DONALD F. CONVISER, a Certified Family Law Specalist, owner of Warner Center Law Offices in Woodland Hills in the San Fernando Valley, an effective and aggressive Family Law and Divorce Attorney serving clients in the courts of Los Angeles and Ventura County for over 35 years, offering a free confidential consultation regarding your divorce or family law issues, at 818/880-8990, brings you another informative and educational blog, responding to questions posed to him by members of the public in areas of Family Law and Divorce.
I frequently receive questions from people regarding their family law issues. The following is a question which the inquirer agreed may be publicly revealed, and my answer to the question:
QUESTION: Can I get our of my loan obligation during our divorce? We refinanced a home during the marriage. My husband is keeping the home. Is there a way I can get out of the loan obligation through divorce?
ANSWER: If your husband refinances the home after the divorce (or during the process of settlement), he can take the loan in his own name. Without his doing so, the current lender won't relieve you of your obligation on the currently existing loan because the lender relied upon your and your husband's joint credit to extend the existing loan. Even if a debt or obligation is assigned to one party in the divorce judgment, the creditor may be able to collect from the other party if the party ordered to pay the debt fails to do so. If your husband doesn't refinance the house to pay off (and get you off) the existing loan, that loan will show up on your credit report and affect your ability to borrow money. If you have not yet signed a marital settlement agreement or a stipulated judgment in your divorce case, you should negotiate for your husband to refinance the home as his sole obligation as a condition for him to receive the home in the settlement, and if he does not or cannot refinance the home, the home should be sold.
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