Relationships and Money

[vcejas]

In 2007 my husband purchased a large amount of vacant land.  I asked him many times not to go through with this purchase but he did.  Now we are considering separation and/or divorce and I am questioning how this will effect my credit. If he doesn't pay or defaults on the loan, will that effect me personally even though my name is not on the mortgage????

[LIGHTNIN]

Hi and Welcome to the forums

Your name isn't on the mortgage so it will not effect your credit.

Did he buy the vacant land solely by himself ? If yes, then whatever he does reflects his credit only.effected.

Your credit only reflects what is your name on your credit report.

Have you pulled your recent credit reports?

[GregB]

I wish it were that simple. Lightnin is probably correct for the immediate future that the mortgage will not appear on your credit reports since your name is not on the mortgage.

However, if he defaults the lender will certainly look for the money from anywhere it can legally get it. They could even add negative info to your reports in an attempt to get money even though you could fight it successfully.

The laws regarding the ownership of the debt will vary widely by state. You might be responsible for the debt even if you didn't sign anything and your name is not on the mortgage. Two people that are married are jointly responsible for each others debts more often than you might think.

[O6]

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LIGHTNIN wrote:

Hi and Welcome to the forums

Your name isn't on the mortgage so it will not effect your credit.

Did he buy the vacant land solely by himself ? If yes, then whatever he does reflects his credit only.effected.

Your credit only reflects what is your name on your credit report.

Have you pulled your recent credit reports?

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I wish it were that easy. 

There are many factors to consider not the least of which is whether they are in a community property state or not.  If in a community property state, if and when the spouse defaults, CAs can go after the other spouse and / or they can be sued.  If either of these things happen, it most certainly can find it's way onto credit reports.

[LIGHTNIN]

GregB and O6 you are exactly correct, I was only thinking of her CR's,But long term she can be held legally responsible for this debt.

For a teachable moment here, OP'er has not signed on since the 1st post, so I'm thinking her next question maybe....

If they do divorce, and the courts say that" he is solely responsible for this debt" That does not still get her off the hook, correct? 

Thank you in advance to those who reply, Lightnin

[O6]

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LIGHTNIN wrote:

GregB and O6 you are exactly correct, I was only thinking of her CR's,But long term she can be held legally responsible for this debt.

For a teachable moment here, OP'er has not signed on since the 1st post, so I'm thinking her next question maybe....

If they do divorce, and the courts say that" he is solely responsible for this debt" That does not still get her off the hook, correct? 

Thank you in advance to those who reply, Lightnin

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You are, unfortunately, correct.

A separation agreement, divorce settlement or divorce decree can virtually never adjust one's contractual liability with a pre-existing creditor.  The reason I say you are unfortunately correct is because a great many people think that "Oh, the judge said I don't have to pay that account" and then in the end are shocked to find the creditor drawing blood from them.