Legal Question in Banking Law in Georgia

I co-signed on a Home Equity Line of Credit with my then wife. We have since divorced. In the divorce Proclamation she accepted full responsibility of the Mortgage of the home (that was fully in her name) as well as the HELOC (co-signed). I also signed a Quitclaim Deed on the property giving it to her. She has informed me that she is now going into forclosure on the house. It was my understanding that I would be able to transfer the HELOC into her name and take myself off of it because of the arrangement of our divorce. Is this true? Am I still fully responsible for this debt and will my credit be affected if i am unable to be released from it at the time of forclosure?


Asked on 10/13/09, 5:16 pm

1 Answer from Attorneys
Scott Riddle Law Office of Scott B. Riddle, LLC

Any agreements or orders between you and your ex-spouse affect only the two of you. Lenders are not bound by divorce cases (other other cases) in which they are not a party, and they can rely on the loan documents either or both of you signed. Neither you nor the Judge can relive you of the debt to a third party. This was the risk accepted by not selling or refinancing the property in the divorce case.

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Answered on 10/18/09, 5:27 pm


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