Legal Question in Credit and Debt Law in Kentucky

Name not taken off mortgage when divorced

My husband and I were divorced almost 2 years ago. Together we had a large loan ($140,000.) from a local bank for our home, his heavy equipment (backhoe and dozer, trucks, etc.), his new pick-up truck, all combined. All of these things are listed as collateral on the loan. He was awarded all this in the divorce, and I signed a quitclaim deed on my part of the home (it had been a survivorship deed). He was supposed to refinance this loan, taking my name off the debt. He was given 30 days to get my name off the loan. It has been almost 2 years and he has not done this because he wouldn't be able to get it refinanced on his own. I have no problem with this, except for the fact that he has no life insurance on the loan. If he were to die, would I be responible for the payment on this loan? Since my name is still on it, could the bank sue me for the balance?


Asked on 5/06/04, 11:49 am

1 Answer from Attorneys
E. Brian Davis Davis Law Office

Re: Name not taken off mortgage when divorced

While a review of the relevant documents would be necessary to be certain, it is highly likely that the bank could seek to collect any balance owed on the debt if your ex-husband died. Even if he had life insurance, there is no guarantee that the life insurance proceeds would be used to pay the debt (for example, the policy could name your ex-husband's parents as the beneficiaries; if so, the proceeds would go directly to them...).

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Answered on 5/07/04, 6:00 pm


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