Marital Assets/Debt

[23elohim]

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

In my divorce decree it states that the family home was going to be sold to cover marital debt. However after it was sold there was not enough to cover all of the student loans. In addition my ex-wife was given a 35k instrument before the debt was settled. How should this be handled?

 

[mistoffolees]

Who gave your wife a $35 K instrument, when did she receive it, and what was it for? If she received it after the divorce was finalized

Who were the student loans for?

What was the exact wording of the decree with respect to the home proceeds?

 

[23elohim]

the instrument was purchased with the student loans; my ex had 70% of the loans. The judge awarded the instrument to her. It is further ordered and adjudged the the marital home located at said location should be sold and pay off the joint student debt.

 

[Ohiogal]

the instrument was purchased with the student loans; my ex had 70% of the loans. The judge awarded the instrument to her. It is further ordered and adjudged the the marital home located at said location should be sold and pay off the joint student debt.

If all the home proceeds went to the JOINT student debt and there still exists joint student debt then you need to back for a clarification of the order.

 

[mistoffolees]

If all the home proceeds went to the JOINT student debt and there still exists joint student debt then you need to back for a clarification of the order.

Agreed. The court is likely to order that the remaining debt be split 50:50, so I would plan on that as the starting point.

When you paid off part of the loans, how did you do it? Did you pay off all of one or did you split the payment 70:30? What is the remaining balance?

If it were me, I'd suggest to my ex that since 70% of the loans were hers, she pay 70% of the balance and I'd pay 30% of the balance. If she came back and suggested 50:50, I'd probably just pay it (unless there's a HUGE difference in earning potential). Unless the remaining debt is very high, they could easily spend a lot more on legal fees than it's worth.