Division of debt

Any debt accrued during marriage is considered marital debt and is the responsibility of both parties. Normally, the debt is divided how you stated with each party paying their own debts and the mutual debt divided, but your credit is tied together. Being married for that length of time, any debt that is not paid for will go against both of you. I suggest, if you don’t already have one, that you get a separation agreement detailing these debts and the responsibility. And also keep records of your payments towards the debts to date.

All of the debt incurred during the marriage is marital debt and when your estate is divided generally it will be divided equally and you will each receive half, taking into account the debt that each of you are paying. Sometimes this is done by dividing each debt in half and sometimes this is done by shifting more property to the person paying more debt. So the answer is, ultimately this debt will be accounted for when your marital estate is divided.

If your name is not on the credit card, the creditor will not come after you for payments or report a non-payment to your credit card.

P.S. Please feel free to bring up this or any other topic on our live call-in show every Wednesday at 11:00 a.m. EST. Visit radio.rosen.com for details

Helena M. Nevicosi
Attorney with Rosen Law Firm

4101 Lake Boone Trail, Suite 500
Raleigh, North Carolina 27607
919.787.6668 main phone
919.787.6361 main fax

Charlotte Office
301 McCullough Drive
Suite 510
Charlotte, NC 28262
Main Phone: (704)307.4600
Main Fax: (704) 9343.0044

Sutton Station
5826 Fayetteville Rd. Suite 205
Durham, NC 27713
Phone: (919) 321-0780

The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service only, a full discussion with an attorney should be undertaken before taking any action. The information posted on this forum is available for public viewing and is not intended to create an attorney client relationship with any individual. These answers are provided for informational purposes only, a person should consult with their own individual legal counsel before taking any action that could affect their legal rights or obligations.

What happens in ED when one spouse takes on 1/2 the debt after separation and liquidates it prior to divorce? Will they be credited for that debt or will they be required to split the remaining marital debt?

They will be given credit for the debt paid and should keep good records about any payments that have been made.

P.S. Please feel free to bring up this or any other topic on our live call-in show every Wednesday at 11:00 a.m. EST. Visit radio.rosen.com for details

Helena M. Nevicosi
Attorney with Rosen Law Firm

4101 Lake Boone Trail, Suite 500
Raleigh, North Carolina 27607
919.787.6668 main phone
919.787.6361 main fax

Charlotte Office
301 McCullough Drive
Suite 510
Charlotte, NC 28262
Main Phone: (704)307.4600
Main Fax: (704) 9343.0044

Sutton Station
5826 Fayetteville Rd. Suite 205
Durham, NC 27713
Phone: (919) 321-0780

The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service only, a full discussion with an attorney should be undertaken before taking any action. The information posted on this forum is available for public viewing and is not intended to create an attorney client relationship with any individual. These answers are provided for informational purposes only, a person should consult with their own individual legal counsel before taking any action that could affect their legal rights or obligations.

Thanks so much! That’s a relief!!

quote:
[i]Originally posted by Helena Nevicosi[/i] [br]They will be given credit for the debt paid and should keep good records about any payments that have been made.

Thanks for the info, everyone. I have an appt with my atty in a few days to confirm what I’ve found out here.

Thanks again!
Dave

Best of luck.

P.S. Please feel free to bring up this or any other topic on our live call-in show every Wednesday at 11:00 a.m. EST. Visit radio.rosen.com for details

Helena M. Nevicosi
Attorney with Rosen Law Firm

4101 Lake Boone Trail, Suite 500
Raleigh, North Carolina 27607
919.787.6668 main phone
919.787.6361 main fax

Charlotte Office
301 McCullough Drive
Suite 510
Charlotte, NC 28262
Main Phone: (704)307.4600
Main Fax: (704) 9343.0044

Sutton Station
5826 Fayetteville Rd. Suite 205
Durham, NC 27713
Phone: (919) 321-0780

The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service only, a full discussion with an attorney should be undertaken before taking any action. The information posted on this forum is available for public viewing and is not intended to create an attorney client relationship with any individual. These answers are provided for informational purposes only, a person should consult with their own individual legal counsel before taking any action that could affect their legal rights or obligations.

Dave1961 above is my stbx. Basically we had a verbal agreement. He draws the military housing allowance WITH dependents (no dependent children) and chose to stay in the home and agreed to pay for it. His total he pays me for “mutual” debt is $75 a month. I pay the entire vehicle repo payment. Of all the remaining debt that is currently left (besides the house) I gave him one larger credit card and one smaller credit card totaling about $13000 or so. Everything else he sold or shut off (phone,etc). I took on the remaining $42,000 worth of debt. He now pays out less monthly than I do. I can’t afford to get my own place. He takes home a little more than me (if I quit my 2nd almost fulltime job). Now he put the house up for sale but is trying to come after me to take half the mortgage, although he agreed to take it, it is his to live in, and he draws a full housing allowance. I cannot afford to take on any more debt at this time. Any suggestions? would I have to pay half this mortgage, and if so, would I be alloted any of his housing allowance?

It is probably best if both you consult individual counsel who can go over all the issues with you and give advise based on your complete financial picture.

P.S. Please feel free to bring up this or any other topic on our live call-in show every Wednesday at 11:00 a.m. EST. Visit radio.rosen.com for details

Helena M. Nevicosi
Attorney with Rosen Law Firm

4101 Lake Boone Trail, Suite 500
Raleigh, North Carolina 27607
919.787.6668 main phone
919.787.6361 main fax

Charlotte Office
301 McCullough Drive
Suite 510
Charlotte, NC 28262
Main Phone: (704)307.4600
Main Fax: (704) 9343.0044

Sutton Station
5826 Fayetteville Rd. Suite 205
Durham, NC 27713
Phone: (919) 321-0780

The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service only, a full discussion with an attorney should be undertaken before taking any action. The information posted on this forum is available for public viewing and is not intended to create an attorney client relationship with any individual. These answers are provided for informational purposes only, a person should consult with their own individual legal counsel before taking any action that could affect their legal rights or obligations.

quote:
[i]Originally posted by cathy7864[/i] [br]Dave1961 above is my stbx. Basically we had a verbal agreement. He draws the military housing allowance WITH dependents (no dependent children) and chose to stay in the home and agreed to pay for it. His total he pays me for "mutual" debt is $75 a month. I pay the entire vehicle repo payment. Of all the remaining debt that is currently left (besides the house) I gave him one larger credit card and one smaller credit card totaling about $13000 or so. Everything else he sold or shut off (phone,etc). I took on the remaining $42,000 worth of debt. He now pays out less monthly than I do. I can't afford to get my own place. He takes home a little more than me (if I quit my 2nd almost fulltime job). Now he put the house up for sale but is trying to come after me to take half the mortgage, although he agreed to take it, it is his to live in, and he draws a full housing allowance. I cannot afford to take on any more debt at this time. Any suggestions? would I have to pay half this mortgage, and if so, would I be alloted any of his housing allowance?

Cathy 7864 - You both really should seek legal advice on this. And you really need to get the original agreement on paper. A verbal agreement is not as strong because it can subjected to interpretation differently by either party.
If you agreed to allow him to remain in the home and agreed what property would be divided then you have essentially agreed on ED and have given up your right to that property. At the same time, if that is the case, then you are no longer finacially responsible for the home and you should do what is necessary to have your name removed. If he has cut his expenses (having the phone turned off or selling off property still owed for that remained his by your verbal agreement) in order for his income to stretch further, he is allowed to do this, as are you. If there is the expectation for you to still cover half the mortgage, then you are entitled to 1/2 the equity. It can not be both ways.
I don’t know about the housing allowance…or the dependents…neither of you posted about children.
I really suggest that you get a written separation agreement with all these details included…This would protect you both from future issues.

Thanks for the responses. Our 2 children are grown now, the youngest is 19. The problem is I don’t have a written agreement from the original verbal where he’d stay in the house. I have a few emails but that is it. he is now typing up an agreement but plans to change all of it to make me pay half the mortgage, and trying to make me pay half the light bill. I tried to tell him that it would force me into bankruptcy to take on more debt. All I can see is alot of fighting over this issue and all I wanted was a peaceful separation. I guess we will just have to see.

If you are no longer in the home, the utilities are no longer your responsibility except in regard that if your name is still on the account. The mortgage is another matter…

Just wondering- currently separated for 6 mos on the way to divorce. My soon to be ex-wife had debts in her name (credit cards, signature loans,) I had some in my name (credit cards,) and we had some in both our names- taxes, vehicle repo, all accrued while married over the last 26 years.
I am currently paying half on the mutual debts and all of the debt in my name only. Am I responsible for any of the debts in her name only, even if they total more than mine?
Again, all debts accrued while married.

Thanks!