My wife and I are getting a divorce and we are splitting up the accounts we owe, she is to pay a loan we have and I am going to pay our 2 credit cards. We are outlining this in the divorce.
What happens if she does not pay the loan?
All the accounts are in both our names.
If the accounts are in both your names, you are both equally responsible for the debt. If your ex does not pay the payments, the bank or lender could and probably will look to you to pay.
In addition, any missed payments or arrears, could also be reflected on your credit history, lowering your credit score.
The contract for loans or credit cards does not change even though you may outline who pays what in your divorce. The original contract for the loan supersedes the divorce agreement.