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Sticky divorce questions in Tennessee

When a husband and wife divorce, an agreement that they enter into that provides for the division of their assets is called a property settlement agreement. Some states have different names for this agreement such as property settlement, separation agreement, or property agreement. The laws regarding property settlement differ in each state, no matter whether the divorce is in Clarksville, or Montgomery, Tennessee, or in another state, the property settlement decree is meant to be followed if possible. Property division is looked upon seriously by the courts. That said, there could be extenuating circumstances.

If a spouse, who has been divorced, owns property, which is mentioned in a property settlement agreement, they may be ordered to refinance the property. If the spouse then files bankruptcy, they may find it hard to refinance. Often the other spouse is upset if the refinancing is not done as stated because the refinancing was to remove their name from the title and mortgage. This eliminates the other spouse's liability from mortgage payments, and it means they are not legal owners of the property.

Sometimes after divorce and after bankruptcy, it may be hard to refinance, especially with today's current economic climate. More may be owed on the house than it is worth, or since the household is now just a one-income household, the lender may not see fit to justify a loan. In these cases, the spouse who is awarded the property in the property settlement agreement cannot refinance no matter how hard they try.

If someone willfully does refuse to refinance, and it can be proven that they can refinance, a family law court may find them in contempt of the order to refinance. Usually a court will not find in contempt if refinancing is just not possible. Disputes over equitable property division are often problematic during and after a divorce. Talking to an experienced divorce attorney can answer many questions about divorce and marital property.

Source: Fox Business, "Ex Won't Refinance to Take My Name Off House", Justin Harelik, December 04, 2013