Home Equity


#1

Under separation agreement in 2004 stated: “The husband agrees to execute a warranty deed to the wife for said premises conveying all of his right, title and interest therein: and, wife shall be responsible for payment of the first mortgage in the amount of ***. At time of any sale of house by wife, should equity line ** not have been paid, each party shall be responsible for making payment of one half of the amount due at that time.”

Divorce was final 2005, wife then refinanced house in her name only, during refinance remainder equity line was absorbed into the new loan. Wife assumed responsibility for that and did not request my help to pay it off. House was sold in 2010 for a profit of $50,000. My questions is : was I relieved of responsibility on the home equity loan when she refinanced the house in her name 2005 only and made no request for help to pay equity loan at that time and again when she sold the house for a profit in 2010?


#2

That agreement doesn’t make any sense to me, but I read that to mean you only have liability if the equity line existed at the time the house was sold.