Ex's Name on Mortgage, Insurance

[lee11]

What is the name of your state? KY

My husband was divorced 2 years ago. His ex signed over the deed to the home to him. He got the home and all of the marital debt. She got everything else. The decree did not state that he had to refinance. He filed bankruptcy after the divorce, but continues to pay on marital debt, so I doubt he would be able to refinance. My debt is probably too high compared to my income for me to help with refinancing.

Are there any potential problems with leaving her name on the mortgage? I am concerned that somehow someday she may be able to have a claim on the property. Also, her name is still on the home insurance. I'm afraid if something were to ever happen, she would be entitled to insurance money.

One thing that concerned me was an incident that happened several months ago. Apparently, she went to the same insurance agent to get a quote on car insurance. Months later when we go to pay our car insurance, we find that they have cancelled his insurance at her request. Home and car (in his name only, bought months after the divorce was final.) We were living without coverage for weeks without knowing it. He had not even received notification.

I work and have already paid to have improvements to the home, including re-flooring and additions. But it almost feels like the home is not completely ours. We love it here, though, and aren't interested in selling & moving the children.

My question is:
Are there any risks to us with her name still on the mortgage and on the insurance?
Thanks.

 

[Ohiogal]

She most probably cancelled the insurance in her name at that address and it happened to be joint insurance. Your husband can be dragged back in to court -- especially since he declared bankruptcy and most likely HER credit took a hit and takes a hit every time he is late with the house payment. If he starts getting behind on the mortgage she would be forced to pay and if she is smart she will take him back in to court and sue for possession of the house and get you and your husband kicked out. Your husband has NO RIGHT to tie up her credit because he screwed up his. And if she raises a fuss, a court would not be happy with him.

Oh and if she is still on the insurance she can definitely make a claim for the money -- any check that arrived would be joint and she wouldn't have to sign it. Nor can the insurance company remove her because she is on the mortgage. Your husband better figure out how to refinance.

 

[lee11]

Thanks, this is exactly what I was afraid of. I sure don't want to invest any more of my money or our future in a home that isn't really ours (like another poster I was reading today.) I've already helped him pay $10,000 of credit card debt that was in her name only. I borrowed money to pay them off because when he had questions about them the banks wouldn't even discuss them with him.

Thanks for the advice.