Can I do something to save my 401k? Do I foreclose on my house? Why do I have to pay my ex's debt? HELP!

Question

I am selling a house at a loss and having to pay for 40% of my ex's debt on it which is about $45,000. The house has been on the market for 3 years. I took out my 401k in order to pay for closing and she is flat broke ( or so she says). I want this done and over with but is there something I can have written up that she pays me back? I don't want to foreclose and have bad credit? She wouldn't agree anyway. Should I?

She no longer lives there. I can afford the montly obligations of 60% but how much longer do I hold onto this house for? We have a buyer for way less w/ me paying nearly 100k to alleviate the closing. Do I keep it longer and suffer the payments? Renting is not an option. I don't know if she is simply saying she has no money and really does in order for me to just pay it off! I want this over but how can I be saved?

Then my terrible lawyer tacked on in the divorce papers that I owe upon sale of the house 5k- didn't think to say if it doesn't sell at profit

Answer 1

Well, this is not enough info. to work with, but...

What did you do with your 401K funds? Did you use them to buy the house?

Do you have any equity in the house? Why would you add good money after bad by paying $100K to "alleviate" the closing?

Have you talked to a Realtor about doing a short sale on your house - where the bank agrees to take less than the loan amount?

Re: your credit. Forget about that for now and concentrate on surviving this financially! You can take steps to repair your credit later.

Talk to your tax accountant regarding all of this. They can help you understand the credit and tax consequences of any move you make. You may be able to write off some of your expenses. Ask about "debt forgiveness" in regards to foreclosure or short sale and how this affects your taxes.

Your attorney should demand complete disclosure of her finances!

Let me know if this helps!

Answer 2

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Answer 3

you need a good lawyer, end of story. find someone who knows what they are doing and can really help you sort this mess. your ex's finances should be fully disclosed if you have to take on her debt (ie, if she has any money, you need to know).

Answer 4

I am a little confused, but

1) Do not believe your ex has no assets at all. Go to a good divorce lawyer.

2) If you can save your house by cashing in your 401K, do it.

3) When people are married, they are jointly and separately responsible for the debts they take on during marriage.

4) If you get married again, make sure she  has more money than you.