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courier2003

Getting your name off a Home Equity loan Joint account with former spouse

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In July 2011, the divorce from my wife was finalized. One of the conditions of our split involved the separation of all financial accounts in both of our names. Those conditions were satisfied in our divorce agreement with the exception of one account. We still had an Equity loan (or second mortgage) on the home we used to reside in together. I would go on to surrender all of my rights that house. I signed a form which allowed me to have my name taken off the deed. I didn't want the house or any of my former wife's assets. 

 

The conditions of our separation, and eventual divorce, said "Husband and Wife stipulate and agree that they have heretofore divided any joint accounts and that each party shall be the sole and separate owner of any and all such accounts in his or her sole name."  To this day, that condition hasn't been satisfied with this particular loan. I haven't complained very much because the loan has continued to be paid on time every month. It does, however, have a high interest rate, so my ex-wife isn't making very much progress on paying off the loan. She is actually paying just as much on interest as she is on the principal. 

 

In the meantime, I've had limited success after reminding her about this situation. Right now, I can't help her with paying off the loan because of my own financial situation. I've been told that she needs to refinance the loan or sell the house. She is now using the residence as a rental property. and she has told me that the amount, which is now about $13K, is too big to move to an unsecured personal loan.  Although I myself am not paying on this loan, it still shows up on my credit as debt, which has begun causing some problems for me.  In the meantime, this problem drags on with no resolution.

 

My former wife sought the legal help to begin the divorce process. Therefore, I can't speak directly with her attorney about this matter. I never sought an attorney myself. I was simply sent the divorce papers, I signed them, and sent them back. After almost six years, I'm still dealing with this one last financial matter. Advice?

 

 

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Why did you sign something that said all the joint accounts had been " heretofore divided"? The account you referred to had not and could not be divided without the agreement of the creditor. Just hope she keeps making the payments.

BTW, since you were pro se in the divorce there is no reason you can not communicate with her lawyer. But six years after the divorce he will undoubtedly tell you to buzz off. Also, he is not going to tell his former client she has to do anything in this matter.

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The conditions of our separation, and eventual divorce, said "Husband and Wife stipulate and agree that they have heretofore divided any joint accounts and that each party shall be the sole and separate owner of any and all such accounts in his or her sole name."  To this day, that condition hasn't been satisfied with this particular loan.

 

Your comment doesn't make sense.  First of all, it's not a "condition."  It's nothing but a representation about something that supposedly had already happened and an agreement regarding assets.  Second, the representation has nothing to do with loans or debts.  Apparently "RetiredinVA" read it differently.  However, since the second half of the sentence refers to "owner[ship]" of "such accounts," I interpret the entire sentence as referring only to asset accounts and not to things like loan accounts.  Maybe that's not what the two of you mutually intended when you agreed to this provision, but I'm guessing that your ex's attorney prepared the document and that you signed it without there being any meaningful discussion about its meaning.

 

 

 

Advice?

 

Folks on Internet message boards can't (or shouldn't) give legal advice.  Even if that weren't the case, no one who hasn't read your divorce judgment/decree will be in a position to tell you much of anything.  As mentioned above, the language you quoted isn't terribly relevant to the situation you described, so one would need to determine if there are other provisions that are relevant to your situation.  It's possible that you made a terrible mistake by signing away your interest in the home without ensuring that there is some provision for dealing with this loan.  On the other hand, maybe there is something in there that's relevant.  You need to seek a consultation with and advice from a local family law attorney.

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I apologize if I wasn't clear on "advice." What I meant to ask was for suggestions on how to handle this situation. As some of you have already seen from my previous posts, I'm no expert on legal matters. My ex-wife sought the divorce. I never sought an attorney myself. Although NC is a 50/50 state when it comes to dividing assets, I didn't want to fight her in court for anything. I was content to give her everything and walk away with only what I myself brought into the marriage. I never talked directly with her or her attorney. I left the state just before my divorce from her was finalized. The only issue we didn't resolve was having my name removed from a loan on a residence to which I no longer had any rights. I'm facing the possibility of bankruptcy right now, so I will eventually have to seek legal counsel on both issues.

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As some of you have already seen from my previous posts, I'm no expert on legal matters.

 

FWIW, I'm sure I've seen your previous posts, but that doesn't mean I remember anything about them (or that anyone else will).

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