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Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

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Old 04-07-2014, 05:56 PM
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What can I do to help pay the debt I am going to be receiving after the separation agreement is signed? Can I have my spousal or Child Support payments lowered until the debt is paid off?

I am basically being strapped with a line of credit of 20K, a loan of 15K and will be getting a second car debt of 35K. How is this fair just because I make more money than my ex but ironically not enough to survive on now.

Is there not a stipulation in the courts that says that I can't be left destitute?

Also, I thought all debt was marital debt. Because it is under my name I am being told that its my debt.

What gives!!
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Old 04-07-2014, 06:02 PM
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Who told you this?

Do you not have a lawyer?

edit - I just read one of your old posts and you like to believe everything your ex tells you.

How sad.
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Old 04-07-2014, 06:04 PM
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Which part are you referring to? About the support payments?
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Old 04-07-2014, 06:04 PM
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Quote:
Originally Posted by Bassix View Post
What can I do to help pay the debt I am going to be receiving after the separation agreement is signed? Can I have my spousal or Child Support payments lowered until the debt is paid off?

I am basically being strapped with a line of credit of 20K, a loan of 15K and will be getting a second car debt of 35K. How is this fair just because I make more money than my ex but ironically not enough to survive on now.

Is there not a stipulation in the courts that says that I can't be left destitute?

Also, I thought all debt was marital debt. Because it is under my name I am being told that its my debt.

What gives!!
I'm not sure where you got the idea that they should be under your name.

In my case, the vast majority of the debts were under my name, because my ex didn't work for most of the marriage. But both her lawyer and mine agreed that they would be split evenly the same way assets are.

The circumstance where they won't be split is if one of the parties attempts to rack up substantial bills before separation, or has a gambling addiction, or other issues that fall under reckless depletion of assets.

But if those debts were incurred for valid purposes that benefitted both of you (living expenses, entertainment expenses, home improvement etc) or were standard expense like clothes etc., then they should be split 50/50.
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Old 04-07-2014, 06:05 PM
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Do you not have your own lawyer to advise you of your rights?
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Old 04-07-2014, 06:11 PM
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Yes I have a laywer. I am just looking for information from other people who may have gone through a similar situation.

Yes all the debts were under my name because my ex did not make enough to get loans etc. I was able to secure loans due to my employment and my salary. These decisions were made together while we were married, ie: buy a car, buy some land, buy a trailer etc
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Old 04-07-2014, 06:16 PM
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All debt amassed through time of marriage is divided, as are assets, at time of equalization.

Have you not prepared and exchanged budgets and/or financial statements?

Has your lawyer given you any advice insofar as "the process" you will go through?

[I wish my ex would do everything I told him to do - would make my life alot easier]
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Old 04-07-2014, 06:20 PM
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Yes we have exchanged budgets and financial statements. They are still being worked on. I haven't formally sat down to go through everything yet because everything is still going back and forth. But from what I am seeing, the debts are on my side of the column and not split. The only thing I can see is that so far my ex is not getting any of the pension. Maybe that's why I'm taking on the debt?
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Old 04-07-2014, 06:44 PM
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So while everything is "going back and forth" you are excluded from making decisions about how/when/when you lawyer communicates with opposing counsel?

Perhaps you have some sort of arrangement with your lawyer where he doesn't consult with you but just does everything for your final signature?

I can't help you if you can't help yourself. Maybe someone else can solve this riddle.
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Old 04-07-2014, 08:46 PM
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Quote:
Originally Posted by Bassix View Post
Yes we have exchanged budgets and financial statements. They are still being worked on. I haven't formally sat down to go through everything yet because everything is still going back and forth. But from what I am seeing, the debts are on my side of the column and not split. The only thing I can see is that so far my ex is not getting any of the pension. Maybe that's why I'm taking on the debt?
The debts and assets have to be split somehow. During the equalization process, each of you lists the debts in your name and the assets in your name. Something that's in both your names (ie, matrimonial home) is put half in each person's statement. Then whoever has the greater net worth makes an equalization payment to the other, so that you both end up with the same net worth.

If all the debts are in your name, but the assets are more evenly spread out between you, your ex will likely have to make an equalization payment to you.

If you don't like the situation where you get all the debt, don't sign it; negotiate something different instead. Now is the point where you are supposed to do that. Your ex has to pay her half of those debts one way or another, and the easiest way is to keep the debts in your name, and she gets less of the assets, so you both end up with the same net worth. If you buy her out of the house, she gets less than half, for example. Instead of getting half your pension, she gets less than half. Instead of each of you getting a car, you get both the cars. Whatever works out in your particular situation.

The problem with the pension being the asset you get more of in exchange for getting more of the debt is that it's not an asset you can access right away. Unless you are really attached to your pension, I would suggest finding other assets you can keep a greater amount of.
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