Divorce decree backs ex-spouse, so refinance

Ilyce Glink and Samuel Tamkin

Q: I got divorced about four years ago. The deed to the house was, and is, in my name alone.

During our marriage, we took out a homeequity loan, and my ex-spouse had to cosign for the loan. Our divorce decree says that I am solely responsible for the mortgage and equity loan payments. It also says that the loan should be refinanced and put solely in my name.

Great, but what if that's not possible? I'm still financially responsible for the repayment of the loan, and I'm fine with that responsibility. But, my ex-spouse continues to threaten and harass me with legal and contempt charges because I have not removed his name from the loan.

He claims that it affects his credit, and in his mind, I didn't fulfill all the requirements stated in the divorce decree. Is my exspouse correct?

A: Yes, your exspouse is correct. You mentioned in your letter that your divorce decree made you, and only you, responsible for the loan on the home. You also stated that the decree requires you to refinance the loan and take his name off the loan.

Try looking at it from your ex-spouse's perspective. Having his name on your equity loan means that loan (with whatever payment history it carries) is still listed on his credit history and reflects on his credit score. If you don't pay on time, then his credit score will take a hit and possibly prevent him from securing a mortgage.

In addition to the financial issues, there's the emotional tie of being attached to a debt from which he no longer benefits (by living in a house that belongs to you). And, frankly, he's still attached to you financially, which he might no longer want.

He has every right to demand that you refinance the property.

Send questions to Real-estate Matters, 361 Park Ave., Suite 200, Glencoe, IL 60022, or contact author Ilyce Glink and lawyer Samuel Tamkin at www.thinkglink.com.