Legal Question in Wills and Trusts in Massachusetts
Debt questions
My husband has accrued in his name 27K worth debt in credit cards. He wants to remortgage - I am thinking about divorce. He said if we remortgaged he would put the house in my name. We talked about divorce a few years back he said he would give me 40% of home and he would take 60% but not touch my 401K worth about 90K - I'm afraid his credit card people will put lien on our home. My questions is should I divorce now or would it be to my advantage to divorce after remortgage. If anything happend to my husband I couldn't afford to pay for the home myself. Depb on home 125K house valed at about 180K
Thank you for your advice
2 Answers from Attorneys
Re: Debt questions
As a general rule, you should NEVER refinance credit card debts into your home. This is because credit cards are unsecured loans and when you refinance, you are converting an unsecured loan into a secured loan (mortgage), backed by your home. If you ever were to default on a credit card payment, they cannot take your home away from you. However, if you ever defaulted on your mortgage payments, they can foreclose and take your home away.
Secondly, if all the debt is in his name and he used it exclusively for himself, you should not roll it into the marital home, which you will split in the divorce. You are in essence taking over his debt which you would not take on if they were kept on his credit cards.
Lastly, if you are already thinking of divorce and you are emotionally separated from your husband, it is time to move on. Marital assets can be worked out during the divorce but should not be a reason why two incompatible people should stay together.
Give me a call if you need an attorney for the divorce.
Re: Debt questions
Refinacing to pay credit card debt is generally a bad idea. As to the division of marital assets that is a different issue.
As to the credit card companies putting a lien on your property, I will assume the home is owned as tenants by the entiriety so they can't do much until there is actually a divorce. Also, if you have not filed a homestead exemption you should do so now.
You have many alternatives too many to go through here. If you wisht to discuss your options please feel free to call me.
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