marital assets and liabilities

[Rowan602]

What is the name of your state? Colorado

My best friend is getting a divorce (the marriage was 7 years long, and there are two children) and is wondering about what items are actually considered marital assets and liabilities, and what items are considered personal assets and liabilities. Her husband has really bad credit, so all the credit cards are in her name.

Last summer, she got approved for a credit line from Dell and bought two laptop computers, one for each of them. The credit line is in her name only and there is no signed agreement as to the division of the payments. The verbal agreement was that he would pay a portion of the payments to cover the cost of his computer. Now that they're getting divorced, he wants to include the monthly minimum payment in the alimony. However, since she's not sure how long she'll be getting alimony, she may not get enough money to cover the cost of his computer. She told him that if he could pay off the remaining amount on the bill for his computer only, he could keep it, otherwise she was going to keep it, as she doesn't feel that it's fair to have to finish paying off the interest and cost of his computer when she can't use what she's paying for. He maintains that the computer is a marital asset, and the judge won't let her keep both computers. She plans to sell his computer once the divorce is final, and use the money to pay off a portion of the bill.

They also have a minivan that is in both their names, with a significant amount still owing. Her husband wants to take the oldest son's bed so he'll have a place to sleep, however he is also planning on taking their futon. He also is taking the TV and DVD player, as well as the microwave, and several other things.

So here are the questions:

1. Are the credit cards considered a marital liability or a personal liability, since they are in her name only? Should she request that he be required to pay a portion of the bills, since the credit cards were used to benefit the family?

2. Are the computers considered a marital asset? Given that the credit line is in her name only, there is no written agreement between them concerning the legal ownership of the computers or how the payments would be made, are the computers hers, or theirs? Does she have the right to keep both laptops, since the bill is in her name only and she will be the one paying it?

She is really worried that he'll agree to pay for his computer and then refuse to do so once they're no longer living together. She doesn't want to end up paying for a computer that she doesn't have. If anybody has any ideas or advice, it would be greatly appreciated.

Thanks

[LdiJ]

Originally Posted by Rowan602

What is the name of your state? Colorado

My best friend is getting a divorce (the marriage was 7 years long, and there are two children) and is wondering about what items are actually considered marital assets and liabilities, and what items are considered personal assets and liabilities. Her husband has really bad credit, so all the credit cards are in her name.

Last summer, she got approved for a credit line from Dell and bought two laptop computers, one for each of them. The credit line is in her name only and there is no signed agreement as to the division of the payments. The verbal agreement was that he would pay a portion of the payments to cover the cost of his computer. Now that they're getting divorced, he wants to include the monthly minimum payment in the alimony. However, since she's not sure how long she'll be getting alimony, she may not get enough money to cover the cost of his computer. She told him that if he could pay off the remaining amount on the bill for his computer only, he could keep it, otherwise she was going to keep it, as she doesn't feel that it's fair to have to finish paying off the interest and cost of his computer when she can't use what she's paying for. He maintains that the computer is a marital asset, and the judge won't let her keep both computers. She plans to sell his computer once the divorce is final, and use the money to pay off a portion of the bill.

They also have a minivan that is in both their names, with a significant amount still owing. Her husband wants to take the oldest son's bed so he'll have a place to sleep, however he is also planning on taking their futon. He also is taking the TV and DVD player, as well as the microwave, and several other things.

So here are the questions:

1. Are the credit cards considered a marital liability or a personal liability, since they are in her name only? Should she request that he be required to pay a portion of the bills, since the credit cards were used to benefit the family?

2. Are the computers considered a marital asset? Given that the credit line is in her name only, there is no written agreement between them concerning the legal ownership of the computers or how the payments would be made, are the computers hers, or theirs? Does she have the right to keep both laptops, since the bill is in her name only and she will be the one paying it?

She is really worried that he'll agree to pay for his computer and then refuse to do so once they're no longer living together. She doesn't want to end up paying for a computer that she doesn't have. If anybody has any ideas or advice, it would be greatly appreciated.

Thanks

All of it is marital assets, and all of it is marital debt. Everything will end up divided down the middle.

HOWEVER, since all of the debt is in her name, odds are that she is going to get stuck paying for it unless he is very honorable....or will go through heck to collect from him.

She definitely should not accept any debt payments being included in alimony. Alimony is tax deductible for him, and taxable income to her. She doesn't want to be paying tax on his half of the marital debt.

[Rowan602]

He is definitely not honorable, he's a compulsive liar. So does that mean she cannot legally keep the computer, and will probably end up paying for it even though he has it? Is there any way that she can legally keep the computer? This probably doesn't make a difference, but when she bought the computers, they were separated and trying to work things out. At the time, she lived in AR and he lived in CO. It wasn't a legal separation, and no paperwork had been filed at that time.

Thanks so much for responding, and if there are any other ideas, or any answers about whether or not she can keep the computer, it would be greatly appreciated.

[LdiJ]

Originally Posted by Rowan602

He is definitely not honorable, he's a compulsive liar. So does that mean she cannot legally keep the computer, and will probably end up paying for it even though he has it? Is there any way that she can legally keep the computer? This probably doesn't make a difference, but when she bought the computers, they were separated and trying to work things out. At the time, she lived in AR and he lived in CO. It wasn't a legal separation, and no paperwork had been filed at that time.

Thanks so much for responding, and if there are any other ideas, or any answers about whether or not she can keep the computer, it would be greatly appreciated.

Generally, when there is a specific debt in relation to an asset, then the person responsible for the debt keeps the asset, or the person who keeps the asset is responsible for the debt.

So yes, its possible that she would get to keep the computer....and she certainly shouldn't let go of it if its in her possession now.

However, I have to say, that it was damned dumb of her to finance an expense asset for him when they were separated and living in different states. I know this is going to sound very rude, but if someone is that dumb, then sometimes its better if they do get stuck with the consequences, so that they hopefully learn a lesson for the future.

[nextwife]

THis is a short term marriage AND she obviously has an income of her own, else she would not have been able to obtain credit in her name only. UNless he is agreeable, by the time they get to court, to voluntarilly pay SS, alimony is NOT an automatic.

[Bali Hai]

Originally Posted by LdiJ

Generally, when there is a specific debt in relation to an asset, then the person responsible for the debt keeps the asset, or the person who keeps the asset is responsible for the debt.

So yes, its possible that she would get to keep the computer....and she certainly shouldn't let go of it if its in her possession now.

However, I have to say, that it was damned dumb of her to finance an expense asset for him when they were separated and living in different states. I know this is going to sound very rude, but if someone is that dumb, then sometimes its better if they do get stuck with the consequences, so that they hopefully learn a lesson for the future.

You are damn smart mom.

Don't worry about the possibility of being rude. Leave that to the professionals.

[Bali Hai]

Originally Posted by nextwife

THis is a short term marriage AND she obviously has an income of her own, else she would not have been able to obtain credit in her name only. UNless he is agreeable, by the time they get to court, to voluntarilly pay SS, alimony is NOT an automatic.

I question why alimony is stamped in so many judical brains that there has to be a decision whether it is ordered or "automatic".

[Rowan602]

LdiJ,

Thanks, that was the question I needed answered. I agree with you, it was really dumb, and it is a mistake she needs to learn not to repeat. However, if she can avoid him having the computer, it would be a good thing.

Nextwife,

I realize that this is a short term marriage, and I've tried telling her several times that alimony is not a sure thing. However, the credit was obtained when they were separated and she was living in AR. At that time she was working and living on her own. For the length of the marriage, the only time period when she was working was the 5 months that she was living in AR. The rest of the time she stayed home and took care of the kids, because her husband did not want to pay for daycare. In Arkansas, she worked at a daycare and was in a transitional housing program that allowed her to live in an apartment at reduced rent. At that time, he was paying her $400 in Child support and he was paying the note on the minivan. I'm honestly not sure how she managed to get approved for the credit line, but she did, and she bought a computer for school. She ended up buying the second one so that they would be able to talk online and keep the phone bills down. I agree that she made some BIIIIGGGG mistakes here, but all she can do now is deal with it as best she can.

Thanks to both of you for responding!