How would bankruptcy effect this divorce?

[fd1000]

My wife and I have been married for 2.5 years.

We were together for 6 years before that.

The house mortgage is in my name only, it was bought before we became married (3 years ago was the purchase).

Her name, and my name, are listed on the title (I put her in there 2.5 years ago).

We have two cars, both of them are in her name, they were also bought before the marriage.

The house is worth about what we owe, plus I can't sell for 6 more months because of a first time home buyer credit I received (u have to stay 3 years).

Both cars are worth less than what is owed.

There are two credit cards, totaling around $25,000, both in her name, I was at one point on one of the credit cards, but we requested my name be removed from the account, which the card company did, and I was able to complete a home refinance recently (they had asked my name not be on it, it was messing up my credit score).

We have no other assets, no money, jewelry, IRAs, investments, properties, nothing.

I make about 99k, she is not employed.

If we got divorced, could she go bankrupt? Would I be hit with any of the credit cards? What would happen to the cars? I am happy to continue paying for both of them, or to at least help her pay for the one she drives, and pay for mine, but would it be better to let the bank have both of them back, have her go bankrupt? I could probably get another car myself, I don't know how she would get one, unless I try to buy two cars at once, and give her one before we divorce.

Thanks.

 

[Ohiogal]

My wife and I have been married for 2.5 years.

We were together for 6 years before that.

The house mortgage is in my name only, it was bought before we became married (3 years ago was the purchase).

Her name, and my name, are listed on the title (I put her in there 2.5 years ago).

So you are both joint owners. But only you are responsible for the mortgage.

We have two cars, both of them are in her name, they were also bought before the marriage.

They were paid for DURING the marriage right? How did she buy them BEFORE the marriage -- was she working? If so, what was she doing?

The house is worth about what we owe, plus I can't sell for 6 more months because of a first time home buyer credit I received (u have to stay 3 years).

Both cars are worth less than what is owed.

Whose name are the loans on for the car?

There are two credit cards, totaling around $25,000, both in her name, I was at one point on one of the credit cards, but we requested my name be removed from the account, which the card company did, and I was able to complete a home refinance recently (they had asked my name not be on it, it was messing up my credit score).

Question -- when was the debt accrued? If during the marriage, then it is marital debt.

We have no other assets, no money, jewelry, IRAs, investments, properties, nothing.

I make about 99k, she is not employed.

How long has she not been employed? You may find yourself paying spousal support for an extremely short period of time -- think 6 months.

If we got divorced, could she go bankrupt?

Maybe.

Would I be hit with any of the credit cards?

Maybe.

What would happen to the cars? I am happy to continue paying for both of them, or to at least help her pay for the one she drives, and pay for mine, but would it be better to let the bank have both of them back, have her go bankrupt?

Have HER go bankrupt? Is she considering it? Does she know you are thinking about divorcing her?

I could probably get another car myself, I don't know how she would get one, unless I try to buy two cars at once, and give her one before we divorce.

Thanks.

Answer my questions.

 

[fd1000]

They were paid for DURING the marriage right? How did she buy them BEFORE the marriage -- was she working? If so, what was she doing?

She was not working. I paid for them both, from the first day. Then we got married approximately 9 months later.

Whose name are the loans on for the car?

Both cars are in her name.

Question -- when was the debt accrued? If during the marriage, then it is marital debt.

The debt on the credit cards was accrued during the marriage.

How long has she not been employed? You may find yourself paying spousal support for an extremely short period of time -- think 6 months.

About 1.5 years ago, she got a full time job, (the first job she has had in maybe 5 years), but then quit 8 months ago. The quitting was not something I supported, we had debt to pay off, and her working was going to be the only way to accomplish that.

Have HER go bankrupt? Is she considering it? Does she know you are thinking about divorcing her?

We have jokingly mentioned that it would be the best financial option, to get divorced just so she could go bankrupt. I cannot make her do anything, she is not aware yet that I am ready for a divorce, however it would not be a large surprise. There is no fighting, infidelity, drugs, abuse, or anything like that. However before I broach the subject of divorce with her, I want to have a plan in place for both of us. Despite wanting to be divorced, I still care about her financial situation, and am not interested in leaving her broke and unable to take care of herself. If after a divorce, bankruptcy on her side is the best way, then I would like to know that. In particular how it would effect the credit cards, and the cars (all in her name). I don't want to get into the full discussion and have it be filled with 'I don't knows'. The biggest issue would be financial, I myself cannot pay for a mortgage, two cars, AND an apartment. If a divorce would change that formula, perhaps financially it is possible, without tearing up our current house. I don't care, I just don't want our two children having to endure the liquidation of our current house, other than 50/50 custody with their mother, and one of us living in another dwelling.

Thank you again for the previous answers and your time!

 

[nextwife]

Dont you just love people being voluntarilly unemployed when they owe a whole mess of creditors money? Bankruptcy, or failing to repay the borrowers as promised, should not be used when someone runs up cards etc then CHOOSES to just not work. Sorry, I deal with bankruptcy, and steam comes out of my ears every time I see another bankruptcy as the preferred option over working and paying back what was promised. Sure, people have life crises that sometimes cause bankruptcy, but too often it's like her situation: I wanted to spend the money, I just don't wish to work to pay them back.

Really, why SHOULD these creditors end up having to write off this obligation just because she chooses to be voluntarilly unemployed?

 

[Ohiogal]

She was not working. I paid for them both, from the first day. Then we got married approximately 9 months later.

How did she get loans on TWO CARS when she was not working?

Both cars are in her name.

How did she qualify for not one but TWO car loans?

The debt on the credit cards was accrued during the marriage.

Marital debt.

About 1.5 years ago, she got a full time job, (the first job she has had in maybe 5 years), but then quit 8 months ago. The quitting was not something I supported, we had debt to pay off, and her working was going to be the only way to accomplish that.

Not getting into debt -- at least not 25k in credit card debt -- would have been another choice.

We have jokingly mentioned that it would be the best financial option, to get divorced just so she could go bankrupt. I cannot make her do anything, she is not aware yet that I am ready for a divorce, however it would not be a large surprise.

So you want to open the conversation: Honey, I want a divorce and you should declare bankruptcy in order to not have us pay off anything. Okay? See ya.

There is no fighting, infidelity, drugs, abuse, or anything like that. However before I broach the subject of divorce with her, I want to have a plan in place for both of us.

YOU want to have a plan in place for BOTH of you? What if she doesn't agree with YOUR plan?

Despite wanting to be divorced, I still care about her financial situation, and am not interested in leaving her broke and unable to take care of herself.

Spousal support -- be prepared to pay some for a while.

If after a divorce, bankruptcy on her side is the best way, then I would like to know that. In particular how it would effect the credit cards, and the cars (all in her name).

How did she get credit cards in her name WITHOUT any income?

I don't want to get into the full discussion and have it be filled with 'I don't knows'. The biggest issue would be financial, I myself cannot pay for a mortgage, two cars, AND an apartment.

Oh okay. Hope you can afford spousal support.

If a divorce would change that formula, perhaps financially it is possible, without tearing up our current house. I don't care, I just don't want our two children having to endure the liquidation of our current house, other than 50/50 custody with their mother, and one of us living in another dwelling.

Sucks but guess what -- you may end up selling the house.

 

[Ohiogal]

Dont you just love people being voluntarilly unemployed when they owe a whole mess of creditors money? Bankruptcy, or failing to repay the borrowers as promised, should not be used when someone runs up cards etc then CHOOSES to just not work. Sorry, I deal with bankruptcy, and steam comes out of my ears every time I see another bankruptcy as the preferred option over working and paying back what was promised. Sure, people have life crises that sometimes cause bankruptcy, but too often it's like her situation: I wanted to spend the money, I just don't wish to work to pay them back.

Really, why SHOULD these creditors end up having to write off this obligation just because she chooses to be voluntarilly unemployed?

I find it more interesting that OP believes he can plan all this out and then spring it on his wife with the idea of -- oh I want a divorce and you can go bankrupt so we don't have to pay anything back hence screwing your credit so you can never own anything BUT I will keep the house.

 

[fd1000]

Wow, you people love to assume first and figure it out later don't you?

It was her decision to quit her job, because she didn't 'like' doing tech support. I have been working myself into the ground trying to keep us above water, and what does she do? She plays 536 hours of world of warcraft in a 10 week span, and thats just the time I have documented, shes been playing for years. Ya that's right, that works out to about 8 hours a day, a perfect 7 day a week job. One problem, she isnt getting paid for it! Did I mention she has gained 100lbs in the last 5 years? That she forgets appointments for the kids, hardly cleans, no sex in over a year, doenst take care of herself at all, sleeps all day, do I need to go on? Sure im not perfect, but I am good at my job, my kids adore me, I always come home right after work, I vacuum and steam clean , never go out with the guys, dont drink beer, again... do I need to go on? SURE, stay, go ahead, be miserable, in debt... SURE, stay and wonder why your 5 year old asks why you and mommy dont kiss... yeah its heaven, or a heart attack waiting to happen. Now, try hard to not be the one who is lured into playing the other side just because it is there... 2+2=4 right? Sky is blue right? Gonna argue with me? Ya.

You would think, this being a forum about divorce, that it would be UNDERSTOOD that in no way would you have all the facts about a relationship, or peoples intentions, because of one post.

Shame on you.

 

[Ohiogal]

OP. You don't like what you were told? Not my problem. Here is the thing -- you may find that YOUR plans are not going to work because you seem to believe she will just go with them. Nothing I said was out of line or improper and the questions I asked were important. Notice you ignored answering them when you went on your cursing rant.