Property Settlement 1999 - debt taken on by ex-husband now on me???

[momofrose]

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

Hi - I haven't been here in a while because (thankfully) I hadn't needed advise post divorce. Well now I do

In 1999 (September) - My divorce was finalized inclusive of property settlement and child custody.

In that property settlement all assets and liabilities were assigned (of course). Part of the property settlement was that my ex would take n the debt to his parents ($44,000.00). This amount included the money loaned to purchase the house as well as many many dollars when my ex (their son) was out of work. It CLEARLY states in the property settlement that "each party will assume and pay the respective debts and will indemnify the other party therefrom and hold the other party harmless therefrom, including reasonable counsel fees.

In December 1999 - my ex-in laws filed a judgement against their son and I for the monies owed. When this happened I asked my divorce attorney and she advised that she had spoken with my ex's attorney and this was being done to protect the monies they were due since my quit claim deed had not gone through yet (I signed over the house). A lien was placed. My ex sold the marital home in 2004 for about $200,000 in profit (good for him)

Flash forward this month. My husband and I try to refinance our home to save about $17,000 in interest when voila...this judgement pops up. It is noted as my ex's liability as being satisfied and under my name "still active".

I have retained an attorney who has reached out to both my ex father in law and my ex. The ex-father in law advised that he would not speak to my attorney but did mention that he "forgave" his son of that judgement". My ex will not speak to my attorney.

A letter demanding "motion to satisfy judgement" is going out today by the lawyer, but I assume they will NOT be compliant so back to court I go.

this seems clear cut to me, but I am not an attorney (obviously)... Does anyone know if I can be held liable for this debt that he was asssigned?

Thank you for your patience in reading this "saga"

 

[Ohiogal]

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

Hi - I haven't been here in a while because (thankfully) I hadn't needed advise post divorce. Well now I do

In 1999 (September) - My divorce was finalized inclusive of property settlement and child custody.

In that property settlement all assets and liabilities were assigned (of course). Part of the property settlement was that my ex would take n the debt to his parents ($44,000.00). This amount included the money loaned to purchase the house as well as many many dollars when my ex (their son) was out of work. It CLEARLY states in the property settlement that "each party will assume and pay the respective debts and will indemnify the other party therefrom and hold the other party harmless therefrom, including reasonable counsel fees.

In December 1999 - my ex-in laws filed a judgement against their son and I for the monies owed. When this happened I asked my divorce attorney and she advised that she had spoken with my ex's attorney and this was being done to protect the monies they were due since my quit claim deed had not gone through yet (I signed over the house). A lien was placed. My ex sold the marital home in 2004 for about $200,000 in profit (good for him)

Flash forward this month. My husband and I try to refinance our home to save about $17,000 in interest when voila...this judgement pops up. It is noted as my ex's liability as being satisfied and under my name "still active".

I have retained an attorney who has reached out to both my ex father in law and my ex. The ex-father in law advised that he would not speak to my attorney but did mention that he "forgave" his son of that judgement". My ex will not speak to my attorney.

A letter demanding "motion to satisfy judgement" is going out today by the lawyer, but I assume they will NOT be compliant so back to court I go.

this seems clear cut to me, but I am not an attorney (obviously)... Does anyone know if I can be held liable for this debt that he was asssigned?

Thank you for your patience in reading this "saga"

Your ex father in law was not a party to your divorce. The monies for the purchase of the home -- did you sign any loan paperwork for that? Did you attend the hearings in 1999 disputing this as your debt? If you didn't dispute it was your debt, then your ex father in law has a proper judgment that he can come against you to collect. YOUR defense is to bring your ex husband into it and have him indemnify you. So yes, you can be held liable for this debt but you can then pursue him for contempt and to make you whole.

 

[wavehopper27]

I assume that you and your ex held the debt jointly while married.

The problem you have is that credit company is not bound by your divorce decree and will pursue collection activities agains you both if the debt is not paid. You are just as responsible for the debt as he is.

 

[momofrose]

I did not attend the 1999 judgement hearing. I didn't because my divorce attorney advised it was not necessary - I NEVER should have listened.

My current attorney has advised that I now need to take my ex back to court (if the motion to satisfy judgement is not signed) for contempt of court and to have the court compel him to satisfy the judgement.

So if I am reading this correctly...this lien is on me legally, but then I have to sue my ex to place a lien on his property? Meanwhile our refinancing is on hold and we are losing almost $20,000.00. Can I sue him for damages?

 

[momofrose]

I assume that you and your ex held the debt jointly while married.

The problem you have is that credit company is not bound by your divorce decree and will pursue collection activities agains you both if the debt is not paid. You are just as responsible for the debt as he is.

How am I responsible if HE was ordered to take on this debt in the court ordered property settlement? His father "forgave" his son I am the only one with the outstanding judgement IN FULL. According to my attorney they planned this from the beginning. Skirted the system as it were...

 

[Zigner]

How am I responsible if HE was ordered to take on this debt in the court ordered property settlement? His father "forgave" his son I am the only one with the outstanding judgement IN FULL. According to my attorney they planned this from the beginning. Skirted the system as it were...

You are responsible to the people you made a contract with. Those people aren't bound by a judgment that they weren't a party to. Their recourse is against both you and your ex (jointly or separately, their choice.) Your recourse is against your ex.

 

[wavehopper27]

How am I responsible if HE was ordered to take on this debt in the court ordered property settlement? His father "forgave" his son I am the only one with the outstanding judgement IN FULL. According to my attorney they planned this from the beginning. Skirted the system as it were...

His father is not a party to your divorce decree. He is not bound by your agreement with your ex to relieve you of your responsibilty for the debt. Your only recourse is to ask the court to force your ex's compliance.

 

[momofrose]

His father is not a party to your divorce decree. He is not bound by your agreement with your ex to relieve you of your responsibilty for the debt. Your only recourse is to ask the court to force your ex's compliance.

Thank you - I guess that's the way it has to be...so sad that almost 16 years later, the bitterness still continues...If we do lose the refinancing because of this, can I sue my ex for damages?

 

[Zigner]

Thank you - I guess that's the way it has to be...so sad that almost 16 years later, the bitterness still continues...If we do lose the refinancing because of this, can I sue my ex for damages?

This is something that you've had 15 years to correct. At this point, your damages are on you.

 

[momofrose]

This is something that you've had 15 years to correct. At this point, your damages are on you.

What??? I had NO idea this judgement was still active...since my ex took on the debt, I assumed when he sold the house the lien was satisfied (since a lien was placed). There is nothing on my credit report about this. it was only when the title company searched previous names that it even showed up. Thankfully my attorney has a different view on this - WOW!

 

[Zigner]

What??? I had NO idea this judgement was still active...since my ex took on the debt, I assumed when he sold the house the lien was satisfied (since a lien was placed). There is nothing on my credit report about this. it was only when the title company searched previous names that it even showed up. Thankfully my attorney has a different view on this - WOW!

I believe that you didn't know. I also believe that you reasonably could and should have known. I stand by my prior statement. You have had 15 years to deal with this.

 

[momofrose]

I believe that you didn't know. I also believe that you reasonably could and should have known. I stand by my prior statement. You have had 15 years to deal with this.

Thankfully my attorney disagrees with you...Not sure I "should" have known and I didn't think I had to "deal with" something that was a court ordered liability against my ex.

Thanks for the "advice"...hopefully the court will see this differently than you do.

 

[Zigner]

Thankfully my attorney disagrees with you...Not sure I "should" have known and I didn't think I had to "deal with" something that was a court ordered liability against my ex.

Thanks for the "advice"...hopefully the court will see this differently than you do.

Your attorney is telling you that your ex is responsible for the "damages" (of which you currently have none) that might be caused by something that you had 15 years to deal with?

Your attorney is telling you that you had no duty to ensure a judgment against you was properly dealt with at some time in the last 15 years?

Really?

 

[wavehopper27]

Can you sue him for damages? Yes.

Will you be awared damages? Not likely.

 

[momofrose]

Your attorney is telling you that your ex is responsible for the "damages" (of which you currently have none) that might be caused by something that you had 15 years to deal with?

Your attorney is telling you that you had no duty to ensure a judgment against you was properly dealt with at some time in the last 15 years?

Really?

Yes - my attorney advised that if the Motion to Satisfy judgement is not signed, AND we have to take it to court that I will seek council fees and (if our refinancing falls through because of it) - damages in that amount.