Refinancing pre-marital debt


#1

My husband abandonded me about 3 months ago. We do not have a signed separation agreement. Prior to our 3 year marriage he owned a house in his name only and had a mortgage on it in his name only. During our marriage we did not change that. We lived in my residence. He called this afternoon and was in a big hurry for me to sign some papers. He said he is re-financing the mortgage on his pre-martial house and there are some papers I am required to sign. Will his refinancing change the character of the debt on his house from pre-marital to marital debt? Could it affect post-separation support, alimony and property settlement issues?


#2

His refinance will not affect your marital rights, or make the debt marital so long as the new mortgage is solely in his name.


#3

I found out yesterday that my husband applied for the loan to refinance his house with a bank in another County. He represented himself on the application as a single man. I suppose that when the bank discovered that he was married and separated they required that I sign some forms. The forms he dropped off at my house for my signature was a Deed of Trust, Truth in Lending Statement, Tax Verification form and a couple of others. If I sign these forms will I be obligated on the debt for his house and will the debt then be considered a marital debt? Also, the new loan would increase his outstanding debt. Does that have anything to do with his ability to pay post separation support and alimony?


#4

I do not recommend you sign the deed of trust, or any other document other than a Free Trade Agreement. (which would allow your husband to obtain a loan as if he were single).
The new loan could very well lessen his spousal support obligation as it will reduce the amount of surplus funds he has available.


#5

I’m 1,000% with Erin on this…do not sign those papers…

I’d personally want to tell him to take a long walk off a short pier, but… LOL

Seriously though, I would just tell him that you will not sign those papers, but if he’ll bring you the other paper that Erin mentioned, you’ll sign that…

Although, that will still decrease his “extra” money, due to the higher monthly payment he’ll have…

Actually, now that I think about it…I would tell him that you’ll sign the FTA AFTER you have a signed SA…that outlines your spousal support/child support/alimony, etc…based on CURRENT numbers…his future debts are not your concern, yk?

Why would you want to bend over backwards for someone who abandoned you? Make him wait until you get what you need first (in writing).

Of course, if you have no kids from the marriage, and you don’t expect any spousal support (3yr marriage, and if you were working too, probably won’t get any anyway…), and there were no marital assets/debts, and it’ll be a cut and dry divorce, then there’s probably no harm in signing the FTA right away…