 Splitting
property before splitting up
|
 Dear
Dr. Don,
Will I still be responsible financially for my ex-husband's
and my home if he refinances in his name, before the final divorce decree? We
live in a community property state (Texas), and I don't want the house. I told
him to refinance solely in his name.
Thank you,
-- Khelsea Crossroads
 Dear
Khelsea,
You need to speak to your divorce attorney about this matter, to
understand whether you will be under any financial obligations if
your husband refinances the house before the divorce becomes official.
In community
property states such as Texas, debts assumed within the marriage
are joint obligations of both spouses, even if only one spouse is
party to the contract. Laws in community property states may consider
the "date of separation" concerning joint obligations
when both sides agree that the marriage is over even though the
marriage has not been formally dissolved in court. Your responsibility
for financial obligations taken on after the date of separation,
but before the divorce is final, can vary depending on state law.
Once you've found out from your attorney whether you'll
continue to share responsibility for the payments, if your husband
refinances prior to your divorce becoming final, you'll know whether
you need to convince him to wait to refinance.
Since you're unlikely to sign over your equity interest
in the home if you keep the financial responsibility for making
the payments, it shouldn't be that hard of a sell. A rate lock on
the mortgage loan can lock in today's rates while waiting for the
divorce to be finalized.
For some helpful hints on managing your credit through
a divorce, read the FTC's Facts for Consumers guide "Credit
and Divorce."
To ask a question of Dr. Don, go to the "Ask
the Experts" page and select one of these topics: "financing
a home," "saving & investing" or "money."
| 
