My divorce has been final since June 09. In our finally divorce papers it's stated after the sell of the home husband will pay remaining mortgage owed and debt owed, with the remainder of balance of monies going to wife. What if I can no longer make house payments and default on the loan and the bank takes it back. How does the divorce decree settlement work? We are both out and recieve nothing? My credit is already affected by debt.
No amount was specified in the decree just that the remaining loan amount would be paid off and the debt listed will be paid off and the remainder would go to wife. The mortgage loan for the house is in both the husbands and wifes name. The divorce papers were drawn by both parties in agreement no legal counsel was involved.
Family Law Attorney
It all depends on what is indicated in your Dissolution Decree or Property Settlement Agreement. If there was a sum that it was estimated she would receive and you default on the mortgage, she could come back and get a judgment against you or even re-open the division of assets if there was something else you were awarded that she could take in lieu of the equity in the house. Also, if you default there is usually a "hold harmless" clause in the decree that would allow your wife to sue you should the bank who is owed the mortgage come after her for this debt once you default.