Don’t Let Your Ex’s Debt Hold You Back Financially

Don't Let Your Ex's Debt Hold You Back Financially

Ensuring that your divorce completely separates your debts and assets so you are not financially tied to your ex for years to come.

Oh, the horror!

Sheila begins receiving notices from a creditor that the mortgage for the house she used to own and live in with her spouse is in default and she owes $30,000.00 immediately. Sheila believes that the notice must have been sent in error as she divorced Brad two years ago and in the divorce he got the house and was supposed to make the mortgage payments.

A few weeks go by and Sheila goes to the car dealership to buy a car.

She is denied a car loan due to her credit report showing that she is delinquent on her mortgage. Yet, she has no mortgage because Brad took it in the divorce. Feeling embarrassed and angered, Sheila leaves the car dealership (in her old car) and returns home to review her divorce documents.

The divorce decree clearly states that Brad was to take the house and to assume the mortgage and the payments under it. She has not spoken to Brad since the divorce and she does not want to now, but she decides to call him on Monday to see what is going on.

On Monday morning as Sheila is walking into work, she is met by a person who hands her a summons and complaint. Upon review of the documents she realizes that she is being sued for foreclosure for the house that Brad got in the divorce.

Instead of calling Brad, Sheila calls Albuquerque Business Law.[1]

This situation occurs over and over. Too often walking into the law office of an attorney who helps with fighting creditors or foreclosures is a person who divorced a few years prior and is now being haunted by their ex’s refusal to pay debts. People often believe that by divorcing all the debts and assets are separated and that the finances of the two spouses are no longer intertwined. This simply is not true.

The end is near.

If you find yourself facing a divorce, now is the time to ensure that you properly divide your assets and liabilities to ensure that there is a complete and final divorce. While a divorce attorney can help you properly divide those assets and liabilities, often divorce attorneys are not equipped with the knowledge to ensure that the division or property is effectuated.

In other words, even though you and your soon to be ex spouse may agree that one spouse will take the house and be responsible for the mortgage, that agreement is not binding on third parties including your mortgage lender. Thus, it is important to involve an attorney who knows how to ensure that there is a legal division that will be binding on third parties.

One way is to refinance your property, but sometimes this is not always feasible. If you are getting divorced, ensure that the division of your property is complete. Contact an experienced real estate attorney at Albuquerque Business Law today.

Is it too late?

If you have already divorced, it is not too late for you to ensure that the assets and liabilities are completely separated from your ex. It will be a little more difficult, but it definitely can be done. Furthermore, it is important to try to separate your liabilities before your ex affects your credit and makes you liable on a debt that is no longer yours.

If you find yourself in a similar situation as Shelia, it is not too late. Contact an experienced real estate attorney at Albuquerque Business Law today.

[1]The proceeding story is fictitious and is not based on any particular client seen by Albuquerque Business Law.

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