Division of marital property/debt

[msouterblight1]

What is the name of your state? Texas

Hello, my wife and I will soon be getting a divorce, and I was wondering what the rules are for division of marital property / debt. I am the only one working, and it has been that way for our entire marriage. My wife ran a home based business, but it has yet to make a profit (so, we were supporting it via money from our budget), we have 2 cars that we are making payments on, we have a house that would NEVER be able to sell for what we owe on the mortgage (at least at this point), we have some credit card debt, and a personal loan from a bank. There are some things around the house that we have, which I'm not really concerned about.

Any way, I think we can work this out without it being a long drawn out process. However, my wife is saying that ALL the debt is mine, and that I should give her one of the cars, and make payments on it until it is paid off. In addition to have a clean slate financially, and the car, she wants me to cash out my retirement, and give her half.

I have 2 children living with me full time from another relationship (yes fathers do sometimes get the children).

One thing that complicates matters is that she was adament about not being on ANY of the loan applications. So, everything is in my name only. I did put her on the credit cards, she wasn't concerned about that...

I have no problem giving her her fair share, but this does not seem fair... She wants me to be saddled with all our debt, and she walks away with no responsibility financially.

My question is: How would our debts and assets be divided if we had to go to court.

Thanks...

[Ohiogal]

Originally Posted by msouterblight1

What is the name of your state? Texas

Hello, my wife and I will soon be getting a divorce, and I was wondering what the rules are for division of marital property / debt. I am the only one working, and it has been that way for our entire marriage. My wife ran a home based business, but it has yet to make a profit (so, we were supporting it via money from our budget), we have 2 cars that we are making payments on, we have a house that would NEVER be able to sell for what we owe on the mortgage (at least at this point), we have some credit card debt, and a personal loan from a bank. There are some things around the house that we have, which I'm not really concerned about.

Any way, I think we can work this out without it being a long drawn out process. However, my wife is saying that ALL the debt is mine, and that I should give her one of the cars, and make payments on it until it is paid off. In addition to have a clean slate financially, and the car, she wants me to cash out my retirement, and give her half.

I have 2 children living with me full time from another relationship (yes fathers do sometimes get the children).

One thing that complicates matters is that she was adament about not being on ANY of the loan applications. So, everything is in my name only. I did put her on the credit cards, she wasn't concerned about that...

I have no problem giving her her fair share, but this does not seem fair... She wants me to be saddled with all our debt, and she walks away with no responsibility financially.

My question is: How would our debts and assets be divided if we had to go to court.

Thanks...

No one knows for sure. However it is highly unlikely that you would get ALL the debt and she would get a car. You also wouldn't be forced to cash out your retirement. She would probably get a portion of it through a QDRO -- meaning when you drew on it during retirement, she too would get a payment. But unless the court ORDERS you to cash it out -- which I don't think they would -- you don't have to do that.

[tigger22472]

Originally Posted by Ohiogal

No one knows for sure. However it is highly unlikely that you would get ALL the debt and she would get a car. You also wouldn't be forced to cash out your retirement. She would probably get a portion of it through a QDRO -- meaning when you drew on it during retirement, she too would get a payment. But unless the court ORDERS you to cash it out -- which I don't think they would -- you don't have to do that.

Although that's correct on the QDRO, it might be a bit premature, the poster didn't mention how long the marriage was.

With that said OP... how long were you and your wife married? Are there any children of this marriage?

[Ohiogal]

Originally Posted by tigger22472

Although that's correct on the QDRO, it might be a bit premature, the poster didn't mention how long the marriage was.

With that said OP... how long were you and your wife married? Are there any children of this marriage?

Good catch. I did say probably but it does depend on how long the OP and wife were married. And then she would only be entitled to part of what was invested during the marriage.

[LdiJ]

Originally Posted by Ohiogal

Good catch. I did say probably but it does depend on how long the OP and wife were married. And then she would only be entitled to part of what was invested during the marriage.

Part of what ACCRUED during the marriage.

Lets also remember that again, based on the length of the marriage its possible that she could be entitled to some short term alimony. Therefore it may not be out of line for him to keep the debt, if the marriage was a long one and she isn't asking for alimony.

If he keeps the house, that part of the debt is his, period. In all honesty, if all of the debt is in his name only....then he is more or less stuck with it....particularly if he wants to protect his credit.

[ceara19]

Originally Posted by LdiJ

Part of what ACCRUED during the marriage.

Lets also remember that again, based on the length of the marriage its possible that she could be entitled to some short term alimony. Therefore it may not be out of line for him to keep the debt, if the marriage was a long one and she isn't asking for alimony.

If he keeps the house, that part of the debt is his, period. In all honesty, if all of the debt is in his name only....then he is more or less stuck with it....particularly if he wants to protect his credit.

It's true that he will need to pay the debt to protect his credit, but it doesn't necessarily mean that he will just be stuck with all of it. Since he's in Texas, technically, she owes half of the marital debt, regardless of who's name is on it. He could use it to negotiate the division of property. It would be very wise of him to ask that her portion of the debt be subtracted from her portion of his retirement. He would still be the one paying the debt, but it would protect at least part of his retirement.

Also, Texas has some of the most narrow guidelines for spousal support. If she's able to work, it's doubtful that SS would be ordered. The marriage would have to have been longer than 10 years for it to even be considered and then it is typically only granted if the spouse was not employed during the marriage or is disabled. A home-based business would count as employment even if there is no profit from it. There is a better chance that he would be ordered to pay SS DURING the divorce proceedings though.

[Movedon]

Pennsylvania at the time
Everything was in my husbands name, house, credit cards, loans, cars, etc. However, I was responsible for half of everything, up to the day I moved out. Half the proceeds from the sale of the house, half the credit card debt, etc. Some things can be used to barter with. I got the older paid off car and the boat, he kept the newer truck and the payment. I got 80% of the proceeds from the sale of the house, he got to keep most the furniture, etc.