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  • Debt division??

    Hello,

    I am new to this site, so I wanted to say thank you in advance for viewing and responding. This has been a difficult time, but support such as these sites make it easier.
    I hope you can provide some insight on this matter about debt assignment. My post may seem long, but I have clearly laid out the details. THANK YOU FOR YOUR REPLIES!!

    My questions (2) are at the end.

    -
    Married in late August 07. Separated in Feb. 08 (Lived together 5 months)
    -For 4 months, we lived at "home" with my parents, and paid no rent/expenses
    -For 1 month, we lived in a rented suite.
    -Prior to marriage, we did not live together or share a home. However, we spent the majority of most days together.


    DEBT:


    Credit cards. (Visa-I was primary, and ex added as "joint" 4 months prior to marriage) (AMEX- I was primary card holder)

    During marriage (and prior to) I worked, and she well, did nothing other than school. I paid for daily living expenses via cash and the credit card.

    Visa was used for all shared/enjoyed living expenses PRIOR TO marriage, and during.

    She had a bank account. I was not aware of the balance or $ going in/out. I suspect her parents were providing some cash.

    I was the only one contributing to payments, etc. She may have contributed the odd occasional payment, but the majority came directly from me, from my RBC bank account (direct payments online).


    At time of separation, the Visa and Amex had a balance (6500/1500 respectively).


    Investment Property


    We purchased a townhome together, with equal down deposits (prior to marriage). The townhome was rented out since purchase and was managed by me (collecting rent, doing basic repairs, etc).

    I also paid for monthly interest on 2 lines of credit used for the down deposit.

    We will sell the property.


    Questions:

    1) Debt:

    a) How will the credit card debt acquired during the marriage be divided, since my ex did not pay anything toward the balance (For the credit card debt prior to and until February, I made several payments totalling ~ 20 000).

    b) How will the outstanding balance on the credit cards be divided?

    2) Property


    After the property is sold (mortgage and penalties paid back, and the lines of credit paid back) how will any remaining funds be divided, considering I managed the property and paid the interest on the lines of credit?

    (I assume that I will be paid back the interest, and the net will be divided 50/50)

    Thank you!



  • #2
    Shortorder:

    If your wife is a joint cardholder on both credit cards, she is responsible for repayment of one-half of the outstanding balance and the banks could go after either one of you for repayment. However, you should check your Cardholder Agreement because if she was only added as a spouse, as the Primary Cardholder, you are responsible to the bank for repayment of the entire debt. If you haven't already done so, cancel both credit cards immediately (and any other credit cards or Lines of Credit that are joint) and have new ones issued in your name only because, as long as the accounts remain open and your wife still has credit cards, she can continue to run them up. If you are the Primary Cardholder and can prove that some of the credit card expenses belong to your wife, you may be able to get the money from her, either voluntarily, through small claims court or in a Separation Agreement.

    During the marriage, it does not matter who spends or pays for what. If the husband works and the wife is at home all day (or vice versa), the value of all assets and debts are still evenly divided on the separation date for equalization purposes.

    If the property was purchased jointly, again, it doesn't matter who paid the expenses. The net proceeds will most likely be divided 50/50.

    If you haven't already consulted an attorney, I suggest you do so ASAP.

    Linda

    Comment


    • #3
      There is lots of information on division of family property on this forum and the internet. Do a google and forum search on "net family property" and division of family property. You will find lots of information.

      Your situation does not appear to be very complicated.

      Comment

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