My question involves a marriage in the state of Michigan:
Before getting married I lived with my wife for 2 years in a condo. Due to a previous divorce, my credit was not worthy of getting a mortgage. She purchased a house completely in her name with the thoughts we may get married and raise a family there. We did get married 2 years later and the mortgage remained in her name as we were working to rebuild my credit. We are now getting a divorce and are looking at approximately $80 - $100,000 in negative equity. She wants to stay in the house but is concerned about the negative equity.
I have two questions.
1) If she owned this property prior to marriage, does that release my obligation for the debt?
2) If she stays in the home for now but sells short in the future, is their any chance I will be responsible for a portion of the loss?