S/O divorce & debt

[leshoequeen]

This talk of divorce and community got me thinking of the opposite. What happens if you divorce with no assets - only significant debt like a mortgage underwater like so many have or even credit card or car payment debt?

[Deleted]

You split it up and the divorce decree spells out who is responsible for what.

[Deleted]

I don't know what other posts you are referring to, though, so I may not have answered your question.

[WOT?*]

You split up what you DO have (assets and debts) and you start over. You sometimes struggle, but if you have no assets chances are you were struggling before too. People walk away from underwater mortgages if they can't afford to pay them on one income and then rent whatever they can afford, try to pay their credit card bills after all the other bills are paid and food is on the table. In other words, you go on much like before but with less money.

I let PH have the house and everything in it and took no money until the house was sold and then took my share of the proceeds, which i used to pay for the divorce. I figured I had a better chance at starting over than he did, and the kids were staying with him initially after we separated (he was a SAHD disabled veteran and I worked at a low-paying sales job at the time). He'd trashed our credit, hid bills when they came in. I was roommates with a co-worker for a while, got lucky and met DH eventually and life continued to improve. You start with zero or little and work your way back up.

[lys]

You need to remember that if your name is on a loan, the bank will look to you for payment, even if the divorce decree says Ex is responsible for payment.

[chessie]

Really depends on the type of divorce or if you have a prenup. Community state or not, wouldn't matter there. Assets/debt split up otherwise though. So the lesson to be learned have one setup just in case, or you could be really screwed. My SIL walked out with 50k in debt and her ex scott free since the debt was in her name only..

[Deleted]

Sept 7, 2012 15:18:16 GMT -5 lys said:

You need to remember that if your name is on a loan, the bank will look to you for payment, even if the divorce decree says Ex is responsible for payment.

Whether a creditor has any right to recover from one or both parties to the divorce is going to depend on state law.

But it's cool that you're branching out into legal advice.

[sillygoosegirl]

Couples I've known in this situation have also filed for bankruptcy...

[Deleted]

Sept 7, 2012 15:30:10 GMT -5 @angryharpy said:

Sept 7, 2012 15:18:16 GMT -5 lys said:

You need to remember that if your name is on a loan, the bank will look to you for payment, even if the divorce decree says Ex is responsible for payment.

Whether a creditor has any right to recover from one or both parties to the divorce is going to depend on state law.

But it's cool that you're branching out into legal advice.

how dare you question the great and all-knowing Sisu??