Legal Question in Family Law in Arkansas

Re: Violating property settlement

Do you have recourse to a violation of the terms of a Property Settlement Agreement?

Of course.

First, the Agreement itself calls for some sanctions if the terms are not performed -- like the award of costs and attorneys fees if you have to sue to enforce the terms. It also provides that you shall be held harmless, which means that the creditor can still sue you as you are liable on the contract with them, but you can recover, in judgment, the full amount from your ex-wife since she agreed to "hold you harmless". Of course a judgment against her may not be what you are looking for. She may be judgment proof. If you are sued by the creditor, you would name your ex-wife as a third party defendant in the lawsuit to have the judge assess your damages against her.

If the Property Settlement Agreement was incorporated into the Final Decree of Divorce then the divorce judge has enforcement and sanction powers. The question about your remedy is "how were you damaged as a result of her breach of the contract terms?" The Court would not be able to get you out of your liability with the car financer. The Court can only hold her in Contempt and order her to provide a remedy (like paying you back). You would have to file a Motion to Reopen the Divorce Case in order to file a Show Cause for Contempt of Court for failing to obey a Court Order (the term of the PSA). The Show Cause is meaningless in reality because the judge won't put her in jail, cannot restore your credit, and your have identical remedies in civil court to bring a judgment against her once you are hit by the collection agency.

Your real question is probably something like "I made a bad deal with the crazy lady who has since ruined my credit by defaulting on the jointly held property. CAN I GET OUT OF LIABILITY WITH THE CAR COMPANY? And the answer is no, when you ended your divorce still owning property with your ex-wife you took the risk that she'd flush you down the toilet credit wise. Your only remedy is to pay the debt (to save your credit) and hope to collect it back from her.

Good luck.