What Debts Are You Liable For if Your Spouse Dies After Divorce
My question involves a marriage in the state of: CA
My Ex and I divorced in 2009 in Ca. The divorce decree states that the division of the home (owned as husband and wife, both of us on the mortgage) will be reserved for judgement. I lived in the home with the children and made the mortgage payments. In order to refinance with a special program, the ex (who had remarried) quit claimed the deed to me. So he remained on the mortgage with me, but the deed states that I own the home. My ex divorced again in 2013 and died in 2014. He had no insurance or other assets besides the house that I live in. My questions are these:
1. Second mortgage: We had a second mortgage on the house that was discharged when the house was refinanced. It was taken over by a collections agency. We were both on that second mortgage. Do I now owe it all?
2. Credit Card Debt - He had credit cards that we used while married, but I was not on the cards. Our divorce decree states that he is responsible for those debts. They are now in collections. None of this debt was accrued while he was married a second time. Am I liable for this debt?
3. Taxes - He owed taxes for the year before he was remarried (while he was still on the home deed) and the year after he was divorced for the second time (after he quit claimed the house to me). Can the IRS lien the house for any of those taxes?
4. House - There is no equity in the house. If I continue to pay the mortgage, do I owe our children a portion of any proceeds if I sell it in the future and do make a profit?
Re: What Debts Are You Liable For if Your Spouse Dies After Divorce
Quote:
Quoting
Redsonya
1. Second mortgage: We had a second mortgage on the house that was discharged when the house was refinanced. It was taken over by a collections agency. We were both on that second mortgage. Do I now owe it all?
Yes, as should go without saying, you owe all debts that are not fully paid and remain in your name.
Quote:
Quoting Redsonya
2. Credit Card Debt - He had credit cards that we used while married, but I was not on the cards. Our divorce decree states that he is responsible for those debts. They are now in collections. None of this debt was accrued while he was married a second time. Am I liable for this debt?
You have told us that this debt was never in your name. You have not indicated that the credit card companies have ever alleged that you should be held responsible for the debt for any reason. Thus we have no reason to believe that you would be liable for the debt.
Quote:
Quoting Redsonya
3. Taxes - He owed taxes for the year before he was remarried (while he was still on the home deed) and the year after he was divorced for the second time (after he quit claimed the house to me). Can the IRS lien the house for any of those taxes?
If there is a lien on the house to secure a debt, that remains on the house, securing the debt.
Quote:
Quoting Redsonya
4. House - There is no equity in the house. If I continue to pay the mortgage, do I owe our children a portion of any proceeds if I sell it in the future and do make a profit?
You have told us that the house is exclusively in your name. What you choose to do with the proceeds of sale, if and when you sell, is thus up to you.
Re: What Debts Are You Liable For if Your Spouse Dies After Divorce
Thank you so much for your reply.
In terms of the credit card debt, we live in CA which is a community property state. His second wife has provided the credit card companies with my contact info and a copy of the divorce decree so that they know the debt was listed as community debt. Can the collections agencies come after me with that info?
In terms of taxes, there is no lien on the house now. He did not pay his 2010, 2013 or 2014 taxes. His 2011 and 2012 taxes were filed jointly with his second wife and those years are paid. Can they place a lien on the house in the future? Especially for 2010 since he was on the deed during that year?
The deed to the house is in my name but the courts reserved judgement on who it should go to.. Does that matter, or does the fact that he quitclaimed the house to me before his death trump any reserved court judgements?
Thanks again!