A divorce decree is simply an agreement between you and your ex-spouse and has absolutely no effect on third parties, like lenders, and does not modify any third party agreements, like promissory notes and mortgages. As you apparently already know, the only way to get off liability on the notes/mortgages is to get them refinanced solely in your ex-spouses name. You do not say whether the decree required him to refinance. If it did not, then he is not in breach of any obligation and I also doubt that this was an oversight in the original decree. It is probably impossible in today's market for him to refinance so I doubt that a judge would modify the decree to require it. He probably has an obligation to you in the decree to take responsibility for the LLC's debts and until he lets one of them default, he's fulfilled his obligations to you. Unfortunately, as you already know, your credit report will continue to show you as a debtor and if he defaults on the loans, your credit will take a hit. You'll have a legal action against him at that point, but it won't cure the credit report problem. Finally, no, you don't have a right to 1/2 the rents the LLC has collected because you gave him your interest in the LLC and apparently that was not coupled with an obligation for him to refinance the debts. After all, you have not been making 1/2 the mortgage payments since the divorce either, right? There may be more specifics in your decree that you have not related to us in you question that may lead to a different conclusion. Best of luck.
Answered on Dec 08th, 2011 at 1:42 PM