The PetNup: The New Prenup Explained

Custody battles aren’t just about children anymore. In recent years, disputes over the custody of pets have become a highly contested subject in divorce proceedings. Our beloved fur babies are like family, so it makes sense that people are willing to go to court for their right to see their furry friends. The frequency of pet custody disputes during divorce has led to the rise of  so-called “pet-nups.” This prenuptial agreement specifically details exactly what will happen to a shared family pet in the event of divorce. Here is everything you need to know about pet-nups.

While we may see our pets as furrier children, the law simply sees them as personal property. As such, pets are subject to the same rules governing the division of property in a divorce. More often than not, a judge will give full ownership to one person in the couple based on who has put the most money into the care of the pet. In more recent years, judges have been willing to look at pet ownership more like child custody and ruled to give “custody” to the person who can provide the best environment for the animal. If you own a pet with your spouse, it is a good idea to work out an agreement for custody or visitation of the pet.

A pet-nup is the best way to ensure that you get to maintain a relationship with your pet even if things don’t work out with your spouse. Divorce attorneys recommend a number of things to include in your pet-nup to avoid stress and heartache over the loss of a pet during the divorce process. Most pet-nups include the right of ownership, any visitation agreements, and expectations for ongoing pet care. A court will typically recognize the right of ownership laid out in a pet-nup, but it will not enforce lifestyle choices like who gets the pet for holidays or specific aspects of pet care. Still, deciding these things ahead of time can alleviate stress between former spouses.

In a pet-nup, you can detail exactly how ownership will go after a divorce. This includes any shared custody agreement (two weekends a month with one partner), visitation agreements, and parameters for how contact between caregivers should be carried out. The ownership agreement can break down financial responsibilities for everyday care, vet bills, and grooming expenses. Many pet-nups can also include holiday visitation schedules and who can watch the pet and where in the event the primary caregiver is unable to care for the pet due to illness or travel.

The pet-nup can also detail the expectations for pet care for the owner(s) of the pet in the event of a divorce. Many pet-nups include a clause binding both parties to abide by the Animal Welfare Act of 2006, requiring specific standards of care to be met in regards to the animal in question. A pet-nup can lay out expectations for grooming, regular vet care, food quality, and even microchipping registration. The pet-nup can include a clause about breeding—if it is allowed or not—and the ownership of any offspring of the pet in question.

Pets are increasingly seen as members of the family and big aspects of our lives. Courts are beginning to view pets less like personal property and more like children when it comes to questions of care and custody. Judges are much more likely to honor pet-nups and assign ownership based on who can provide the best environment and care for the pet than on traditional lines of ownership. If you share a pet with your significant other, a pet-nup can give you the peace of mind you need should things turn south in your relationship.

How Divorce can Affect Your NJ Small Business

Divorce can be messy and difficult for everyone involved: the couple, their family and friends, and, for small-business owners, even their business partners and employees. When a business becomes part of a divorce, owners can end up losing all or part of their business. It can be hard to understand what property is subject to division and how to go about protecting your business assets. The good news is there are legal measures business owners can implement to protect their small business in a divorce. Here is everything you need to know.

If a business is included in a property dispute between two divorcing couples, a few things can happen. If one person owns the business outright or with their partner, they stand to lose part or all of the business through divorce proceedings. If the business owner is in a partnership with non-family members, the financial and business damages can extend to business partners. To prevent a former spouse from interfering with a business, the owner(s) can face debt to keep their full ownership. Even if ownership is not in question, all the ill-will and uncertainty that can come with divorce can distract owners and their employees from the well-being of the business.

As with most legal matters, the best way to protect your business is to be proactive from the start. No one plans to get divorced, but if it does happen it is important to know your business will be protected. Forming your business as an LLC or a C-corporation will allow you to title real estate and other property to the business. Establishing this formal structure will prevent assets owned by the business to be split up during divorce proceedings. A prenuptial agreement can also protect your business during a divorce by contractually binding your spouse from seeking ownership over your business, property, or other assets.

If you are already married, you could create a postnup. A postnuptial agreement is similar to a prenup but it happens after a couple has already said “I do.” This is an agreement that would designate assets as separate property or outline how the assets would be divided in the event of divorce. If this isn’t an option for you, you should at least get a good idea of what property is considered individually held and what property is shared. Property acquired or grown during the marriage—including your small business—is normally considered marital property, which is subject to division in divorce proceedings. This way, you have a good understanding of what you could lose in a divorce from your spouse.

Even if you are already in the process of divorcing your spouse, you can still protect your business. While most marital property is subject to division in a divorce, you can negotiate in court for an uneven division of property. Obtaining a valuation for the business can help you determine how much the business is worth and how that worth has increased during the marriage. Working with an experienced attorney can help mitigate the time, risk, and some of the stress throughout this process.

Even the most prepared business owner can face challenges when going through a divorce. Having the support and expert legal advice of an experienced attorney can be essential to getting through the divorce process. Veitengruber Law is experienced in asset protection. We can help you protect your small business and avoid this challenging situation.

How to Manage Credit Card Debt During a Divorce

Divorce is complicated. When it comes to divvying out debt, even the most amicably separated couple can find themselves at odds. In New Jersey, you are responsible for any debt in your name—even if your spouse is the one who racked up the bill. It’s easy to become overwhelmed and end up spending buckets of money either paying off your ex’s debts or facing a pile of legal fees. To avoid making a complex situation any more confusing, here are some great money-saving tips for dealing with credit card debt during a divorce.

Deal With Debt Before Divorce

If you’re already facing credit card debt, it could be financially disastrous to add the high cost of divorce to your financial woes. While it may be difficult, your best option is to deal with the debt before you file for divorce. As tempting as it may be to wait for a court to figure out how to divide the debt evenly, you and your spouse will save a lot of money coming to an agreement on your own.

Meet up and discuss exactly what the two of you owe. If you both have your own credit cards, remove the other person as an authorized user from those accounts. Even if you are just an authorized user on an account, your credit can be impacted if your former spouse does not make on-time payments. If you have joint accounts, consider transferring the balance to new cards that you each take out separately. Look for balance transfer credit cards with low interest rates. If you can compromise with your spouse in how to divide the debt evenly, you could save hundreds or thousands of dollars in legal fees.

If You End Up Paying Your Ex’s Debt

Unfortunately, some people don’t have the chance to be proactive about marital debt before a divorce because they only find out about the debt after the fact. If your name is attached to the account the debt is under, you may have no choice but to take responsibility for the debt. You can take steps to getting your name removed from the account, but in the mean time, you will need to make sure the account is getting paid.

In order to protect your credit, you may be stuck paying off debt accrued by your ex. It is important to note that while you can petition the court to have your spouse repay you for these debts, this path is expensive and you may never get the money back—even if you have a court order. This is why it is very important to make sure you and your ex do not share any accounts at the time you file for divorce.

If your ex does not remove your name from an account willingly, you will need to get a lawyer to prove you did not know about the account and did not benefit from the loan. If you do end up being responsible for paying off a portion of this debt, kept diligent records of your payments. If your ex decides not to pay their part, you will be able to prove that you have a history of making good on your payments.

Work on Creating Good Credit Post-Divorce

Whether you are facing the arduous task of building your credit from scratch or working on paying off debts accumulated in your marriage and subsequent divorce, you will need to generate a solid plan to rebuild your finances. Create a list of your debts to determine how much money you can afford to put towards each debt every month. Your new budget will need to absorb living expenses as well as any debt you are responsible for after the divorce.

It can be difficult to adjust to life under one income instead of two—especially if you are struggling under the weight of credit card debt. Veitengruber Law’s experienced financial legal team can help you come up with comprehensive debt-relief solutions catered to your specific needs. Managing debt during and after a divorce can be complicated and stressful, but you don’t have to do it alone. We can help you make a plan to eliminate burdensome debt so that you can start to move toward financial health.

Tips for Estate Planning After Divorce

Getting through a divorce can be rough. Divorce is expensive, time consuming, and emotionally draining. While it might seem daunting to add another task to the list of decisions you need to make, re-working your estate plan after a divorce is very important. While a divorce is ongoing, your current spouse will maintain some rights. Your goal is to keep as much control over your assets while still meeting your legal obligations. After divorce, it is a good idea to go through your estate plan and make necessary changes. Here are five important estate planning changes to consider after a divorce.

1. Health Care Proxy

Your health care proxy is the person who will be making big health care decisions for you in the event that you become incapacitated. By default this is often your spouse, but you may even have a signed health care proxy indicating your spouse as the person in charge of these decisions. You should change your health care proxy as soon as you can to ensure someone you truly trust is making these major medical decisions for you.

2. Power of Attorney

A power of attorney allows someone to act on your behalf for all legal or financial matters if and when you cannot do so yourself. If you had an old power of attorney document naming your ex-spouse, you should get it revoked and if necessary provide notice to your ex-spouse. You will also want to execute a new power of attorney wherein you name a relative, trusted friend, or legal advisor as your designated agent for your assets. Especially if a divorce is not amicable, you will want to do this as soon as possible.

3. Guardianship

This can be tricky. In the event of your death, your ex-spouse would very likely become the guardian of any minor children you share. You can choose to name them as the guardian in your will, but if there is a question of your ex’s fitness as a parent, things can get a little more complicated. You can name someone other than your ex-spouse as the guardian of any minor children. However, should your former spouse seek custody after your death, your designated guardian will need to prove in court that the ex-spouse is unfit. This often means leaving behind a sum of money for your designated guardian to cover litigation costs.

4. Will and Trustee

If you do not want to leave anything to your former spouse, it is important to remove the provisions for such from your will. If your ex is listed as the executor or trustee of your will, you will need to change this. You need to make sure he or she does not receive any of your assets and has no control over your will once you’re gone. In addition to this, if you are designating a minor child as the recipient of any of your assets, your ex will have control of your child’s finances until they turn 18. To avoid your ex-spouse gaining access to this money, you should set up a revocable trust naming someone of your choosing as the trustee to access these assets on behalf of your children.

5. Beneficiary Designations

People often forget about their beneficiary forms. Make sure that your 401(k), IRA, and life insurance beneficiary designation forms are consistent with the terms of your divorce agreement. If you do not make these changes, it can lead to litigation troubles for the person who should be receiving these benefits in the event of your death. Even if you still want your former spouse to remain the beneficiary, you should update this designation after the date of divorce and leave a letter explaining your intentions.

If you have recently gone through a divorce, one of the first things you need to do is get your divorce agreement into the hands of your estate planner. They will be able to ensure you are meeting your legal and financial obligations to your former spouse while still protecting your assets. Veitengruber Law provides full asset protection and estate planning services, and our personalized strategies can help you plan long-term for all stages of life.

After Divorce: Should I Refinance my Home?

Despite divorce rates falling steadily over the past few decades, it remains a strong possibility than a once happily married couple might decide to split up. When divorcing, one of the most confusing and contentious issues a couple faces (aside from custody battles) is often the matter of deciding what to do with the family home.

While the most advisable course of action may vary somewhat with each situation, it’s always vital to make any discussions about the mortgage front and center. Your home is likely your biggest shared asset, and your decisions about the mortgage will impact both of you for many years to come.

If your ex will be the party taking possession of the marital home, remember you will be liable for your shared mortgage until the home is sold, the mortgage is paid off in full, or your ex refinances to remove your name entirely.

You see, removing your name from the title of the home does not absolve you of legal responsibility for the mortgage! This is a common misconception that has resulted in financial harm for countless divorced homeowners. As long as your name remains on the mortgage, your credit is at risk for substantial, long-lasting harm.

If you’re the party remaining in the home, you’ll probably be required to buy out your spouse’s share of the home’s equity. Refinancing your home will allow you to take out a cash portion of that equity to use as you wish—including paying off your spouse so they no longer have any claim to your home.

For example, let’s say that Amy and James purchased a $450,000 home together while they were married. Their outstanding mortgage balance now, at the time of their divorce, is $300,000. The remaining $150,000 is their shared equity in the home. If their divorce terms state that Amy and James are splitting their assets 50/50, Amy would have to come up with $75,000 to buy James out of the home.

Unless Amy has a suitcase full of cash lying around (or a healthy retirement fund), she’s going to want to refinance the home in her own name with a cash-out agreement, then use cash from the home’s equity to pay James what he’s owed. Afterward, she can transfer the home into her name alone.

If you’re like Amy and you want to buy out your former spouse, your first step toward taking sole ownership of the property is to figure out the exact amount of your share of your home’s equity. Here’s how to do it:

1. Find out the home’s current value.
2. Subtract your outstanding mortgage balance from this number.
3. Calculate your percentage of the remaining equity based on the terms of your divorce agreement.

In order to determine your mortgage balance, ask your lender for a “payoff” total. This figure, once balanced against any equity lines of credit, second mortgage, or outstanding debts against the property, is your balance.

Now, your portion of the equity depends on the terms you’re able to negotiate in your divorce settlement. This usually hinges on factors like whether the two of you purchased your home together, whether the home has been paid for equally since it was purchased, and whether or not the home is covered by a prenup.

Of course, paying off your ex and securing sole ownership isn’t the only good reason to refinance after a divorce. You might choose to dip into your home’s equity to give yourself a cash cushion as you navigate the first 6 – 12 months of financial independence, or you might be better served by using some of these funds to pay off high-interest credit cards. Your circumstances will dictate the wisest use of these funds, so do consider your overall financial situation while you make this decision.

If your mortgage was first secured before 2008 and you haven’t refinanced recently, you stand a good chance of being able to lock down a lower mortgage payment. Interest rates are significantly lower than they were before the recession, even taking into account the spike in rates over the past few years.

When considering the overall trend toward higher interest rates, this is probably a good opportunity for you to exchange an adjustable-rate mortgage for a lower, fixed-rate mortgage. While the initial low cost of an ARM is appealing, the inherent uncertainty may not be the best option for you in the years to come. Consider the cash flow you can expect post-divorce, and calculate whether or not you could adapt to a higher interest rate if rates continue to climb for the next decade.

Although divorce is stressful at best and often utterly heartbreaking, it’s also an opportunity to take control of your finances and position yourself for a healthy, fresh start. Take care of yourself throughout this process, and try to keep your emotions at bay while you are making these crucial decisions.

Properly tending to your post-divorce financial well-being will require you to be savvy, focused, and optimistic in the face of adversity. Taking the time to educate yourself on how your mortgage functions as the cornerstone of your financial security will serve to empower you to use your mortgage to serve your own financial goals.

Will I Lose my Alimony if my Ex Files for Bankruptcy?

When it comes to the complexities that come with divorce, most divorced couples find that one of the most stressful aspects is – you guessed it – money. Both parties will feel the effects of their divorce in the two places it hurts most – the heart and the wallet.

Regardless of how intertwined you and your (soon to be ex) partner kept your finances when you were married, going from living on two incomes to scraping by on one is never easy. This is especially true if you are the spouse who makes less money, was a stay-at-home parent, or have been otherwise dependent on your partner financially.

If your marriage resulted in children and they’ll be living with you after the divorce, you’ll be able to benefit from child support payments from the non-custodial parent.

Children or not, you may also benefit from alimony in order to help you maintain the quality of life you enjoyed while married.

In theory, the concepts of child support and alimony can help a newly single parent stay out of debt and continue paying all of the bills on time. The reality, of course, is that not every person will come through with the payments – for a number of potential reasons. A big question on many splitting couples’ minds is:

What Happens if my Ex Files for Bankruptcy?

Prior to 2005, filing for bankruptcy in New Jersey could help lower the amount of child or alimony support an ex-spouse had to pay each month. Luckily, amendments made in 2005 to the Bankruptcy Code set stricter enforcements into place to protect individuals who are entitled to domestic support obligations.

In Section 523, the U.S. Bankruptcy Code delineates that “domestic support obligations” are not dischargeable when an individual files for bankruptcy. In addition to alimony, “domestic support obligations” also include child support and money owed to the petitioner’s former spouse, child, legal guardian, or the government.

The spouse entitled to receive support may understandably be quite nervous if the other party files for bankruptcy after their divorce. Because of the 2005 amendments, the receiving spouse doesn’t even have to file a claim with the Bankruptcy Court.

What About the Automatic Stay?

As soon an individual files for bankruptcy, all creditors are obligated to stop collecting debt money. This is known as an automatic stay. The collection of alimony or child support does not fall under the enforcement of an automatic stay; rather, it is held in higher priority under the Bankruptcy Code. In other words, before any other debts from creditors are considered, alimony and child support need to be paid.

There is no difference between Chapter 7 and Chapter 13 bankruptcy when it comes to alimony. Individuals who file for either chapter are still required to pay (in full) any alimony and/or child support obligations.

Are There any Exceptions?

There are two very specific situations in which “alimony” can be discharged in bankruptcy.

1. Sometimes, a divorce decree states that one spouse has a monetary obligation to be paid to a spouse, and it is mis-labeled as “Alimony.” If it is determined that the obligation is not actually alimony, then it can be discharged. For example, the divorce decree may state that “Husband shall be responsible for $10,000 of a debt accrued during the marriage (often credit card debt).” At times, items like this can be labeled incorrectly as alimony, when in fact, it is completely separate from alimony. Once this monetary obligation has been legally determined as “non-alimony,” it then becomes dischargeable.
2. The second exception occurs if an individual has a monetary obligation to a third party. For example, Bob and Mary Jones divorce, and Bob is required to pay Mary $1000.00 per month. Bob decides not to pay the alimony, so Mary assigns her father the responsibility of collecting the alimony. Mary still needs the money and her father distributes it to her, but there is no record of that. Now that Mary’s father is responsible for collecting the alimony, if Bob files for bankruptcy, the order to pay alimony can be discharged since it was assigned to a third party.

Help with a New Jersey Bankruptcy

If your ex does file for bankruptcy, they may be granted forgiveness of other debts like credit card debt, or past utility bills.

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TO BE CLEAR: It is not possible for your ex to file for bankruptcy in order to get out of paying domestic support. They can file for bankruptcy, but they cannot discharge child support OR alimony.

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Paying alimony or being entitled to receive alimony while filing for bankruptcy can be a sticky situation for all of those who are involved. Rifts between family members can occur, and they normally don’t end well.

If you are the person filing for bankruptcy, work with an experienced NJ bankruptcy attorney rather than trying to go it alone to ensure that all of your obligations are being met. In the end, it will be well worth your investment of time and money.

Estate Planning Challenges: What Happens When Your Ex-Spouse Dies?

Getting married for a second or third time can bring a lot of joy, but it can also present new challenges, especially regarding how your estate plan financially affects current and former family members from your past marriages.

An important part of estate planning is understanding under whose ownership certain assets and property are currently held, as well as how they will be allocated in the future. Updating all of your account titles and designations, such as beneficiary designations on retirement accounts and insurance policies, is a must after a marriage, whether it be marriage number one or marriage number five.

Be sure to put all of your intentions in writing, so that there are no questions about what assets are to be distributed to children from your current vs. previous marriages. For example: if you want your current family to inherit your house, you’ll need to change the names on the legal documents associated with your home. If real property is not transferred correctly, your family may become homeless or experience unintended hardship after you or your spouse dies.

Alimony is a legal obligation for one person to financially support an ex-spouse after divorce in order to maintain the lifestyle that was experienced during the marriage. As part of a divorce agreement, a judge can order for alimony to be awarded, but it must be in accordance with any state laws. When an ex-spouse dies, a financially difficult situation can arise if you rely solely on alimony for income. In an unfortunate situation like this, it is typical that your alimony payments will discontinue unless your divorce decree specifically states otherwise. You may, however, be able to file a claim with the court against the estate of your ex-spouse to receive any unpaid alimony.

The estate of your ex-spouse will go through the probate process when he or she passes away. The administrator that is appointed to oversee the estate will pay any remaining debts and allocate assets to the beneficiaries. If your ex-spouse was indebted to you for past alimony or other monies, you will become a known creditor to their estate and can therefore submit a claim for said funds that are owed to you.

Although it makes perfect sense, the concept that alimony does not typically continue once an ex-spouse passes often isn’t given much thought until the time comes. You may very well need to discover new ways to supplement your income once alimony payments cease, so it is best to be prepared for this.  Many couples, especially those who have children together, elect to include each other in their respective life insurance policies as the beneficiaries. This will ensure that the surviving ex-spouse and any children from the marriage will be cared for adequately.

If you are considering tying the knot for a subsequent time, there are many important aspects of estate planning and beneficiaries that you should have a solid understanding of. This will eliminate or lessen the amount of confusion as to what assets stay with or go to each person when an ex-spouse dies. Along with forming an estate plan can come discomfort, but having a plan in place can bring peace and comfort. To learn more about estate planning if you’re preparing to wed again, reach out to our office with any questions or to initiate a free one-hour consultation.

Divorce Doesn’t Have to Ruin Your Credit Score!

While the act of separating and/or getting divorced from your spouse won’t affect your credit score on its own, it is likely to cause indirect damage to your finances. So, while there won’t be a giant mark on your credit report that says “GOT DIVORCED, automatic 100 point deduction,” your score can and will begin to drop after a divorce if you aren’t hyper-aware of the potential damage.

In order to take proactive steps to maintain a good or excellent credit score during and after a divorce, you first have to know what you’re up against. Some of the biggest factors that cause divorcees financial strife include:

• Suddenly dropping from two incomes to one income
• Joint debt that goes unpaid by your soon-to-be ex-spouse
• Shared bank accounts that can be drained by either party
• Spiteful actions of one spouse, like running up a joint credit card balance
• Lack of an independent financial identity and/or credit history
• Divorce expenses
• Child support and/or alimony

Even if the split is something that will ultimately make you happier, the process of getting to that end goal is undoubtedly going to be stressful. It is much easier to miss a bill payment or make other financial errors when you are stressed to the max.

Why is My Credit Score so Important After Divorce?

Losing a few credit score points shouldn’t make or break anyone, right? In many situations, this may be true. However, for those people who are going through a divorce, maintaining a solid credit score is IMPERATIVE.

You may need to buy or rent, initiate utility services for, and completely furnish a new home. In order to do so, your credit must be fair to good at minimum (ideally in the upper 600s or above).

Additionally, many divorcees seek higher-paying jobs in order to make up for the second income that was lost in the split. These days, it is common practice for employers to check the credit history of all potential hires before extending a job offer. If your score tanks during or after your divorce, it may prove difficult to make even a lateral employment move.

What Can I Do to Maintain a Good Credit Score After my Divorce?

As soon as you know that divorce is in the cards, your first move should be getting a current credit report from each reporting agency. This will allow you to know precisely what debts and recurring payments are officially your responsibility as opposed to your spouse’s.

“Knowledge is power, but only wisdom is liberty.” ~ Will Durant

After you have current credit reports in hand, it’s important that you take smart action based on the information contained in your report(s). For example, you may not have realized that your spouse listed you as an ‘authorized user’ on a credit card. If the card’s balance gets maxed out due to extra expenses during your divorce and your ex-spouse stops making payments, you could be held responsible for the balance. In addition to removing yourself from any joint accounts, you should:

• Create an amended budget using your adjusted spending limit.
• Make it a priority to make all of your payments on time.
• Closely monitor any accounts that you’re unable to separate immediately.
• Get educated on the topic of good financial habits.
• Seek the help of a financial advisor or NJ credit repair attorney, if needed.

 

 

 

 

My Ex Is Using My Credit Cards after Our Divorce!

Unfortunately, divorce almost always brings with it some degree of contention. Regardless of what the former couple disagrees about, it usually comes down to a “he said, she said” type of dispute.

Sometimes, however, there is legal recourse for post-divorce behavior that simply crosses the line. Take, for example, a woman who, upon setting out to clean up her credit report and boost her score, discovered that her former husband had been using her credit cards quite liberally well after they split up.

While, yes, there can be a bit of ambiguity when it comes to using shared cards in the time period after a married couple decides to part but before the Final Judgement of Divorce has been entered, the law speaks loud and clear after the divorce is final.

Any use of your ex-husband or ex-wife’s credit cards (that are in his or her name only) after you divorce is specifically disallowed. In fact, it’s against the law and reeks of identity theft.

Do some married couples use each other’s credit cards while they’re married? They do – even if the credit card in question is not a shared card and only officially “belongs” to one party. This is legal if the non-card-holder is named as an authorized user on the account.

Example: Husband goes out of town for the weekend and leaves his credit card for his wife to use for shopping. As long as she is an authorized user on his account, this is perfectly legal. However, she must sign her own name on any receipts as opposed to forging her husband’s signature.

Even if you’re currently happily married, it is generally considered unwise for you to utilize your spouse’s credit card (that is in his or her name only) if you aren’t listed as a user of the credit card. Some couples do it anyway because most merchants assume that the cardholder gave permission to the spouse to use their card. Simply calling your credit card company and adding your spouse as an authorized user is easy to do and can eliminate any potential problems.

After you are officially divorced from your spouse and are holding the Final Judgement of Divorce in your hands, there should be exactly zero further use of the other party’s credit card. This is true even if you were listed as an authorized user while you were married. Should your spouse forget to remove your name from their authorized users list, this does not in any way mean that you may continue using your ex’s credit after divorce.

An ex-spouse utilizing your credit card falls under the category of a criminal offense: identity theft. It is no different than a complete stranger stealing and using your credit card(s). If this has happened to you, the next step you should take is filing a police report and sending a copy of the police report to the credit reporting agencies. Working with a credit repair specialist will help you get the debt removed from your card and you may even be successful in making your ex pay for the charges.

NJ Mortgage Help for Single Parents

Going through a separation and divorce is never easy, but the complication level increases when you add children to the mix. Establishing a stable family life for your kids is something every good parent strives to do, and divorce can throw a wrench into even the best laid plans.

Supporting the expenses required as a newly single parent is a daunting task as you attempt to maintain as much constancy and normalcy for your children as possible. To that end, the marital/family home is most often where divorced parents elect for their children to remain living.

With that being said, finances don’t always stretch far enough for one parent on their own to pay the mortgage on that family home, along with all other monthly expenses. If both parents are able to pitch in financially to keep the children and one parent in the home, the chances of losing the home are lower. However, the threat of foreclosure for recently divorced single parents is real, and although frightening, it is not something that will go away if you ignore it.

If you are a single parent fighting to keep the home your children have thus far grown up in, you may be overwhelmed by the responsibility of making that monthly mortgage payment on your own. Missed payments are common after significant life events like job loss, illness, death, and, you guessed it – divorce.

The bank will never throw me out since I have young children, right?

Unfortunately, too many people simply give banks and lenders a lot more credit than they deserve. Your bank does not care if you have children, an elderly parent, three sick dogs and a chronic illness – their bottom line is money. You may think, “But there are people working at that bank; surely there is someone there with enough empathy to see that I am struggling.”

While that may be true – of course there are kind people working in banks and lending institutions – they must follow the instructions they are given by their superiors. A mortgage loan that is not being paid on time or at all WILL be sent into foreclosure by the lender. The question is not “If” but “When.”

How can I keep the bank from foreclosing? I just need a little more time!

The best move you can make if you’re in a similar situation is to take action before your home is foreclosed upon by your lender. You may qualify for a loan modification or refinancing. A New Jersey foreclosure and bankruptcy attorney should be the next person you call. Not many attorneys specialize in both areas, so it is important that you work to find a certified NJ attorney who has the experience you need.

Why do I need a bankruptcy attorney? I’m not broke and I want to keep my home.

An experienced NJ attorney who handles both foreclosure defense and bankruptcy matters will be able to stall your foreclosure by using the Automatic Stay. This tactic can only be utilized if the debtor files for bankruptcy.

Even if filing for bankruptcy was not on your top ten list of things to accomplish in life, it is a means to an end that has helped a multitude of people in your exact situation before.

 

Image: “Mother’s Moment” by Leonid Mamchenkov – licensed under CC 2.0