Unable to pay marital settlment

[survivor223]

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

I inherited a business while married to my ex-husband. We divorced about 3 and half years ago and I agreed to pay him a large sum of money to be paid out over time. Since that time, I borrowed money from a bank to buy out my business partner. Soon after, the financial markets crashed and I am in the financial business. The value of my house is down and I can't sell it. I have been trying to make payments to my ex as best as possible. I am in the financial industry and to be in compliance with all the agencies that dictate the capital required in my business and the bank to whom I owe, I cannot keep up with the terms of the settlement agreement.

Is there any chance that I can go back and amend settlement agreement, to at least change the terms of the payout?

Also, can he file a judgment against me and if so what are the ramifications?

 

[Proserpina]

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

I inherited a business while married to my ex-husband. We divorced about 3 and half years ago and I agreed to pay him a large sum of money to be paid out over time. Since that time, I borrowed money from a bank to buy out my business partner. Soon after, the financial markets crashed and I am in the financial business. The value of my house is down and I can't sell it. I have been trying to make payments to my ex as best as possible. I am in the financial industry and to be in compliance with all the agencies that dictate the capital required in my business and the bank to whom I owe, I cannot keep up with the terms of the settlement agreement.

Is there any chance that I can go back and amend settlement agreement, to at least change the terms of the payout?

Also, can he file a judgment against me and if so what are the ramifications?

Your order should indicate whether or not it can be modified - what does it actually say?

(the simple answer is yes - he can take legal action against you)

 

[mistoffolees]

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

I inherited a business while married to my ex-husband. We divorced about 3 and half years ago and I agreed to pay him a large sum of money to be paid out over time. Since that time, I borrowed money from a bank to buy out my business partner. Soon after, the financial markets crashed and I am in the financial business. The value of my house is down and I can't sell it. I have been trying to make payments to my ex as best as possible. I am in the financial industry and to be in compliance with all the agencies that dictate the capital required in my business and the bank to whom I owe, I cannot keep up with the terms of the settlement agreement.

Is there any chance that I can go back and amend settlement agreement, to at least change the terms of the payout?

Also, can he file a judgment against me and if so what are the ramifications?

You'd better get yourself to an attorney ASAP and also try to work out a deal with your ex.

You should not have had to pay anything to keep an inherited business unless you put marital money into the business.

This debt is no different than any other debt. If he chooses, he can initiate legal action against you for non-payment and obtain a court order seizing assets.

 

[Bali Hai]

You'd better get yourself to an attorney ASAP and also try to work out a deal with your ex.

You should not have had to pay anything to keep an inherited business unless you put marital money into the business.

That issue was decided three years ago.

This debt is no different than any other debt. If he chooses, he can initiate legal action against you for non-payment and obtain a court order seizing assets.

She owes the money and must pay up just like any man would be required to pay.

I don't see a modification to her divorce agreement happening at all.

 

[mistoffolees]

She owes the money and must pay up just like any man would be required to pay..

I agree. I'm just pointing out that she apparently got bad advice 3 years ago.

My next statement was that it is a debt like any other debt - which needs to be paid.

However, since her ex shouldn't have been entitled to any of the business, anyway, and given the market drop, she could always try asking for a voluntary reduction from him. He's not obligated to do so, but she might be able to work something out. If she does, though, she needs to get the agreement back to the court to be approved.

 

[survivor223]

I am not trying to get out of paying him. I just cannot afford to pay him 25,000 per month. I was hoping that a judge may allow me to modify the agreement to change the annual/monthly payment schedule not the full amount owed. If I am out of business, I won't be able to pay him at all because I would not have sufficient income or assets to pay that kind of debt.

 

[Bali Hai]

I am not trying to get out of paying him. I just cannot afford to pay him 25,000 per month. I was hoping that a judge may allow me to modify the agreement to change the annual/monthly payment schedule not the full amount owed. If I am out of business, I won't be able to pay him at all because I would not have sufficient income or assets to pay that kind of debt.

As Misto said, your best option would be to work something out with your ex.

Changing what you agreed to three years ago must be presented in a way that your ex will agree to it. That usually would mean more money over a longer duration and approved by the court.

If this isn't possible, you will be possibly held in contempt of court, pay his attorney fees, pay the balance owed and arrearages with interest.

 

[LdiJ]

As Misto said, your best option would be to work something out with your ex.

Changing what you agreed to three years ago must be presented in a way that your ex will agree to it. That usually would mean more money over a longer duration and approved by the court.

If this isn't possible, you will be possibly held in contempt of court, pay his attorney fees, pay the balance owed and arrearages with interest.

Oh BS Bali. Clearly her business cannot support the payments at this time, and its quite possible that a judge would agree that they should be restructured (particularly since she is not asking to reduce the total). Her business has statutory capital requirements and a judge would have to take note of that.

He never should have been allowed a share of the business at all, and wouldn't have gotten a share if she had competent legal assistance when she divorced.

Therefore, she doesn't necessarily need her ex's agreement to get something changed, and she certainly doesn't have to sweeten the pot to offer more.

However, I don't necessarily buy this whole thread at all anymore, now that I know the monthly payment amount.

Anyone with a business worth enough that the monthly payments would be 25k a month, would have had competent legal advice.

 

[Bali Hai]

Oh BS Bali. Clearly her business cannot support the payments at this time, and its quite possible that a judge would agree that they should be restructured (particularly since she is not asking to reduce the total). Her business has statutory capital requirements and a judge would have to take note of that.

He never should have been allowed a share of the business at all, and wouldn't have gotten a share if she had competent legal assistance when she divorced.

Therefore, she doesn't necessarily need her ex's agreement to get something changed, and she certainly doesn't have to sweeten the pot to offer more.

Yes you're right LD.

How stupid of me to forget that OP is a woman. Only men are expected to live up to their divorce agreements no matter what the circumstances.

 

[LdiJ]

Yes you're right LD.

How stupid of me to forget that OP is a woman. Only men are expected to live up to their divorce agreements no matter what the circumstances.

The gender here is irrelevant. The same advice would be being given no matter the gender.

However, as I added to my other post, I no longer really buy this story at all.

 

[survivor223]

Thank you for the replies and I will go back to my attorney. I was told by a lawyer at the time of the divorce that my spouse would be entitled to half the appreciation of the business and real estate owned from the time I inherited the business. So at the time, when the values were higher I agreed to a large settlement. Since then, everything has changed and since I was up late last night, unable to sleep I found the site and posted by question. Anyway, your replies are appreciated even if no one buys my story.

 

[Bali Hai]

Thank you for the replies and I will go back to my attorney. I was told by a lawyer at the time of the divorce that my spouse would be entitled to half the appreciation of the business and real estate owned from the time I inherited the business. So at the time, when the values were higher I agreed to a large settlement. Since then, everything has changed and since I was up late last night, unable to sleep I found the site and posted by question. Anyway, your replies are appreciated even if no one buys my story.

Since you had competent legal advice when you agreed, you should be held to that agreement just as any man would.

LD's comment that the same advice would be given to either gender is not consistent with previous advice given to males.

Something along the lines that you should sell the business to pay the remaining debt rings a bell. If that doesn't cover your debt sufficiently, you can get a job or two to pay the remaining balance.

Jail is also a possibility.