Two signatures on mortgage should protect you, husband during divorce

Q. My husband and I are getting a divorce. We don't have much money so we are doing this ourselves. We have a townhouse we bought 10 years ago.

We originally agreed that I could stay in our home until our child graduates high school, two years from now. I would then have to either sell or refinance the home and we would split the money.

A friend told my husband this is a bad deal for him because if I don't pay the mortgage, the mortgage company could still come after him. I told him we could write something in the agreement that makes me fully responsible but my husband says that doesn't change anything. He is now insisting I either refinance now or sell now.

Can't we write something in our agreement that would protect him if I don't make the payments?

A. No. Your mortgage company has (presumably) two signatures on the note and mortgage and they may elect to pursue either one or both of you as they choose in the event of a default. There is no agreement you can make with your husband that will dissolve his obligation to the mortgage company.

Presuming you have some equity in your property and your husband has the financial ability to cover the payments, your agreement could still work.

In the event you fail to make any payments, your husband could make the payment. You would include a provision in your divorce agreement that provides that your husband be reimbursed for any payments made on your behalf from your share of the proceeds from the sale or refinance.

You could also request the mortgage company remove your husband from the note and mortgage. They would probably only consider this if you could financially qualify for the mortgage on your own.

Q. I loaned $5,000 to a co-worker about two years ago. He was going through a very difficult time due to illness and I felt bad for him. Our understanding was he would pay me back when things got better.

Nothing was signed but there are numerous people that could verify the loan.

Also, the loan was made by check and I have the canceled check.

He no longer works here but he has regained his health and he is working full time. I've called him a few times and he always says he will start paying me back but he never does. It is now dawning on me that he has no intention of paying me back.

He owns a home. Can I put a lien on his house for the money he owes me? What about interest?

A. You are putting the cart before the horse. You cannot lien his home unless you have a judgment against him. The only way to obtain a judgment is to sue him.

The lawsuit could be a bit sticky. You have no evidence that this is a loan and not a gift. In the event he alleges this was a gift, the burden would be on you to prove otherwise. Your only proof would be the testimony of these other folks. If these other folks are your wife and brother, their credibility is diminished.

I would suggest having an attorney send him a letter demanding repayment and threatening suit. This may be enough to resolve your problem.