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Divorce Property Settlement: Ex won't quitclaim deed, secretly borrowed against wife's home & joint properties AFTER divorce!

Lexington, TN |
Filed under: Divorce

Couple owned multiple real estate properties, some paid for. All loans in husband's name only, deeds in both names. Wife had no legal rep.! Ex husband lives in luxury while ex wife struggles!

Settlement: Husband agrees to pay mortgage in full on wife's home within "x" time span, then quitclaim deed to wife. Months ago, unknown to wife, ex husband quietly paid off mortgage in full, but did not quitclaim deed, instead, ex hubby secretly borrowed money against wife's home as well as borrowing against jointly-owned rental properties which previously had no loans! (Big money) These loans took place AFTER the divorce and while still in the settlement payment phase!

What legal action can wife take? How to enforce the law with safety and security for ex wife?

Attorney Answers 2


Ex-Husband most definitely is a candidate for contempt citation, both civil and criminal, for failure to obey court order to quitclaim deed. Further, Husband may have commited fraud in obtaining loans against the property for failure to disclose wife's interest in the real property depending upon what representations he made to lender. Finally, lender may have some third party liability to ex-wife for failing to exercise due diligence and creating a mortgage lien affecting her interests without her consent, or knowledge. There also may be a defective title search or title insurance policy utilized by ex-husband in the obtaining of the mortgages with liability to those third parties. In any event, such action could bring in other parties with deeper pockets who would either be liable for negligently failing to exercise due diligence in the loan process, or otherwise be motivated to aid ex-wife in piling on ex-husband.

The opinion expressed herein is solely based upon a hypothetical situation and in no way should any person rely upon said opinion without a comprehensive consultation with a duly licensed attorney in the state in which the hypothetical situation may have occurred. Further, this attorney disclaims that any attorney-client relationship is established with any person unless a written agreement for representation is executed by both the attorney and the prospective client and good and valuable consideration is tendered and receipt acknowledged.

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Wife will need to hire an attorney to file a petition for contempt against her Ex-Husband. Based on the facts, there is a strong likelihood that she will be able to recoup her attorney's fees. If the Wife doesn't have any liquid assets, it may be possible for her to retain an attorney by agreeing for the attorney to have a lien placed upon some the marital assets that she has previously been awarded in the divorce.

Best of Luck!

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