depleting line of credit

F

freespirit

New member
Hi guys,

so we had a case conference and after hearing mine and my husbands side of the story, the judge wrote in the order that Mr. XYZ depleted parties line of credit for $ 123 since separation. What does it mean. does he have to pay the whole amount or would it be split between me and him as a family debt.

In reality while I was busy with our new born; he did take out all the money from our joint line of credit without my knowledge. Moreover as soon as he took out all the money he filed for divorce.
 
Same issue here, ex spent alot on a joint line of credit. I never had any clue about it. To be honest, I didn't even know how to acess it as he controlled the money. Long storey short, it makes no difference who spent it. As long as it was before the official date of seperation, its joint debt.
 
If he depleted AFTER separtion, then he should pay it back. If there was some used before separation, that would be joint debt. If he disputes, you would need detailled statements.

There have been cases where one party recklessly depleted assets for things like gambling, where the debt had been assessed as belonging to the reckless party. But that is rare.
 
freespirit said:
Hi guys,

so we had a case conference and after hearing mine and my husbands side of the story, the judge wrote in the order that Mr. XYZ depleted parties line of credit for $ 123 since separation. What does it mean. does he have to pay the whole amount or would it be split between me and him as a family debt.

In reality while I was busy with our new born; he did take out all the money from our joint line of credit without my knowledge. Moreover as soon as he took out all the money he filed for divorce.
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I am sorry your stbx did this. Its terrible. I believe that is what is considered "intentional or reckless depletion". The fact the judge noted this is great. My understanding is that it will allow for a variance in the division of assets as per the FLR.
 
takeontheworld said:
Same issue here, ex spent alot on a joint line of credit. I never had any clue about it. To be honest, I didn't even know how to acess it as he controlled the money. Long storey short, it makes no difference who spent it. As long as it was before the official date of seperation, its joint debt.
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TOTW, OP stated it occurred after separation. Which is much better for her
 
blinkandimgone said:
Does your post say you're fighting over $123 or are you meaning $123K - because one is really dumb, and the other is a big deal.
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I assume the $123 is used merely as a blank number, not the actual amount. Essential $X amount was depleted, as the OP didn't want to use the actual number.
 
blinkandimgone said:
Does your post say you're fighting over $123 or are you meaning $123K - because one is really dumb, and the other is a big deal.
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123 is just a factious amount. I wish it was this low, then I would have paid the whole amount :)

and I just noticed that judge wrote that Ms. abc indicated that Mr. xyz depleted $123 line of credit ( sorry her hand writing is really hard to read:( ). however on many occasion the judge did tell my husband that he is not being fair and being inconsiderate. she also didn't allow him to do any motion for certain amount of time and told him to deal with his financial issues. Also that he needs to start paying SS and CS right away.
 
freespirit said:
123 is just a factious amount. I wish it was this low, then I would have paid the whole amount :)

and I just noticed that judge wrote that Ms. abc indicated that Mr. xyz depleted $123 line of credit ( sorry her hand writing is really hard to read:( ). however on many occasion the judge did tell my husband that he is not being fair and being inconsiderate. she also didn't allow him to do any motion for certain amount of time and told him to deal with his financial issues. Also that he needs to start paying SS and CS right away.
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I think the important part here is that he did this *AFTER* the date of separation. I am pretty sure its his debt and that you will be covered with a variance in division.

My stbx did the same thing. Make sure that you have all the statements of the LoC. These will show who, when and how much.
 
plainNamedDad44 said:
I think the important part here is that he did this *AFTER* the date of separation. I am pretty sure its his debt and that you will be covered with a variance in division.
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even thought in the endorsement it says (since separation) however in bank statements it shows that he maxed it out in 5 months BEFORE the date of separation. the thing is lets say (factious number again) he was making $200 monthly and his monthly expense is $50 and still he was taking out $200-$300 from JLC
(ALL NUMBER ARE factious)

I know it sound very weird and may not make much sense but i don't know how else to explain my self (ENG is my second language)
 
freespirit said:
even thought in the endorsement it says (since separation) however in bank statements it shows that he maxed it out in 5 months BEFORE the date of separation. the thing is lets say (factious number again) he was making $200 monthly and his monthly expense is $50 and still he was taking out $200-$300 from JLC
(ALL NUMBER ARE factious)

I know it sound very weird and may not make much sense but i don't know how else to explain my self (ENG is my second language)
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You are doing just fine i.e. bang up job ;)
 
Have you and your ex agreed on the date of separation?

If he took the money out of the line of credit *before* the date of separation (which the bank statements support), I think you are out of luck. That is shared debt and you are both responsible for it.

If he took it out *after* the date of separation, it is his debt and he is responsible for it. The amount he owes should be subtracted from the value of his share of the marital property.

It sounds like the judge wrote one thing in the endorsement, but the bank statements say something different. Was the judge confused or unaware of the bank statements? Or is the judge saying that your ex will have to pay this debt even though the bank statements say it was incurred during the marriage, not after?
 
billm said:
What did he do with the money from the LOC?
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Have no idea ...he took out cash...first he online transfers it to his personal account then he did cash withdrawals .....after that there is no record of it. But my guess is that the 8 months that he purposely didnt work so he wont have to pay child support....he used that money to live on..but again that is my guess
 
What about the interest payments, who is making those?

My ex removed money from the homeline on date of separation. She had to claim it as an asset and I took the debt since I was taking over the home. In fairness I had removed the same amount to help with bills and it also went on my debt. After that we were both locked out by the bank until a settlement was reached.
 
During my marriage my ex took out a significant line of credit twice without my knowledge. When I discovered he had done this the 1st time I was livid and told him if he ever did anything like that again I was gone. I pinched pennies and had it paid off.

Shortly after this I discovered he had done it again. He actually told me while I was in the midst of a week long admission to Sick Kids with our youngest. He said that he had taken the money to buy a motorcycle. He could do what he wanted because he worked therefore it was his money.

It was the last straw for me. I told him I was leaving and made it extremely clear that I was not going to be held responsible for repayment.

Initially my ex advocated that I was equally responsible for this debt and had his lawyer try to get me to agree. I managed to advocate better, had my ex change his mind and put it in writing... Despite the line of credit being taken out and spent during the marriage, prior to date of separation, he took full responsibility for it. I had zero knowledge, access, or benefit from these funds. I suppose I got lucky here after reading the previous posts.
 
smileandwalkaway said:
Initially my ex advocated that I was equally responsible for this debt and had his lawyer try to get me to agree. I managed to advocate better, had my ex change his mind and put it in writing... Despite the line of credit being taken out and spent during the marriage, prior to date of separation, he took full responsibility for it. I had zero knowledge, access, or benefit from these funds. I suppose I got lucky here after reading the previous posts.
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WOW how did u do that...I mean after depleting the line of credit and filling for divorce...he made trips to Mexico on new year eves and then parties and clubbing every Friday nights...he gets so drunk that i can smell the alcohol all the way downstairs...then BBQ on every Sunday with his friends...I mean this is soo unfair that he wants me to pay half of it...where as i m taking care of both the kids and him not paying a single dime for CS or SP for the last one year saying he didnt have a job
 
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