accident settlement

[kmndkmn]

What is the name of your state?pa
I am considering a divorce from my husband of 10 years (living together 23). He is an alcoholic, doesn't work (disabled) but could if he wanted to, and we have just grown apart. 21 year old daughter who doesn't live at home. We own our home for 8 years (in my name) his downpayment from accident settlement. I am getting a 65,000.00 settlement and he tells me if I divorce him he will get half of it. He thinks all the debt in my name (he never put anything in his name) (the mortgage, daughters school loan, and loan I took out to buy a newcar I will be paying off with my settlement) i should be responsible for, and he should reap the rewards of my settlement but own up to any of the debt. Will I be responsible for all the debt (non of it he signed but all of it we were married at time of) and can he theoretically walk away with half my money. I am hoping to pay off my car loan (which is actually a school loan) and part of daughters school loan. Then he says he will make me sell my car (2005) and give him half of profits. He has me scared and I am unsure of what to do. Any advice would be greatly appreciated.

 

[LdiJ]

What is the name of your state?pa
I am considering a divorce from my husband of 10 years (living together 23). He is an alcoholic, doesn't work (disabled) but could if he wanted to, and we have just grown apart. 21 year old daughter who doesn't live at home. We own our home for 8 years (in my name) his downpayment from accident settlement. I am getting a 65,000.00 settlement and he tells me if I divorce him he will get half of it. He thinks all the debt in my name (he never put anything in his name) (the mortgage, daughters school loan, and loan I took out to buy a newcar I will be paying off with my settlement) i should be responsible for, and he should reap the rewards of my settlement but own up to any of the debt. Will I be responsible for all the debt (non of it he signed but all of it we were married at time of) and can he theoretically walk away with half my money. I am hoping to pay off my car loan (which is actually a school loan) and part of daughters school loan. Then he says he will make me sell my car (2005) and give him half of profits. He has me scared and I am unsure of what to do. Any advice would be greatly appreciated.

Ok...stop and take a big deep breath.

He can't claim on one hand that he is entitled to half of the assets in your name, while claiming on the other hand that he isn't responsible for half of the debts in your name.

However, after 10 years of marriage its pretty much guaranteed that he is going to share equally in both debts and assets. Its possible that you may be able to get a somewhat better than 50/50 split in your favor....but you had probably better be thinking in terms of 50/50, so that anything better is a plus.

That means, that he is entitled to half of the equity in the home (if you keep the home you are responsible for the remaining mortgage), 1/2 of any bank accounts or other assets (including your car, but that doesn't mean that you have to sell it, and his car is also included), 1/2 of the value of any 401ks or IRAs that accrued during the marriage (pre-marital funds are yours or his separate property) etc.

However, he is also responsible for half of the debt as well. My recommendation is that you insist on keeping all of the debt (to protect your credit) as well as a corresponding extra portion of the assets.

However, the best advice that I can give you is to get a good attorney with part of that 65k. Depending on what the 65k was in settlement of...that part might also be your separate property.....AND DO NOT put in into a joint bank account, under ANY circumstances.

 

[Bali Hai]

Ok...stop and take a big deep breath.

He can't claim on one hand that he is entitled to half of the assets in your name, while claiming on the other hand that he isn't responsible for half of the debts in your name.

However, after 10 years of marriage its pretty much guaranteed that he is going to share equally in both debts and assets. Its possible that you may be able to get a somewhat better than 50/50 split in your favor....but you had probably better be thinking in terms of 50/50, so that anything better is a plus.

That means, that he is entitled to half of the equity in the home (if you keep the home you are responsible for the remaining mortgage), 1/2 of any bank accounts or other assets (including your car, but that doesn't mean that you have to sell it, and his car is also included), 1/2 of the value of any 401ks or IRAs that accrued during the marriage (pre-marital funds are yours or his separate property) etc.

However, he is also responsible for half of the debt as well. My recommendation is that you insist on keeping all of the debt (to protect your credit) as well as a corresponding extra portion of the assets.

However, the best advice that I can give you is to get a good attorney with part of that 65k. Depending on what the 65k was in settlement of...that part might also be your separate property.....AND DO NOT put in into a joint bank account, under ANY circumstances.

What about alimony?? The man is disabled and doesn't work.

It sounds like this man has made a considerable contribution to the marriage as a homemaker and sacrificed alot. He is owed!

 

[LdiJ]

What about alimony?? The man is disabled and doesn't work.

It sounds like this man has made a considerable contribution to the marriage as a homemaker and sacrificed alot. He is owed!

That's a possible issue....however it depends to a great extent on how long he was in the workforce and the level of SSDI or SSI he receives. Their child is 21 and they have only been married for 10 years. If he has enough credits to get significant SSDI...then alimony might not be an issue. If he doesn't have significant credits and therefore is receiving only SSI....then it could be an issue.

 

[LawMakerIAAL]

Make sure, in your Marital Settlement Agreement, that the reciprocal debt remains unimpaired by a Bankruptcy discharge, secured by a reciprocal sum of the equity that you're both owed. Then, when the debts have been paid, that same amount will be released to the person or persons who pays off the debts.

For example, if there's $100,000.00 in equity to be shared equally, and there's $40,000.00 in debts to be shared equally, then $20,000.00 from each party's equity share is to be set aside in a locked fund that can only be released by the court on a proper showing of proof that the debts of each party are paid in full.

In this way, he'll think twice about making a deal that disadvantages you, by saying he'll take on all the debt, to get something more positive than you, and then thereafter discharging those debts, thereby, throwing them back in your direction - - and vice-versa.

IAAL

 

[Bali Hai]

That's a possible issue....however it depends to a great extent on how long he was in the workforce and the level of SSDI or SSI he receives. Their child is 21 and they have only been married for 10 years. If he has enough credits to get significant SSDI...then alimony might not be an issue. If he doesn't have significant credits and therefore is receiving only SSI....then it could be an issue.

Good advice.

And I think your advice is excellent regarding OP keeping all the debt for an exchange for his share the marital assets equaling that debt.

The debt is in her name and even if the court split that debt 50/50, there is more than enough risk factor that he may not pay it since he is disabled and doesn't work.

As you point out, it will be her credit that suffers as a result for his failure to pay whether intentional or not.

 

[kmndkmn]

Thanks for the advice. The thing is my husband has probably made a small sacrifice by staying home, I say this only because he can do some jobs but says we should be satisfied with the $599 he brings home and the $150 in food stamps. (what is that like $4 an hour) Even when he was 100 % fit to work he would only work long enough to be able to collect an inemployment check then sit home until it ran out, I on the other hand always kept a full time job, Out of that money he spends $93 a week on cigarettes and beer. So all tolled he brings home a grand total of $227 plus his food stamps. I work full for $9/hr no OT available, and make $100 dollars a month on a side job. He doesn't allow me to work a real part time job. How much alimony can they make me pay, considering I will take over all the debt if possible. Also my settlement is from a car accident I was in with my daughter and I already filed for bankruptcy in 2003 due to me losing a $30,000 a year job and not being able to make ends meet. It is only in my name because all the debt (credit cards, loans, utilities were in my name) Also the other car we have is also in my name and the loan was apersonal one claimed on bankruptcy.

 

[Bali Hai]

Thanks for the advice. The thing is my husband has probably made a small sacrifice by staying home, I say this only because he can do some jobs but says we should be satisfied with the $599 he brings home and the $150 in food stamps. (what is that like $4 an hour) Even when he was 100 % fit to work he would only work long enough to be able to collect an inemployment check then sit home until it ran out, I on the other hand always kept a full time job, Out of that money he spends $93 a week on cigarettes and beer. So all tolled he brings home a grand total of $227 plus his food stamps. I work full for $9/hr no OT available, and make $100 dollars a month on a side job. He doesn't allow me to work a real part time job. How much alimony can they make me pay, considering I will take over all the debt if possible. Also my settlement is from a car accident I was in with my daughter and I already filed for bankruptcy in 2003 due to me losing a $30,000 a year job and not being able to make ends meet. It is only in my name because all the debt (credit cards, loans, utilities were in my name) Also the other car we have is also in my name and the loan was apersonal one claimed on bankruptcy.

If anyone even makes a rational attempt to answer this....I'm in the bushes waiting.

 

[LdiJ]

Thanks for the advice. The thing is my husband has probably made a small sacrifice by staying home, I say this only because he can do some jobs but says we should be satisfied with the $599 he brings home and the $150 in food stamps. (what is that like $4 an hour) Even when he was 100 % fit to work he would only work long enough to be able to collect an inemployment check then sit home until it ran out, I on the other hand always kept a full time job, Out of that money he spends $93 a week on cigarettes and beer. So all tolled he brings home a grand total of $227 plus his food stamps. I work full for $9/hr no OT available, and make $100 dollars a month on a side job. He doesn't allow me to work a real part time job. How much alimony can they make me pay, considering I will take over all the debt if possible. Also my settlement is from a car accident I was in with my daughter and I already filed for bankruptcy in 2003 due to me losing a $30,000 a year job and not being able to make ends meet. It is only in my name because all the debt (credit cards, loans, utilities were in my name) Also the other car we have is also in my name and the loan was apersonal one claimed on bankruptcy.

I am going to repeat the advice that I gave you previously. Put the settlement money into an account in your name only. Use some of it to hire yourself a good attorney.