dividing debt

[CIA]

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

I requested in the decree that the 3 loans we have, the balance be split 50/50

loan 1 balance $5, 500

loan 2 balance $8,300

loan 3 balance $4,000

If i paid off my share of each loan, can the bank still refuse to remove my name from the loan?

 

[LdiJ]

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

I requested in the decree that the 3 loans we have, the balance be split 50/50

loan 1 balance $5, 500

loan 2 balance $8,300

loan 3 balance $4,000

If i paid off my share of each loan, can the bank still refuse to remove my name from the loan?

Yes, absolutely. The bank is not a party to your divorce and is not bound by your divorce decree. Your bank is obligated and you are obligated to the loan agreement that you signed.

If you have paid your share, you might insist to your ex that he/she refinance the debt into their own name, or petition the court to order your ex to refinance the debt into his/her own name.

 

[CIA]

petition the court to order your ex to refinance the debt into his/her own name.

this might sound an easier option. Can I state this in the decree?

 

[Zigner]

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

I requested in the decree that the 3 loans we have, the balance be split 50/50

loan 1 balance $5, 500

loan 2 balance $8,300

loan 3 balance $4,000

If i paid off my share of each loan, can the bank still refuse to remove my name from the loan?

Yes, absolutely. The bank is not a party to your divorce. Your contract with the bank is totally separate.

ETA: I swear that I didn't see LdiJ's post before I made mine...

 

[Zigner]

this might sound an easier option. Can I state this in the decree?

If you do and if she doesn't, then what?

 

[CIA]

Yes, absolutely. The bank is not a party to your divorce. Your contract with the bank is totally separate.

ETA: I swear that I didn't see LdiJ's post before I made mine...

Ok. Is it worth me contacting each of the creditors on what happens if i paid my share of the balance of the loan and if they are willing to remove my name from the loan?

 

[CIA]

If you do and if she doesn't, then what?

then i guess pay his portion then later sue him?

 

[Zigner]

Ok. Is it worth me contacting each of the creditors on what happens if i paid my share of the balance of the loan and if they are willing to remove my name from the loan?

It can't hurt to ask, but it ain't gonna happen. There is no "share" of the loan - you are 100% responsible, just as she is. The lender has no incentive to remove your name. Furthermore, it could actually be seen as a breach of their fiduciary duty to remove you from the loan, as it lessens the chances of recovering the money. Finally, they KNOW you have the money, why take your name off?

 

[Zigner]

then i guess pay his portion then later sue him?

You don't get to go back and sue...the proper forum would be the court that issued the order. In other words, if she's ordered to pay and she doesn't pay, then you go back to the divorce court and file a contempt motion.

 

[LdiJ]

Ok. Is it worth me contacting each of the creditors on what happens if i paid my share of the balance of the loan and if they are willing to remove my name from the loan?

No, because none of them will be willing to do so. They want/need both of you on the hook for the loan.

 

[CIA]

You don't get to go back and sue...the proper forum would be the court that issued the order. In other words, if she's ordered to pay and she doesn't pay, then you go back to the divorce court and file a contempt motion.

what will contempt motion do exactly?

 

[LdiJ]

what will contempt motion do exactly?

If she does not honor the court order a motion for contempt would ask the judge to find he in contempt and punish her for not complying. Sanctions could be a light as a scolding and a threat of further punishment unless she complies, or as heavy as some jail time.

 

[AlmostThere]

Yes, absolutely. The bank is not a party to your divorce and is not bound by your divorce decree. Your bank is obligated and you are obligated to the loan agreement that you signed.

If you have paid your share, you might insist to your ex that he/she refinance the debt into their own name, or petition the court to order your ex to refinance the debt into his/her own name.

You might be better off taking full responsibility for the loans, and taking additional assets equal to to his/her share of the loans. That will protect your credit the damage that comes if s/he does not pay her share.

Dividing up assets and debts does not have to mean each person gets half of each thing. You can divvy it up such that the end results of assets less liabilities is about equal for each party.

AlmostThere

 

[LdiJ]

You might be better off taking full responsibility for the loans, and taking additional assets equal to to his/her share of the loans. That will protect your credit the damage that comes if s/he does not pay her share.

Dividing up assets and debts does not have to mean each person gets half of each thing. You can divvy it up such that the end results of assets less liabilities is about equal for each party.

AlmostThere

That can work well if there are enough assets to do that. When my ex and I divorced I kept all of our debt and kept all of our savings as well. (they were roughly the same amount). My ex was ok with that since he knew I would protect our credit better than he would.

 

[Zigner]

That can work well if there are enough assets to do that. When my ex and I divorced I kept all of our debt and kept all of our savings as well. (they were roughly the same amount). My ex was ok with that since he knew I would protect our credit better than he would.

If you took "all" of the debt, and if your savings covered it all, then why are we here?