Breach of Mediated Divorce Settlement by Ex-Wife

[miamirockhead]

What is the name of your state (only U.S. law)? FLORIDA

In my divorce settlement, I gave my ex-wife my interest in the marital home as "lump sum" alimony. The problem is, the mortgage would remain in my name because her credit would not allow her to qualify for her own mortgage. The settlement reads "The WIFE agrees to make any and all household related payments associated with the HOME and shall make all payments timely (including mortgage payments, property taxes, and the like). The WIFE agrees to indemnify the HUSBAND and to hold him harmless regarding any such expenses, including attorney's fees and costs." With that being said, the ex-wife became three months behind on the mortgage. As the mortgage is in my name, I am on the hook. She set up a repayment plan to bring the mortgage back to current status. The problem is that the mortgage company has been and will be reporting this until the mortgage is current again. I had excellent credit and now it's been seriously affected. I have been denied credit on several instances due this circumstance.

Other factors regarding my situation is that my ex and me share custody of our two children, ages 6 and 10. I make all of my child support payments on time. I pay full child support even though I have 50% visitation. I spoke with her attorney about the matter after writing a letter to him urging him to advise her to remedy the matter asap. He indicated that due to her situation of being unemployed, blah, blah, blah that a judge may take mercy on her and not require excessive measures on the ex-wife's part. I don't know if he was trying to stall me to protect his client from my pushing her breach of agreement.

Do I have any recourse due my ex-wife's actions? As I have a mediated divorce settlement signed by my ex-wife, myself, both of our attorneys, the mediator and the judge, I want to force her to 1)Bring the mortgage into current status and allow me to make the payment. It just so happens that the child support payments are a few dollars less than the mortgage payment. 2)Obtain a new mortage in her own name removing my name altogether from the property.

I want to do this without using an attorney as I have no money. Any suggestions? Thanks in advance for your time in answering this.What is the name of your state (only U.S. law)?

[Ohiogal]

File for contempt. Oh and your interest in the house is NOT considered lump sum alimony. I am about 90% certain that it is NOT alimony. It is a property settlement. So hopefully you did not deduct it.

[mistoffolees]

Do not bring child support into the discussion. It's completely irrelevant to the discussion of whether she is paying her mortgage or not. You will NOT be allowed to make the mortgage payments in lieu of child support payments - since that means, in principle, that the children are having to pay the price.

If she is in default, you can file for contempt, but as your attorney has pointed out, if she's unemployed, she can't pay, anyway (unless she has a lot of savings). Your options are:

1. Pay it yourself and then try to collect from her after she's working or if she receives money from another source (Lottery, inheritance, whatever).

2. File for contempt - and risk the judge increasing your child support payment since she's not working now. The judge may well be lenient on her.

3. File for contempt and ask for the house to be sold since she can't afford it.

Discuss the options with your attorney to learn of the pluses and minuses of each.

For anyone else considering such an arrangement, there are a number of major problems with the way this deal was set up:

1. Lump sum alimony is not deductible. Payment over time is (within certain IRS guidelines). It could have been structured as her owning you 1/2 the equity in the house with a certain repayment schedule (including interest) on her side with you paying normal alimony. You would have been able to deduct the alimony, although you'd pay taxes on the interest.

2. NEVER give someone full equity in a home as long as you're still legally liable for the mortgage.

3. Do NOT allow someone to keep your name on the mortgage after a divorce even if you are still on the deed. If they can't refinance, sell the house.