What is a woman’s liability for her late ex-husband’s debts?
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What is a woman’s liability for her late ex-husband’s debts?
About 10 years ago I co-signed for 2 private student loans with my husband.They were for his medical school degree, which he did not complete. Then 2 years ago, we divorced and in the divorce decree he assumed responsibility for the student loans. He agreed to be “fully and solely liable and to make any loan payments.†He died of alcoholism about 1 1/2 yers ago. About 9 months ago, the bank charged off both loans due to his death but is issuing a 1099-C to me. Since we were already divorced before he died, wouldn’t that exempt me from any loan liability or 1099-C?
Asked on September 25, 2012 under Bankruptcy Law, California
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Good question. Normally an obligation incurred during the marriage of two spouses is still an obligation that both spouses are responsible for to the creditor regardless of what is stated in a marital dissolution agreement as to who is responsible for what debt.
However, in your situation if the student loans that you are writing about are debts that your "ex" ultimately is responsible for per a written marital settlement agreement and judgment, then you should not have to report the "write off" as income for tax purposes even though you have been sent a 1099.
I suggest that to be sure, you consult with a tax attorney on this issue.
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