Reply
Established Contributor
electra
Posts: 573
Registered: ‎10-21-2012
0

Assigning debt in divorce

I have 2 collections remaining on my CRs.  One is for a $640 preschool bill w/DOFD listed (incorrectly) as 11/2008 (it's actually 6/2008 or earlier according to their own documentation).    At any rate, I am in CA so SOL is expired.  I sent DV to creditor and they replied back with the original preschool statements (in both my and ex'es names) and with the CA invoice listed as single account in his name only.  They have tacked on $300-ish in interest.  I sent them a PFD, offering to pay the $640.   A lady called me back from the CA and said they would be happy to delete but only for $935 which is the amount they are claiming with interest.  I explained to her that the debt was out of SOL, was in my ex'es name from whom I am divorcing, and was more than I could afford to pay.  She offered a payment plan. I said no thank you I will assign this debt to my ex in our divorce.  (Good luck to them getting a penny out of him.)  I told her to please call me back if they reconsidered.

 

I have a couple of questions about this strategy:

1) How much is this collection hurting my score?  It only appears on 2 of my CRs. It should drop off in a couple of years with no further action on my part. I have one other old collection which is medical and I will be doing the Hipaa process to delete as a tried a PFD and they simply marked me as disputing.  The other things I have on my reports are tax liens so I imagine those are much more damaging.  I'm working to get those off as well.

 

2) Once my divorce is finalized and this debt is assigned to him, can I then dispute it with the CRA's as not mine?  Especially given that the CA's own statement lists it as  a single account in his name?

 

 

Thanks for any advice!!  



Starting Score: TU:584 | EQ 584
Current Score: TU FICO: 711 | EQ FICO 713 | EX (USAA FAKO) 779
Goal Score: 780 across the board


Take the FICO Fitness Challenge
Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008
0

Re: Assigning debt in divorce

 Creditors care little about divorce and what was assigned to whom.  That is only for the divorce court to decide who pays what.  If  there was joint debt, say like a CC, unless one of you are removed from the account, you are both equally liable.  Community property states are worse when it comes to debt.

Established Contributor
electra
Posts: 573
Registered: ‎10-21-2012
0

Re: Assigning debt in divorce

Thanks Guiness.  I'm not so much worried about the CA coming after me as it's out of SOL.  It's more that I was wondering if the debt is assigned to my ex in the divorce and as well their own reporting shows it's a single account in his name, can I dispute it with the CRA's as not mine?



Starting Score: TU:584 | EQ 584
Current Score: TU FICO: 711 | EQ FICO 713 | EX (USAA FAKO) 779
Goal Score: 780 across the board


Take the FICO Fitness Challenge
Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008
0

Re: Assigning debt in divorce

If it is only in his name, unless you are in a community property state, it would only be on his CR.

Established Contributor
electra
Posts: 573
Registered: ‎10-21-2012
0

Re: Assigning debt in divorce

CA is a community property state.



Starting Score: TU:584 | EQ 584
Current Score: TU FICO: 711 | EQ FICO 713 | EX (USAA FAKO) 779
Goal Score: 780 across the board


Take the FICO Fitness Challenge
Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008
0

Re: Assigning debt in divorce

If he acquired the debt before the marriage it is his alone.  If it acquired after marriage you are both responsible for it.

 

 

Established Contributor
electra
Posts: 573
Registered: ‎10-21-2012
0

Re: Assigning debt in divorce

Anybody have any guess as to how much this one is hurting my score?  I would imagine not much given it's 5 years old and I have another collection (also old) as well as tax liens.  My inclination is to let this sit while I work on removing the tax liens and the other collection.  If I'm successful with those and this is the only remaining then I'd consider paying more to delete.  Perhaps they will reconsider my offer and call me back?



Starting Score: TU:584 | EQ 584
Current Score: TU FICO: 711 | EQ FICO 713 | EX (USAA FAKO) 779
Goal Score: 780 across the board


Take the FICO Fitness Challenge
Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008
0

Re: Assigning debt in divorce

Valued Contributor
GregB
Posts: 1,670
Registered: ‎05-24-2007
0

Re: Assigning debt in divorce


electra wrote:

I have 2 collections remaining on my CRs.  One is for a $640 preschool bill w/DOFD listed (incorrectly) as 11/2008 (it's actually 6/2008 or earlier according to their own documentation).    At any rate, I am in CA so SOL is expired.  I sent DV to creditor and they replied back with the original preschool statements (in both my and ex'es names) and with the CA invoice listed as single account in his name only.  They have tacked on $300-ish in interest.  I sent them a PFD, offering to pay the $640.   A lady called me back from the CA and said they would be happy to delete but only for $935 which is the amount they are claiming with interest.  I explained to her that the debt was out of SOL, was in my ex'es name from whom I am divorcing, and was more than I could afford to pay.  She offered a payment plan. I said no thank you I will assign this debt to my ex in our divorce.  (Good luck to them getting a penny out of him.)  I told her to please call me back if they reconsidered.

 

I have a couple of questions about this strategy:

1) How much is this collection hurting my score?  It only appears on 2 of my CRs. It should drop off in a couple of years with no further action on my part. I have one other old collection which is medical and I will be doing the Hipaa process to delete as a tried a PFD and they simply marked me as disputing.  The other things I have on my reports are tax liens so I imagine those are much more damaging.  I'm working to get those off as well.

 

2) Once my divorce is finalized and this debt is assigned to him, can I then dispute it with the CRA's as not mine?  Especially given that the CA's own statement lists it as  a single account in his name?

 

 

Thanks for any advice!!  


I'm assuming since this is childcare bill that it was after date of marriage. The only way this debt is not yours is if you finish the divorce and the Date of Separation is before the date the services were rendered. That date would be stated in the Judgement of Dissolution something like "date marriage ended".

 

They can come after you for this regardless of your name not being on the collection and regardless of "how debt is assigned in divorce". The divorce is an agreement between the two of you and the state. Creditors are not involved. The only thing that changes that is when the marriage ended.

 

If the Judgement of Dissolution states that he must pay that bill, you can take him back to court for contempt if he does not. That doesn't help your credit.

 

You can pay the bill and then look for reimbursement during divorce but that gets really difficult. It is easier if you think you will owe him money. Is either person keeping a big asset like a home?

Established Contributor
electra
Posts: 573
Registered: ‎10-21-2012
0

Re: Assigning debt in divorce

No assets. Just debts.  He's a total deadbeat and I am left holding the bag for everything.  :smileysad:



Starting Score: TU:584 | EQ 584
Current Score: TU FICO: 711 | EQ FICO 713 | EX (USAA FAKO) 779
Goal Score: 780 across the board


Take the FICO Fitness Challenge

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}