Upcoming divorce date, financial concerns.

[chuxlaw]

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

I am currently being divorced by my wife in CT (it has not yet gone to court; the date is May 24). The agreement (which has been signed) stipulates that I "shall" quit claim the deed to our house to her, but only that she shall "make a good faith effort" to assume sole financial responsibility. Our mediator has told us that if this is unsuccessful, I have no legal protection from the lienholder should she default. Additionally, since she began proceedings, she has added new personal debt in the form of a new credit card, and a $20,000+ new car loan, this last after the agreement was signed, which agreement states she keeps her car, which then was a free-and-clear minivan, and I keep mine,also free-and-clear. It's my opinion, and that of people with whom I have consulted, that all this new debt runs counter to the aforementioned "good faith effort" (GFE). Also, in my reading of the agreement, I see no language stipulating precisely WHEN the GFE or my signing over the house must occur. I am ALSO pretty sure she used my income information to obtain all this credit, because even though she makes significantly more than I do, I still don't see all this being approved based on her income alone, not with a $235,000 home loan over her head.
So--here it is. A) Is she allowed, by law, to accrue significant new debt while in divorce proceedings? B) While in proceedings, is she still allowed by law to use my income info to obtain credit? And if so, I would presume that applies to me as well. C) Given these events, which make it much less likely, if not impossible, for her to assume all liability for the house, am I able to request, in court, that the judge modify the decree to the effect that I "shall quit claim, etc" ONLY in the event that she is successful in rewriting the loan, as she has enagaged in actions that any reasonable person would know would reduce the likelihood of that?
Thanks.

 

[TinkerBelleLuvr]

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

I am currently being divorced by my wife in CT (it has not yet gone to court; the date is May 24). The agreement (which has been signed) stipulates that I "shall" quit claim the deed to our house to her, but only that she shall "make a good faith effort" to assume sole financial responsibility. Our mediator has told us that if this is unsuccessful, I have no legal protection from the lienholder should she default. Additionally, since she began proceedings, she has added new personal debt in the form of a new credit card, and a $20,000+ new car loan, this last after the agreement was signed, which agreement states she keeps her car, which then was a free-and-clear minivan, and I keep mine,also free-and-clear. It's my opinion, and that of people with whom I have consulted, that all this new debt runs counter to the aforementioned "good faith effort" (GFE). Also, in my reading of the agreement, I see no language stipulating precisely WHEN the GFE or my signing over the house must occur. I am ALSO pretty sure she used my income information to obtain all this credit, because even though she makes significantly more than I do, I still don't see all this being approved based on her income alone, not with a $235,000 home loan over her head.
So--here it is. A) Is she allowed, by law, to accrue significant new debt while in divorce proceedings? B) While in proceedings, is she still allowed by law to use my income info to obtain credit? And if so, I would presume that applies to me as well. C) Given these events, which make it much less likely, if not impossible, for her to assume all liability for the house, am I able to request, in court, that the judge modify the decree to the effect that I "shall quit claim, etc" ONLY in the event that she is successful in rewriting the loan, as she has enagaged in actions that any reasonable person would know would reduce the likelihood of that?
Thanks.

First thing that comes to mind is, "Did you pull your credit report to see if any of them appear on YOUR credit report?"

You need to change it to doing a quit claim deed upon refinancing the loan out of your name. Otherwise, it is correct that you are obligated to the loan without having any property. Your divorce decree also should have a time frame for things to happen, otherwise, the house goes on the market with a previously agreed percentage of profit going to each party.

 

[Bali Hai]

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

I am currently being divorced by my wife in CT (it has not yet gone to court; the date is May 24). The agreement (which has been signed) stipulates that I "shall" quit claim the deed to our house to her, but only that she shall "make a good faith effort" to assume sole financial responsibility. Our mediator has told us that if this is unsuccessful, I have no legal protection from the lienholder should she default. Additionally, since she began proceedings, she has added new personal debt in the form of a new credit card, and a $20,000+ new car loan, this last after the agreement was signed, which agreement states she keeps her car, which then was a free-and-clear minivan, and I keep mine,also free-and-clear. It's my opinion, and that of people with whom I have consulted, that all this new debt runs counter to the aforementioned "good faith effort" (GFE). Also, in my reading of the agreement, I see no language stipulating precisely WHEN the GFE or my signing over the house must occur. I am ALSO pretty sure she used my income information to obtain all this credit, because even though she makes significantly more than I do, I still don't see all this being approved based on her income alone, not with a $235,000 home loan over her head.
So--here it is. A) Is she allowed, by law, to accrue significant new debt while in divorce proceedings? B) While in proceedings, is she still allowed by law to use my income info to obtain credit? And if so, I would presume that applies to me as well. C) Given these events, which make it much less likely, if not impossible, for her to assume all liability for the house, am I able to request, in court, that the judge modify the decree to the effect that I "shall quit claim, etc" ONLY in the event that she is successful in rewriting the loan, as she has enagaged in actions that any reasonable person would know would reduce the likelihood of that?
Thanks.

What does your lawyer say about all this? Why did you sign the agreement and start thinking about what you signed afterward?

How much and for how long are you receiving alimony?

 

[chuxlaw]

First thing that comes to mind is, "Did you pull your credit report to see if any of them appear on YOUR credit report?"

You need to change it to doing a quit claim deed upon refinancing the loan out of your name. Otherwise, it is correct that you are obligated to the loan without having any property. Your divorce decree also should have a time frame for things to happen, otherwise, the house goes on the market with a previously agreed percentage of profit going to each party.

OK, I was about to add an addendum here anyway. There are no plans to sell the house. She lives there now, with our boys half the time (I have them the othern half). Plus, it's all on family land, parents on one side, sister on the other. she's not going anyplace. Now, the addendum:
I neglected to mention that, although she, ostensibly, will remove me from liability (the decree will state that I have no responsibility for payments, but we all know that pretty much means squat), however, I have ten years of my life in that house, both fiscal and sweat equity, and am receiving no recompense for that. Does that sounds kosher to all here, or no?
As regards the credit report, my notion was that she simply presented our joint income as thought it was hers alone, but that's a good point. The car purchase was only this past Sarurday. Is it likely to show up this soon?

 

[chuxlaw]

What does your lawyer say about all this? Why did you sign the agreement and start thinking about what you signed afterward?

How much and for how long are you receiving alimony?

Hi, Hai. :-D

Don't have one. Neither one of us does; it's all been through a mediator, as I said in my post. And trust me, I thought about it--and brought it up--plenty before it was signed. But you know lawyers (apologies if you are one). She presented it as if it was the only option, and this is the only time in my life I've had to deal w/an attorney in any fashion. And I think you're presuming--as I have to imagine most would--that there's a lot of animosity here. There's not. We still get along pretty well, and neither of us wanted a lot of fuss and arguing. However, after discussion with some concerned parties, I've become more curious about possible options.
Oh, and no alimony, child support, or other transfer of wealth, from or to anybody. Scoff all you want. We're not like that.

 

[LdiJ]

OK, I was about to add an addendum here anyway. There are no plans to sell the house. She lives there now, with our boys half the time (I have them the othern half). Plus, it's all on family land, parents on one side, sister on the other. she's not going anyplace. Now, the addendum:
I neglected to mention that, although she, ostensibly, will remove me from liability (the decree will state that I have no responsibility for payments, but we all know that pretty much means squat), however, I have ten years of my life in that house, both fiscal and sweat equity, and am receiving no recompense for that. Does that sounds kosher to all here, or no?
As regards the credit report, my notion was that she simply presented our joint income as thought it was hers alone, but that's a good point. The car purchase was only this past Sarurday. Is it likely to show up this soon?

Ok...this is all information that belonged in your thread from the get go. Do you and she own the lot now, or did you simply build a house on land her family owned? Does the house have any equity apart from the land.

 

[chuxlaw]

Ok...this is all information that belonged in your thread from the get go. Do you and she own the lot now, or did you simply build a house on land her family owned? Does the house have any equity apart from the land.

Sorry, this is my first time having to ask anybody about stuff to do in regards to my divorce.
Lot was inherited from her grandfather, so was owned free and clear. HowEVER, it was leveraged in a refi. Has been paid on for 10 years or so, but is currently underwater like the rest of the market. Huh--actually, according to Zillow, it MAY be worth about $4000 more than we owe on it. Woohoo! :-|

 

[Ohiogal]

OK, I was about to add an addendum here anyway. There are no plans to sell the house. She lives there now, with our boys half the time (I have them the othern half). Plus, it's all on family land, parents on one side, sister on the other. she's not going anyplace. Now, the addendum:
I neglected to mention that, although she, ostensibly, will remove me from liability (the decree will state that I have no responsibility for payments, but we all know that pretty much means squat), however, I have ten years of my life in that house, both fiscal and sweat equity, and am receiving no recompense for that. Does that sounds kosher to all here, or no?
As regards the credit report, my notion was that she simply presented our joint income as thought it was hers alone, but that's a good point. The car purchase was only this past Sarurday. Is it likely to show up this soon?

YOu signed it.

 

[chuxlaw]

YOu signed it.

Um, yeah. And I'm here now for advice on my situation, being as this is the only divorce I've ever been involved in (and don't want to be, by the way). As no gavel has come down on it, I have to presume nothing's set in stone yet. If all you're going to do is make snide comments, I have no use for your input, thanks anyway.

 

[LdiJ]

Sorry, this is my first time having to ask anybody about stuff to do in regards to my divorce.
Lot was inherited from her grandfather, so was owned free and clear. HowEVER, it was leveraged in a refi. Has been paid on for 10 years or so, but is currently underwater like the rest of the market. Huh--actually, according to Zillow, it MAY be worth about $4000 more than we owe on it. Woohoo! :-|

Ok, then the home really does not have any equity therefore there would be nothing for you to receive. You may have put effort into the property but that effort did not generate any equity, therefore again, there is nothing for you to receive. If the home was sold you would still end up with zero, and might have to cough up some closing costs. Its also really appropriate that she is the one keeping the home since it stands on inherited family land.

 

[chuxlaw]

Ok, then the home really does not have any equity therefore there would be nothing for you to receive. You may have put effort into the property but that effort did not generate any equity, therefore again, there is nothing for you to receive. If the home was sold you would still end up with zero, and might have to cough up some closing costs. Its also really appropriate that she is the one keeping the home since it stands on inherited family land.

OK, thought it was something like that, but wanted to be sure. never said it was inappropriate. Just want my name off everything financial before I let go of my ownership, and open my credit up to all kinds of potential hell. But just as an FYI, the house wasn't there when we inherited. We built it after.

 

[LdiJ]

OK, thought it was something like that, but wanted to be sure. never said it was inappropriate. Just want my name off everything financial before I let go of my ownership, and open my credit up to all kinds of potential hell. But just as an FYI, the house wasn't there when we inherited. We built it after.

Its still inherited land, whether you built the house before or after.

 

[TinkerBelleLuvr]

I thought that you could rescind agreements in mediation? If so, then it would be appropriate to say that you'll quit claim deed upon refinancing. And that refinancing needs to take place in (fill in the blank). Otherwise your credit is tied up for many years.

 

[LdiJ]

I thought that you could rescind agreements in mediation? If so, then it would be appropriate to say that you'll quit claim deed upon refinancing. And that refinancing needs to take place in (fill in the blank). Otherwise your credit is tied up for many years.

The only problem with that is that it does not appear that there is enough equity in the house, at this time, to make any kind of refinance possible, unless his ex has cash to add at the closing table. Therefore its almost a no win situation. He can force a sale, but he would probably have to take cash to closing, or risk a short sale which would effect his credit.

OP, can your wife realistically afford to pay for the mortgage by herself? Is she responsible with money? If the answer to both of those questions is yes, you might want to agree to allow a few years to pass until she refinances, so that she will actually be able to do so. That would give some time for a little bit of equity to build, even if housing values don't increase.

 

[TinkerBelleLuvr]

So you make it like in the next 5 years. How long is the property mortgaged for? Is there verbiage to the effect that the STBX not damage your credit?