Legal Question in Credit and Debt Law in Minnesota
Marriage Termination Agreements and Debt Allocation
In my marriage termination agreement signed by both parties, lawyers and the court, my ex-wife was given a vehicle including title and debt free of any incumberance to myself. The loan, however, is in my name. She has not made any payments nor has she secured her own loan for the vehicle since she does not work.
The vehicle loan is about to default and the loan collection agency is refusing to accept the divorce paperwork. I have already disputed the penalties on my credit report.
There is more owed on the vehicle than it is worth. Should it be repossessed, there will still be an outstanding debt on the loan. The paperwork and divorce occured in Minnesota but she and the vehicle are located in West Virginia.
What further actions can I do to protect myself? Suing her makes no sense since she does not have any means to pay. This is further compounded by the fact that I have custody of the kids and she does not have to pay child support because she is not employed.
I have a good, stable job and do not want anything negative to occur to my employment, credit rating or housing since I am the sole provider to my kids.
Thank you for your time.
1 Answer from Attorneys
Re: Marriage Termination Agreements and Debt Allocation
A creditor is never bound by your divorce paperwork. They may rely on their contract. A divorce decree and its provisions is enforceable only between the husband and wife to the divorce.
It is wise to spell out provisions in a divorce to protect in the event that a joint debt is not paid by the party responsible. For example, a provision may included that in such a situation, the other party may force the vehicle to be sold or assume its possession and ownnership. In the absence of such language, your options are limited.
Your only remedy is to seek an agreement from the other party to turn the vehicle over to you opr sell it. You could file a Motion for contempt. However, that will have limited effectiveness if your ex cannot refinance or paty the debt. The court cannot modify the property division.
For Minnesota issues visit divorceprofessionals.com
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