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Divorce and mortgage and leases

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avalon14

Guest
What is the name of your state? Pennsylvania

My wife and I are planning a divorce. She works under the table and is classified as not having a job. We both went through a bankruptcy awhile back so our credit is not good. She wants me to keep my name on the mortgage for 10 years with a clause attached that says I'm not responsible if she defaults. How safe is this? Does this sound fair? I told her she could keep the house but I would not want my name involved. The same goes for her car which is leased under my name. She wants me to keep my name on the lease because she wouldn't be able to get a car either. What are the cons to this?
 


stealth2

stealth2

Under the Radar Member
As long as your name is on the loan, the creditor can go after you. Your recourse then would be to sue her for the money you had to shell out. Bad idea.
 
LdiJ

LdiJ

Senior Member
avalon14 said:
What is the name of your state? Pennsylvania

My wife and I are planning a divorce. She works under the table and is classified as not having a job. We both went through a bankruptcy awhile back so our credit is not good. She wants me to keep my name on the mortgage for 10 years with a clause attached that says I'm not responsible if she defaults. How safe is this? Does this sound fair? I told her she could keep the house but I would not want my name involved. The same goes for her car which is leased under my name. She wants me to keep my name on the lease because she wouldn't be able to get a car either. What are the cons to this?
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It isn't a good idea as the other poster told you. I will tell you though that as far as the car is concerned you probably will have no choice but to remain on the lease. The finance company isn't going to let you off the hook for that if she can't refinance in her own name.

It may be necessary for the two of you to sell the house.
 
H

HomeGuru

Senior Member
avalon14 said:
What is the name of your state? Pennsylvania

My wife and I are planning a divorce. She works under the table and is classified as not having a job. We both went through a bankruptcy awhile back so our credit is not good. She wants me to keep my name on the mortgage for 10 years with a clause attached that says I'm not responsible if she defaults. How safe is this? Does this sound fair? I told her she could keep the house but I would not want my name involved. The same goes for her car which is leased under my name. She wants me to keep my name on the lease because she wouldn't be able to get a car either. What are the cons to this?
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**A: make sure that you remove your name from the house, car etc. as a condition after the divorce. It is time she becomes "legal" with employment.
 
A

annefan

Member
LdiJ said:
It isn't a good idea as the other poster told you. I will tell you though that as far as the car is concerned you probably will have no choice but to remain on the lease.
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Bad idea here too. The ex won't be able to legally insure the vehicle if it's held in possession of another, especially in divorce.
 
LdiJ

LdiJ

Senior Member
annefan said:
Bad idea here too. The ex won't be able to legally insure the vehicle if it's held in possession of another, especially in divorce.
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Well, that is assuming that the ex's name is not also on the lease....which isn't very likely. The problem with car leases is that you can't just turn the car back in without financial penalties....rather hefty ones. So he is more or less stuck with remaining on the lease.

With a house, or a car that is being purchased, if a refi isn't possible the solution is to sell.

With a lease (for either a home or a car) that option isn't available and its really not possible for either party to remove their name.
 
A

annefan

Member
avalon14 said:
What is the name of your state? Pennsylvania

The same goes for her car which is leased under my name. She wants me to keep my name on the lease because she wouldn't be able to get a car either. What are the cons to this?
Click to expand...

All well and good LdiJ, except that what you posted IS NOT the case. My advice was correct.
 
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