Legal Question in Family Law in Iowa
Liablility for bills after a divorce
My boyfriend was recently divorced. While married, his ex-wife bought a jeep that he co-signed for. She has since stopped making payments on it and so he has recieved a notice saying that they are going to start garnishing his wages for it. She has already sold the jeep to someone else so he doesn't even have it. The thing is, she works at a bar and they pay her under the table so they don't have to report taxes on her, so since it appears as though she doesn't work, he is now being held liable for this debt. Is there anything that we can do in this situation? We do not want to have to pay off this vehicle for her, since we don't even have it. He considered filing bankruptcy (because this is not the only bill she has left him with) but I am hoping we don't have to resort to that. I mean, she works almost every night of the week and gets paid wages and tips plus she gets $150 a week from him for child support, and on top of all that she lives at her parents hosue so she doesn't even have any bills. So, there is absolutely no reason why she shouldn't be able to pay this, she jsut isn't because she knows he will end up having to. I want it to be known that she DOES have a job though. Please help!!
1 Answer from Attorneys
Re: Liablility for bills after a divorce
Fiurst of all, if there was no specific agreement regarding the disposition of the Jeep each party is responsible for the debts acquired in the marriage.
Second, I fail to understand how she could sell a vehicle that was financed without a release of the finance company's interest. How she was able to do this would be an interesting thing to find out, because it has all sorts of implications.
Second of all if she is being paid under the table and not reporting her income both she and her employer may encounter tax trouble as well.
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