009
    Sam
    Bank of America will likely be unwilling to remove your name from the mortgage loan or exempt you from liability. Your husband is able to take responsibility for making the loan payments under the terms of your divorce decree, but your contract with BOA supersedes the divorce decree, and you would likely still be held liable for the loan if your husband defaulted on payments. If your transfer the property to your husband’s name only, he may be able to refinance your current mortgage into a mortgage in his name only, but otherwise, I think you will be fighting an uphill battle to have your name removed from the current loan. I would strongly encourage you to discuss this matter further with your divorce attorney.
    0 Votes

    • RE
      Feb, 2011
      robin
      Mills, WY
      unexpected foreclosure on house due to ex wife not paying 2nd mortgatge awarded to her in divorce causing daughter and I to be evicted. Already have chapter 7 involuntary bankrupcy to pay the bills she owes of 90k with 263k in claimed inventory which is being sold for cash against judges orders(bankrupcy) and claims min. she claims minimum wage. she quit her job to due this.bank is going to buy first mortgage to get its 64k back which is under both of our names which opened up business along with 190k of my inheritance money which was daughtrs college fund. this all awarded to her in divorce leaving me with 100% of debt.problem being is bankrupcy court delaying as she liquadates(against judge orders) and her bankrupcy lawyer resigned with the court for either non pay or discrepencies as the business sold law enforcment guns(machine guns) paid for is is all in inventory which is being earaticated including machine guns- not so easy to sell unlike a house would be. Time is my ememy as feb 17th @ 10 am house goes for sale and chapter 13 will be filed at 9 am on same day. this will leave me with 100% of debt and her hopefully in contempt without attorneys. the 1 hour bothers me as that is cutting it close. all bills will be paid in bankrupcy but credit is bad due to 1 credit card from company, unable to refinance. she is selling all inventory for cash to be untraceable. march 2nd is date for chap 7 again and the judge should see was has happened due to her delays and stalling which is more than likely why she had lawyer and now doesn't. something should be illegal as she is a corporation deliquant on all tax matters and i was investor only. let me know of anything i can do, especially about the 1 hour on house sale before 13 filed. thanks robin she claims minimun wage and child support of 50(fifty) a month. forclosure is 17th on 2nd mortgage
      0 Votes

    • BA
      Feb, 2011
      Bill
      Consult with a lawyer in your state who has experience in family law or bankruptcy. He or she will analyze the facts of your situation and advise you accordingly.
      0 Votes

  • CT
    Jan, 2009
    Cheryl
    RE: Loan # 6933795749 in the name of Edmond B. and Cheryl R. Thomason. We are divorcing and Edmond has agreed to assume this loan. I would like to know what documentation is needed to ensure my name is removed from this loan. I know a quit claim deed will have to be filed (we live in Colorado and the home is in Tennessee) but what documentation will Bank of America be able to give me re: removal of my name and liability for this loan. Thank-you
    0 Votes

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