Re: Credit repair after divorce.
11-03-2009 06:18 PM
As a cosigner on the loan, if she defaults, you are still liable in the eyes of the lendor for the default itself until such time as you raise a legal defense based on terms of your divorce decree. If they bring legal action and name you as a defendant, the specific terms of your divorce decree will be used to determine your liability. I would get a lawyer ASAP.
From a legal standpoint, it is virtually impossible for the terms of a divorce decree to bind a creditor on a pre-existing debt. It is well-settled legal principle that a creditor has recourse against both parties irrespective of the terms of any divorce decree or settlement agreement. The injured spouse, however, has recourse against the other spouse.