Expert: Regan Shinski - 2/2/2010

Question
QUESTION: We divorced in az a community property state.  The mortgage is in both of our names but my wife is keeping the house and making the payments.  I read that any debt she incurs after the divorce, if it is to maintain joint owned debt, such as repairing a leaky roof, etc, that they can come after me for this debt.  Is this true?  Even if I do a quit claim deed and no longer am an owner of the house?  I realize I am still on the mortgage and liable for that if she doesnt pay it, but am I liable for future debt like that?

ANSWER: As you stated, you can be liable for anything contractually linked to the mortgage.  This can be taxes, insurance, late fees, mechanics liens, and related debts.  Secondly, you are obligated to anything stated in the divorce decree, so be sure to search the papers.  Rarely, you can be on the hook for any verbal agreement with your ex-wife.  In general, the verbal agreement can never supercede or change any written agreement.  Finally, you would be liable for any contract - verbal or written - between you and any third party servicing the house.

So in the case of the leaky roof you are liable if your mortgage holder forces or completes the repairs as part of your mortgage contract, it is part of your divorce papers, if you are contracted in some way to the roofing contractor, if a verbal agreement outside the contract of the divorce papers is made between you or your wife, or if a lien is placed on the home.

I hope this helps.

Good luck,
Regan

---------- FOLLOW-UP ----------

QUESTION: The divorce decree actually says she is responsible for mortgage and all expenses related to it so would that get me off the hook for say a house repair she financed and didnt pay?  Also, can we just decide to file bankruptcy?  If we both decided it was best to do just file bankruptcy and were both in agreement with it since we are both going to struggle to pay our bills and we both would pass the means test can we have our marital debt dishcarged in ch 7 despite divorce decree stating well each pay certain debt?  I talked to her and she would like to file bankruptcy also.

Answer
The decree says she is responsible for the mortgage, but the mortgage lender doesn't care what the decree says because they have your signature on a paper saying you are jointly responsible for it.  This comes into play because the contractor may be able to file a lien on the house and it then becomes your issue as well - especially if the home ever becomes foreclosed on.

You guys can file bankruptcy, but depending on the value and debt amounts on the house, you may not be able to keep it.  The lien issue also comes to play here as mentioned above.

Good luck,
Regan