What happens if I can't meet the financial stipulations of the divorce decree?

[sarnold]

Background: Married 25 years. Divorced May 2011 in Kentucky. Currently living in Ohio. Ex-husband filed for divorce per my wishes. He hired a lawyer and we agreed on everything via separation agreement. At the time it looked pretty simple so I didn't hire a lawyer. The agreement was that the family home would be sold but until then we would each pay half the mortgage and half the small credit line. I had ran up significant credit card debt(for family living expenses) that I agreed to take on and half of a credit card in his name (crazy, I know). I moved out of house October 2010. Divorce was final May 2011. House has been for sale since July 2011. Since then, I have filed bankruptcy on my credit card debt and some medical expenses. I was able to keep my car (which is still jointly owned because I can't get refinanced) and the bankruptcy court didn't want to touch the house or the credit card bill I am paying to ex-husband. The bankruptcy won't be final until June 2012.

The house isn't going to sell. He is living in it and although he keeps it clean, it doesn't show well. We have bottomed out the price but there is still about $40,000 - $50,000 equity even giving it away. I just want out from under the mortgage payment and other debt I pay him monthly. He can't afford the house on his own. I can't afford to keep giving him a third of my paycheck. Do I have any options? Do I have to go back to county I was divorced in (where house is) to modify the agreement? Can it be modified? I don't know what to do. My bankruptcy lawyer doesn't really know what to do? Any suggestions?

 

[Ohiogal]

Background: Married 25 years. Divorced May 2011 in Kentucky. Currently living in Ohio. Ex-husband filed for divorce per my wishes. He hired a lawyer and we agreed on everything via separation agreement. At the time it looked pretty simple so I didn't hire a lawyer. The agreement was that the family home would be sold but until then we would each pay half the mortgage and half the small credit line. I had ran up significant credit card debt(for family living expenses) that I agreed to take on and half of a credit card in his name (crazy, I know). I moved out of house October 2010. Divorce was final May 2011. House has been for sale since July 2011. Since then, I have filed bankruptcy on my credit card debt and some medical expenses. I was able to keep my car (which is still jointly owned because I can't get refinanced) and the bankruptcy court didn't want to touch the house or the credit card bill I am paying to ex-husband. The bankruptcy won't be final until June 2012.

The house isn't going to sell. He is living in it and although he keeps it clean, it doesn't show well. We have bottomed out the price but there is still about $40,000 - $50,000 equity even giving it away. I just want out from under the mortgage payment and other debt I pay him monthly. He can't afford the house on his own. I can't afford to keep giving him a third of my paycheck. Do I have any options? Do I have to go back to county I was divorced in (where house is) to modify the agreement? Can it be modified? I don't know what to do. My bankruptcy lawyer doesn't really know what to do? Any suggestions?

You are not going to be able to modify the agreement because you don't want to do it anymore. You are going to have to keep paying until it does sell. Though you may be able to approach your ex about auctioning off the house. Andyou did not bottom out the price if there is still equity involved. Bottoming out the price to sell would mean a short sell with approval from the bank. If you cannot sell the house there is no value in that equity. If you can't sell or refinance the house then there really is no equity. Apparently you folks want a price for the house that the house isn't worth. You are going to have to lower the price again. You might be able to clarify in court the length of time the house should be on the market before an auction can be done. But the court is not going to decide you no longer have to pay half the mortgage just because you don't want to do so.

 

[OHRoadwarrior]

You have no equity if the house does not sell at the price you want. Keep dropping the price $10k, until it sells. You will find the market.