Personal Loan

[whitelittle]

What is the name of your state? WI

My soon to be ex husband entered into a personal loan with his parent's that I was not made aware of after we separated (I have an email sent by him that confirms a date of separation). I live in WI which is a 50/50 state - will I be responsible for half of this loan even though I had no knowledge it was taking place? He used the majority of the money to pay off credit card bills in his name.

Thanks for any help in advance!

[Ohiogal]

Originally Posted by whitelittle

What is the name of your state? WI

My soon to be ex husband entered into a personal loan with his parent's that I was not made aware of after we separated (I have an email sent by him that confirms a date of separation). I live in WI which is a 50/50 state - will I be responsible for half of this loan even though I had no knowledge it was taking place? He used the majority of the money to pay off credit card bills in his name.

Thanks for any help in advance!

Is this a legal separation? Or just a separation in which you or he moved out? if you are not legally separated then it is a marital debt. Is your name on the IOU? What proof is there that a loan exists?

[whitelittle]

We are not legally separated, but are in the process of filing for divorce. I'm not sure if he signed a contract with his parents, but I never even knew the loan occured. If he signed an IOU almost a year after we both agreed we separated for good, then does that mean that I am liable?

Thanks

[Ohiogal]

Dont know which way the judge would go (50/50) but a good attorney could make a very strong case that you shouldn't have liability because you werne't with him, weren't aware of the loan and what not. However, why haven't you filed for divorce yet?

[BelizeBreeze]

based on Wisconsin Property Division laws, the loan is marital property. If you had filed for a legal separation when he left, then it would be considered separate property.

[nextwife]

Originally Posted by BelizeBreeze

based on Wisconsin Property Division laws, the loan is marital property. If you had filed for a legal separation when he left, then it would be considered separate property.

Breezy, I'm not so sure. A WI lender normally requires that the borrower EITHER declaire that they are single OR, if married, that the spouse join in on the loan. If a loan is to be treated as a marital expense, the loan must be done with BOTH spouses as signatories.

[whitelittle]

I wanted to file for divorce immediately, however he was in a very fragile mental state, so much so that he omitted himself into a hospital 2 times. He was afraid of his depression and what might happen and I didn't want to make the situation any worse, so I backed off and let him contact me to begin the proceedings. That's why I'm so upset because I wanted to file right away, but I was too afraid for him and now he's coming at me saying I owe $10,000 and his parent's can prove the loan in court, but again, I didn't have any part of it.

Thanks for your responses. I guess I'll have to find a good attorney with the little savings I have.

[Ohiogal]

Originally Posted by whitelittle

I wanted to file for divorce immediately, however he was in a very fragile mental state, so much so that he omitted himself into a hospital 2 times. He was afraid of his depression and what might happen and I didn't want to make the situation any worse, so I backed off and let him contact me to begin the proceedings. That's why I'm so upset because I wanted to file right away, but I was too afraid for him and now he's coming at me saying I owe $10,000 and his parent's can prove the loan in court, but again, I didn't have any part of it.

Thanks for your responses. I guess I'll have to find a good attorney with the little savings I have.

There are two issues here. His parents cannot state that you owe them 10k if you never signed on the loan. It may be a marital debt but that doesn't mean that YOU would be required to pay it. His parents would have to produce paperwork proving that you signed on the loan to hold you legally responsible for it. What a marital debt means is that if the marital debts are split equitably then you would be given an equitable amount in marital debt to pay on. Have you gotten any debt (credit cards or what not) in your name since you "separated"? A judge may see it as a marital debt but one that was incurred strictly for the benefit of one of you while you were living apart and not make you assume any responsibility for it. You owe 10k for him? Ummm.. no. It can't hurt your credit unless you signed for it. He owes the money and is trying to find a way to force you to pay. His parents may be able to prove the loan to him but that doesn't mean they will be able to prove that YOU owe them for it.

[BelizeBreeze]

Originally Posted by nextwife

Breezy, I'm not so sure. A WI lender normally requires that the borrower EITHER declaire that they are single OR, if married, that the spouse join in on the loan. If a loan is to be treated as a marital expense, the loan must be done with BOTH spouses as signatories.

It's not so complicated. The loan is marital debt based on the statutes as they are written because, (drumroll please) the couple was still married and not legally separated at the time of it's making.

How the court disposes of the debt is a matter of fact not forseeable here.

If, however, the couple had been LEGALLY Separated, then the debt would have been a non-marital debt assigned only to the maker.

[Ohiogal]

Originally Posted by nextwife

Breezy, I'm not so sure. A WI lender normally requires that the borrower EITHER declaire that they are single OR, if married, that the spouse join in on the loan. If a loan is to be treated as a marital expense, the loan must be done with BOTH spouses as signatories.

Actually if the loan is to be paid by BOTH parties it needs both signatures. Being a legal debt and a marital debt are two different things.

[Bali Hai]

Originally Posted by Ohiogal

Actually if the loan is to be paid by BOTH parties it needs both signatures.

I was responsible for half the credit card(s) debit (according to the court) that my ex had run up during the marriage. I had no knowledge of and did not sign a contract with any of these companies.

Being a legal debt and a marital debt are two different things.

I don't buy that. The court can make it any kind of debt it chooses.

Are you from Cleveland by any chance? I miss the Flats.

[LdiJ]

Originally Posted by Bali Hai

I don't buy that. The court can make it any kind of debt it chooses.

Are you from Cleveland by any chance? I miss the Flats.

The court can order debts that fall under the catagory of "marital debt" to be repaid however the court feels is "equitable", in an equitable distribution state.

However...this is a debt that is backed up by nothing more than the word of the PARENTS of one of the parties. Quite frankly, I think its unlikely that a court would order the OP to be responsible for this debt, unless it can be proven that the loan covered other, VALID, marital debt.

[Ohiogal]

Originally Posted by Bali Hai

I don't buy that. The court can make it any kind of debt it chooses.

Are you from Cleveland by any chance? I miss the Flats.

The court can decide that it is a marital debt and hold both parties legally responsible. HOwever that is different than anyone else holding both parties legally responsible. Meaning, if one party gets a bank loan during the marriage, the single party's signature does not hold the other party legally responsible for PAYMENT of said loan to the bank. The divorce court would find that it is a marital debt (made during the marriage) and may decide both parties are responsible for half of said loan HOWEVER the bank that made the loan cannot hold both parties liable to for it if only one party signed on it. That is where I was distinguishing between legal and marital debt. The court can make both parties responsible for the debt in the divorce settlement. My reason for bringing up her credit cards was as an example and then I didn't elaborate. If she has credit cards in her name only, ONLY SHE is responsible for paying the credit card company (only her credit would be affected and the bank couldn't go after her husband for them) however the court could find them as a marital debt.
Again there is a difference between types of debt.
And no, I am not from Cleveland -- about 45 minutes due south on 77. the Flats miss the the Flats at this point -- considering there is nothing left of them but a couple of strip clubs.

[Bali Hai]

Originally Posted by LdiJ

The court can order debts that fall under the catagory of "marital debt" to be repaid however the court feels is "equitable", in an equitable distribution state.

However...this is a debt that is backed up by nothing more than the word of the PARENTS of one of the parties. Quite frankly, I think its unlikely that a court would order the OP to be responsible for this debt, unless it can be proven that the loan covered other, VALID, marital debt.

Well then the court needs convincing by golly.

OP, how much money did your attorney's firm contribute to this judge getting elected???

[Bali Hai]

Originally Posted by Ohiogal

The court can decide that it is a marital debt and hold both parties legally responsible. HOwever that is different than anyone else holding both parties legally responsible. Meaning, if one party gets a bank loan during the marriage, the single party's signature does not hold the other party legally responsible for PAYMENT of said loan to the bank. The divorce court would find that it is a marital debt (made during the marriage) and may decide both parties are responsible for half of said loan HOWEVER the bank that made the loan cannot hold both parties liable to for it if only one party signed on it. That is where I was distinguishing between legal and marital debt. The court can make both parties responsible for the debt in the divorce settlement. My reason for bringing up her credit cards was as an example and then I didn't elaborate. If she has credit cards in her name only, ONLY SHE is responsible for paying the credit card company (only her credit would be affected and the bank couldn't go after her husband for them) however the court could find them as a marital debt.
Again there is a difference between types of debt.
And no, I am not from Cleveland -- about 45 minutes due south on 77. the Flats miss the the Flats at this point -- considering there is nothing left of them but a couple of strip clubs.

You must be near that wild game restaurant. Nice atmosphere in there.

There were a h@ll of alot more strip clubs in the Flats 25 years ago. Then they cleaned it up.

Had dinner there about 12 years ago and it was a great place.

Sad to hear it has slipped back into the hands of those evil doers.