QUESTION
My spouse has accumulated an enormous amount of loans in her name am I liable?
Asked on Jul 14th, 2011 on Child Custody - Oregon
More details to this question:
My spouse has gone out over the last 8 years and accumulated signature loans to a very large amount - in divorce am I liable for these debts as they were done without my knowledge?
18 ANSWERS
Family Law Attorney serving Everett, WA
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Burkhalter Law PLLC
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You could argue the debts were not for the benefit of the marriage.
Answered on Aug 05th, 2011 at 6:30 AM
Property/debt division is negotiable for various reasons. It can be argued, including what the loans were used for - marital purpose or not.
Answered on Jul 19th, 2011 at 1:38 PM
No, you can request that those debts remain her responsiblility. You need an attorney to protect your rights and make sure you do not pay for more than what you owe (her debts).
Answered on Jul 19th, 2011 at 1:28 PM
Medical Malpractice Attorney serving Clermont, FL
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Joanna Mitchell & Associates, P.A.
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You are potentially liable for any debt that was incurred during the marriage, whether you knew about it or not. However, if you did not receive any benefit from any of these loans, you may have an argument against having any liability. I strongly suggest consulting with an experienced family law attorney in your area to assist you and properly advise you.
Answered on Jul 19th, 2011 at 1:26 PM
Steven D. Dunnings
You could be. You need to understand that the Courts consider a marriage a partnership. Anything acquired during the marriage is marital property regardless of whether you knew about it or not. If your spouse has built up such debt, you better get out before it gets any worse. This e-mail is covered under the Electronic Communications Privacy Act, 18 USC 2510-2521, and is legally privileged. The information contained in this e-mail is intended only for use of the individual or entity named above. If the reader of this message is not the intended recipient, or the employee or agent responsible to deliver it to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited.
Answered on Jul 19th, 2011 at 1:26 PM
William Guy Pontrello
To the bank or loan company, no, but they may be equitably distributed if used in the marital relationship.
Answered on Jul 19th, 2011 at 12:16 PM
Anything accumulated during the course of marriage is subject to equitable division. Equitable division, however, does not necessarily mean equal division. Whether a Court would require you to be responsible for the debts is dependent on the circumstances under which they were acquired.
Answered on Jul 19th, 2011 at 11:52 AM
Maybe. But what you really need is a consultation with qualified family law counsel.
Answered on Jul 19th, 2011 at 11:36 AM
Glen Edward Ashman
In a divorce, a court will have to determine how to divide all debts and assets accumulated by either party during the marriage.
Answered on Jul 19th, 2011 at 10:06 AM
Bankruptcy Attorney serving North Olmsted, OH
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James F. Lentz Attorney & Counselor at Law
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Maybe. it depends upon the phrasing in each of the loans and whether you signed on as a co-borrower. It also depends upon the purpose of the loans; whether they were used to sdustain you withbasic food and clothing or whether they were used for your medical care. Gather up the documents and take them to an attorney for a more specific answer.
Answered on Jul 19th, 2011 at 9:56 AM
Patricia C. Van Haren
If the loans were acquired during the marriage and the money was used to benefit the community you would be liable for of the amount owed. In order to determine what would be considered to be for the benefit of the community, you would need to produce documentation of the loans as well as what the money was used for.
Answered on Jul 19th, 2011 at 9:54 AM
2 Awards
Yes, you likely are liable as it is a marital debt. There are some limited ways around these debts depending on what the funds were used for. . I suggest you consult a local Family Law attorney to discuss your case in greater detail and learn all of your rights and options. Good luck.
Answered on Jul 19th, 2011 at 9:35 AM
This is a community property state and for the most part debts incurred by one spouse are the obligation of both spouses. There are a few exceptions.
Answered on Jul 19th, 2011 at 9:19 AM
Civil Attorney serving Spokane, WA
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Glenn E. Tanner, Attorney at Law
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The judge will make a fair and equitable division of your debts considering your financial futures and waste.
Answered on Jul 18th, 2011 at 2:37 PM
Probate Law Attorney serving Colorado Springs, CO
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John E. Kirchner
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Unless a creditor attempts to pursue a "family necessities" theory against you based on what the loans are for, generally you have no liability to the creditor; at least until you are sued and a court rules against you. As between you and your spouse, however, the presumptive starting point is that those loans are marital debt if they were incurred during the marriage. The fact that they are in her name alone is only one of the factors that a court would consider in deciding how to allocate responsibility (between you and your spouse) for some or all of that debt. The fact that you did not know of one or more is not, by itself, dispositive. But, that would certainly suggest that there was no marital purpose related to the money she borrowed.
Answered on Jul 18th, 2011 at 2:37 PM
Family Attorney serving Seattle, WA
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Seattle Divorce Services
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To the extent they were incurred during the marriage they would appear to be community debts, so you would have at least some potential liability. You may want to talk to a debt attorney about this. It may help, however, that the loans were taken in her name only. In terms of a divorce, it is up to the court to determine how responsibility for paying the debts should be handled. Again, the fact that you were unaware of the debts may help. Keep in mind that in a divorce the court cannot take away any rights a creditor may have to collect, it can only order who should pay the debts. If one party is ordered to pay the debts but the other spouse ends up having the debts collected from him/her, then the spouse who ended up paying may have a right of reimbursement from the spouse who was supposed to pay.
Answered on Jul 18th, 2011 at 2:15 PM
If the debts were accumulated during the marriage, then, they are probably community debts. If you get divorced, the court is going to divide those debts up in some fashion. However, regardless of who the divorce court orders to pay the debts, if your spouse doesn't pay the debts that she is responsible, then, those creditors could come after you to collect their money. That is the general rule. Whether you fall into an exception to the rule would require much more detailed information and time spent with an attorney reviewing the facts in detail.
Answered on Jul 18th, 2011 at 2:15 PM
General Civil Trial Practice Attorney serving Beaverton, OR
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Vincent J. Bernabei, LLC
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There is a presumption that any debts that have accumulated during the marriage will be equally divided on divorce. To overcome that presumption, you will have to show that you did not know about the debts, that they were incurred for her own personal or business reasons and the family did not benefit from them.
Answered on Jul 18th, 2011 at 2:13 PM