What to know about liens and divorce

On behalf of The Walters Law Group, Ltd. posted in Divorce on Sunday, January 19, 2014.

Sometimes, when someone fails to pay debts, a lien is placed on a home to establish it as collateral as the debt collection is attempted. Chicago divorcees may be interested in the case of a woman who asked a debt advisor about removing a lien on the home she had previously shared with her ex-husband. The lien was placed because the woman’s ex-husband was behind in child support and alimony payments to his previous wife, and the home was marked as collateral.

According to the advisor, once a lien has been placed on a piece of property, it cannot be removed unless the debt is paid. This lien generally remains on the property, even if the debtor’s name is removed from the title. It can be difficult to refinance or sell a home that has a lien placed on it.

However, there are ways that divorced homeowners can work to remove liens. If it was placed by the state’s Office of Child Support Enforcement, owners can often work with the agency in regards to how they can help collect the debt. Things like wages, unemployment benefits or tax refunds can be seized, and other measures can be employed by the state to pay the debt. Doing so would eliminate the property lien.

While an individual may be looking forward to regaining personal and financial independence, he or she may still be tied to family law issues, such as marital property. A divorce lawyer may be able to help streamline the process of property division and provide advice on trying to remove property liens.

Source: FOX Business, “Will Divorce Release You From Home Lien?“, Steve Bucci, January 10, 2014