The short answer is yes. But like so many legal matters, further explanation may be required. It is probably best explained using an example. But the thing to remember is that the law, while being subject to interpretation, is a set of words which have a specific meaning. If you sign a legal document, such as a promissory note, agreeing to do something, the law will follow its course. You are liable regardless of a change in your marital status.
A promissory note is a financial document enforceable by law. It occurs when one party agrees to pay another party a certain sum by a certain day or upon demand. If you sign a promissory note you are liable according to the details of the note.
Let's assume a husband signs a divorce decree in which he agrees to give a rental property to his wife as part of their divorce settlement. The court approves this transaction. But the property has a mortgage which is in the name of the husband, now the former husband. So the former wife owns the rental property but her ex owes the bank for the mortgage on that property.
Now the bank is holding a promissory note from the former husband in which he agreed to pay the money he borrowed. The ex-wife not only doesn't have the owner details changed to her name, she defaults on the payments.
Who does the bank come after for the loan repayments? The former husband. Who is liable for the promissory note signed some time ago? The former husband.
So the lesson here is to (a) know that a promissory note is a binding agreement between the signatories to the original document and (b) that any divorce decree which involves a split in or sharing of the assets must have all the responsibilities for the new owner spelt out in precise detail.
In the above case there should have a been a written agreement from the ex-wife to have the tile details changed to her name and to take full responsibility for all monies owed on the rental property.
As the ex husband was being pursued by the bank, he has two options. (a) Persuade his former spouse to make the payments and to continue to do so or (b) return to court and ask the court to force the new property owner to make the necessary payments.
The second way involves time and money; far better to have the deal watertight in the first place.
Another downside here for the former husband is that he could find himself with an adverse credit rating. Technically he has defaulted on the payments and it might be in his long-term interests to make the payments until the matter can be resolved in his favor.
Whatever the outcome, understand that a promissory note remains as is regardless of a divorce and a subsequent change of ownership of property.
Here are additional resources you might be interested in: Community Property States and Taxes Information Property Settlements and the Gift Tax Exceptions Divorce and the Division of Property More information on Divorce Properties and Finances
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