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Divorce Proceeding And Financial Recovery
Q: IF MY DIVORCE DECREE REQUIRES MY EX TO PAY THE MORTGAGE, CREDIT CARDS OR OTHER BILLS, WHAT HAPPENS TO ME IF THEY DON’T PAY?
A: The short answer is – You’re still on the hook. The delegation of responsibility for debt obligations on credit cards, mortgages, car loans, taxes and other personal debts within a Divorce Decree is not binding on third party creditors, banks or lending institutions. Furthermore, even post-divorce obligations that are being paid and remain completely current will weigh heavily on your future debt-to-income ratio. This will affect your credit score and any ability to properly apply for needed credit or loans at competitive rates long into the future.
Make sure all joint obligations are addressed prior to any divorce action. Be sure to fully separate all joint debts completely prior to the completion of any divorce proceeding. Be certain to legally separate all financial obligations directly with each creditor. Don’t rely on the delegation of responsibilities in your Divorce Decree – It won’t protect you, your future, or your credit score. Compile a complete list and obtain all three credit reports to understand all your joint obligations before completing any divorce proceeding.
Q: CAN I MODIFY MY MORTGAGE AFTER MY DIVORCE?
A: Yes, but only if you have full and documented authority to act on behalf of your ex-spouse. While Divorce Decrees often call for the transfer of marital homes to one spouse or the other, this does not separate the transferring spouse legally from the mortgage holder. That legal connection still continues with the bank, regardless of the Divorce Decree, meaning that the bank won’t adjust or address any mortgage problem without the consent and active participation of the ex-spouse – A condition that can be fatal to any efforts to speak with or modify your mortgage after your divorce.
To properly protect your future, obtain a fully documented Power of Attorney before the end of your divorce action. This will allow you complete authority to control the full interest of y our house and negotiate with your mortgage holder far into the future without any consent or involvement from your ex-spouse.
To learn more about post-divorce mortgages and your financial future, call the knowledgeable attorneys at the Law Offices of Neil Crane today.We can be reached at 203-230-2233 or toll-free at 1-888-249-3027. Or complete our simple Contact Form online for a prompt response and a free consultation.
To learn more about legal options to complete debt separation during a divorce, call us for a free consultation at 203-230-2233 or toll free at 1-888-249-3027 or fill out our simple online Contact Form today.