Husband Ordered to Pay Over $23 Thousand – Overturned

October 7, 2013

One of the more common questions I receive is why an ex-spouse is still named as a defendant in foreclosure when their former spouse was given responsibility to pay the mortgage in a divorce action. The short answer to this question is that even though the divorce judge may decide the issue between the spouses, that decision does not take anyone off the loan. So unless the loan has been refinanced or modified, both spouses are still legally responsible to the bank in a foreclosure if the loan falls behind.

As I do not provide any family law or divorce guidance, I have yet to see any insight on how former-spouses could resolve this problem between each-other, until reading Austin v. Austin, Case No. 1D13-1766 (Fla. 1st DCA Sept 13, 2013). Interestingly, this divorce action was between two attorneys who were partners in a law firm based in Jacksonville, FL.

In the trial court, the Judge ordered the husband to liquidate his deferred compensation fund, his IRA, and his wine collection in order to pay the $23 thousand needed to reinstate the mortgage on the marital home. On appeal, the First District reversed the trial court for certain procedure deficiencies, but the District Court did not seem to disagree that the Former Husband was responsible for funding the reinstatement of the mortgage.

If you have questions about your obligations under a loan, call (727) 538-4188 to schedule your free consultation.

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About the Author

Ziegler Diamond Law: Debt Fighters, provides effective legal services to consumers in Clearwater, Florida, and throughout the Tampa Bay area who are facing home foreclosure, unmanageable debts, debt collector harassment, or other debt-related problems.