This is the next article in my series on enforcing the terms of a Divorce Decree in our state. My last article discussed removing your name from debts after a divorce. It is important to ensure that one’s name is removed from any debts as not doing so can lead to damaging financial consequences. An experienced attorney can assist you with ensuring that your rights remain protected. This article will address the topic of forcing a sale of assets pursuant to a Decree. If you or a loved one are in need of assistance then contact my office today to speak with a Melbourne lawyer.
As I discussed in my last article, it is common for a Divorce Decree to include terms stating which debts are to be paid by which spouse. The Court will also typically require that each spouse remove the other’s name from any debts. This can include removing a former spouse’s name from a mortgage, from a car note, refinancing and paying off personal loans, etc. If a spouse fails to meet these obligations, then the Court may hold them in contempt. A contempt finding, however, can provide little benefit to a spouse whose credit is being damaged by late payments or an overutilization of credit. It is necessary to ensure that the debt is paid off so that a spouse’s name may be removed.
The most sure way to ensure that a spouse’s name is removed from a debt is to force the sale of an asset. The first step in forcing a sale is to file a Motion (also known as a Supplemental Petition) with the Court. This Motion will cite the part of the Divorce Decree that is being violated (the provision regarding the debt) and will ask that the offending party be held in contempt of Court. The Motion will also ask that the Court force the sale of any assets related to the divorce to ensure compliance. While a Judge will not automatically jump to the option of forcing a sale, they will do so if it appears that there is no other option to obtain timely compliance with the Divorce Decree. How the Court will structure matters will, however, always depend on the specifics of the situation.
Consider the following example. Mike and Mindy divorce. The parties agree that Mike will keep the marital residence, which is worth $500,000 and is secured by a $300,000 mortgage. The Decree requires that he refinance the property to remove Mindy’s name from the mortgage. Mindy will keep the parties’ $200,000 stock portfolio. Each spouse, therefore, leaves the marriage with a net worth of $200,000. Six months later, Mike has not refinanced the property. Due to a difference in interest rates, he cannot do so at a monthly payment which he can afford. Mindy files a Motion with the Court. Given that Mike is unable to refinance the property, and can provide no other options, the Court may force a sale of the property so that the mortgage can be paid off. Mike would likely be permitted to keep all proceeds from the sale under this scenario. While oversimplified, this example shows how the Court may rule in such a situation.
If you are dealing with post-Decree issues, then it is important that you protect your rights as soon as possible. An important first step towards protecting those rights is to speak with an attorney. Counsel will give you an honest assessment of your situation. As a Melbourne divorce lawyer, I am able to assist with such matters. If you or a loved one are in need of assistance then contact my office online or by telephone today. I look forward to speaking with you. My firm also services Florida clients in the Brevard County cities of Titusville, Cocoa, Palm Bay, Grant, Valkaria, and Rockledge, as well as in the Indian River County areas of Fellsmere, Sebastian, Vero Beach, Indian River Shores, and Orchid. We are also able to virtually work with clients throughout the state.