Legal Question in Family Law in Virginia

Re: Legal separation or divorce

If you were also on the Note you are still responsible for repayment of the loan despite any agreement you may have reached with your ex... WITH OR WITHOUT a court order.

Sincerely,

Re: Legal separation or divorce

Just signing the PSA does not convey title to the house. You would have had to convey your interest by deed to your husband and have it recorded in the local land records. You are probably still on the hook when it comes to the foreclosure. Hopefully your property settlement agreement allows you some recourse against your husband.

Re: Legal separation or divorce

You should consult with a Virginia attorney concerning the application of the law to the facts of your particular situation. The following is general legal information on the apportionment of marital debts, including a mortgage loan.

A husband and wife may agree to divide the marital debts in a certain way, with each spouse taking responsibility for paying particular debts. A spouse assuming a debt may further agree to indemnify and hold the other spouse harmless for any default in payment of that debt. This agreement may be incorporated into a final decree of divorce and enforceable through the court's contempt powers.

The creditor to a joint debt, who is not a party to such an agreement, is not bound by any agreement between the co-debtors, whether such agreement is part of a divorce decree or not. The creditor may pursue either or both spouse for full satisfaction of a joint debt, regardless of any agreement between the spouses or the entry of a divorce decree.

When a spouse agrees to transfer his or her interest in real estate to the other spouse, it is usually wise to require the other spouse to refinance the debt so that only the other spouse holding title is liable on the mortgage debt.

A mortgage loan consists of both a personal obligation to pay the loan, evidenced by a promissory note, and a security interest in real estate, evidenced by a deed of trust or a mortgage. In the event of a default, after giving the notice required by law, the lender may sell the real estate at a foreclosure sale auction. The trustee is responsible for accounting for the proceeds of the sale, and crediting the note with any money left after real estate taxes, fees and costs of sale are paid. Unless the loan was set up as nonrecourse financing, the noteholder may then sue the borrowers for a deficiency judgment - the amount still owed on the promissory note.