Dissolution

[MEGANJ]

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

I HAVE BEEN MARRIED FOR 11 YEARS. I WAS A SECOND INCOME TO OUR FAMILY AND MY HUSBAND THE BREADWINNER. WE INCURRED A HOUSE 2 CARS AND MISC. DEBT. HE LEFT FOR ANOTHER WOMAN AND WANT TO MOVE ON. HE WANTS TO FILE FOR DISSOLUTION AND INCURR ALL THE DEBT AND I WILL BASICALLY WALK AWAY WITH NO DEBT AND MY OWN INCOME TO SUPPORT ME. MY QUESTION IS, IS THIS THE SMARTEST DECISION ? I AM THE COSIGNER ON ALMOST ALL THE DEBTS, WILL THE DISSOLUTION TAKE CARE OF THAT AND I HAVE NO LEGAL RESPONSIBLITY IF HE SOMEHOW DEFAULTS ON ANY DEBT? WILL I HAVE ANY RESPONSIBILITY IF THAT HAPPENS?

 

[tuffbrk]

Posting in all caps is rude. It means that you are shouting. If you are the co-signer, then no - a dissolution will not absolve you or the debts. He may agree to accept them all, a judge may sign a decree that says he will. However, the creditors are not a party to this agreement. They will still hold you responsible. If he wants to incur all of the debt, then demand that the debt be consolidated and put entirely in his name.

Is there any equity in your home to cover any of the debts? How are the cars being split between the 2 of you?

 

[LdiJ]

Posting in all caps is rude. It means that you are shouting. If you are the co-signer, then no - a dissolution will not absolve you or the debts. He may agree to accept them all, a judge may sign a decree that says he will. However, the creditors are not a party to this agreement. They will still hold you responsible. If he wants to incur all of the debt, then demand that the debt be consolidated and put entirely in his name.

Is there any equity in your home to cover any of the debts? How are the cars being split between the 2 of you?

If the home equity is more than the debt, and particularly if he has a 401k or IRA, it may not be a good deal.

If the assets are approximately equal to the debt, it may be a very fair deal.

It all depends on the actual numbers.

 

[MEGANJ]

not trying to shout at all. so sorry.
the debt is extensive and i dont know that his 401k would cover it enough to try to deal with the legal fees involved in a divorce battle.
do lenders have to be notified in this situation?
i believe he will pay he has never defaulted just kept buying. i just want to walk away.

 

[tuffbrk]

Lenders need to be actively involved. For example, they have to agree to transfer the balance from a joint credit card to a credit card in his name only. Otherwise, even if family court assigns the debt to him, if it is not paid and he defaults - they will come after you. All you will be able to do is file contempt of court in family court against him.

He may not miss payments today, however you do not know what tomorrow will bring. A year ago I never missed a payment. These days I rarely make payments timely. If the burden becomes too much, he can file bankruptcy and walk away with the other party who may be financially solvent or have enough credit to sustain their lifestyle. Thus, his credit score would then have time to recoup. Whereas if you are held responsible for the debts by the creditors you may find yourself in the position of having to file bankruptcy as well. Meanwhile he has walked away with whatever assets the credit purchased.

Frankly, the deal seems too good to be true - and you know that if it sounds too good to be true, it probably isn't. Either he's been stockpiling money in his 401K, pension plan, union savings, or has some CD's you don't know about. I have the impression that he's hiding assets.

No one sayas you need to have a divorce battle, but you do need to consult with a local attorney, obtain some financial disclosure from STBX with supporting documentation and then you should make a decision.