Q: Am I responsible for a joint HELOC loan after divorce?
I'm in the process of selling a property after a divorce. The divorce decree clearly states that I have no debt, yet there is a HELOC loan taken jointly by my ex-spouse and me. Am I responsible for the HELOC loan repayment during the sale of the property considering the terms of the divorce decree?
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A:
Under Texas law, your divorce decree may state that you are not responsible for any debts, but lenders are not bound by divorce decrees—they are only bound by the original loan agreement. If you signed the HELOC (Home Equity Line of Credit) jointly, the lender can still hold you personally liable, regardless of the decree.
That said, if the property is being sold, the HELOC will typically need to be paid off at closing to release the lien on the property. You may have a right to reimbursement or indemnification from your ex-spouse under the divorce decree if you end up paying any portion of the debt that was assigned to them.
You should review the decree carefully and consult with your attorney to ensure your interests are protected in the sale.
John Michael Frick agrees with this answer
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