If you are contemplating divorce, if you are sure that
you will be pursuing a divorce, or if you are ready to begin
a divorce, Attorney Kathleen Reiley can help you protect
your financial health. Even if you move out of the family
home, until such time that a legal separation is ordered
by a court, the financial obligations of the marriage upon
each spouse remains unchanged.
Wisconsin law has undergone changes regarding the financial
obligations of spouses. You should consult with a divorce
attorney regarding your financial obligations.
Credit Cards
If I am separated from my spouse, and my spouse
runs up a huge credit card debt, am I responsible for that
debt?
In most situations, until such time that a
court orders a legal separation, both spouses are responsible
for any debt incurred.
Credit Reporting
If I am legally separated, and my spouse fails
to pay credit card debt, will it be reflected on my credit
reports?
In most situations, until you are divorced,
and then sometimes even after divorce, credit bureaus will
report married person's debts. If the debt is incurred after
divorce, it may still be reported, but in some situations,
it then can be removed or a notation can be added to the
report identifying the debt accordingly.
In part, Wisconsin law was created to provide
both spouses with the benefit (or the detriment, as the
case may be) of credit reporting.
Debt Relief
If I am separated from my spouse and my spouse
wants to file bankruptcy, will it affect me?
If a bankruptcy is filed jointly, it will
be reported on both spouse's credit report. If a bankruptcy
is filed individually, it should only be reported on the
credit report of the individual filing the bankruptcy, however
there are situations in which it may be legally reported
on both spouse's credit reports. You should discuss the
situation with your attorney.
Loans
My spouse and I are separated. Can my spouse
take out a loan without my knowledge?
Under Wisconsin law, if your spouse takes
out a loan during the marriage, then the company providing
the funding of that loan is required to notify you that
a loan was made. The same applies to credit cards. However,
if you have moved from the family home, which occurs with
a legal separation, and if you did not enter a change of
address, then you may not receive the notice. The notices
are mailed to the same address as the spouse absent any
other notification.
Home Mortgage Loan
My spouse and I purchased a home, which was
awarded to me in the marital property settlement agreement.
The loan is in both of our names. Can I just the marital
property agreement to the mortgage company and have the
mortgage changed to my name?
No. A marital property settlement agreement
is an agreement between two spouses regarding their property.
It is not an agreement with the mortgage company. When you
purchased your home, you and your spouse made an agreement
with the mortgage company to pay them a sum certain with
interest. Not only did your mortgage agreement precede your
marital property settlement agreement, but your agreement
with your spouse does not affect an agreement made by and
between you (as a couple) with the bank (as a commercial
lender).
If order to change the mortgage obligees,
you must refinance the mortgage. In other words, you need
to form a new agreement between you, as an individual borrower,
and the bank, as the lender.
Call Attorney Kathleen Reiley (608-246-8309)
or send Kathleen
Reiley an email.
