If you want to keep the home, you’ll be able to do so. If you want to give it up, that can happen too.
Let’s say ex-husband files bankruptcy. He can surrender his liability on the mortgage. He is now off the hook for mortgage payments. Ex-wife is still on title for the home, so she’d better work out payment arrangements with the mortgage company, or the mortgage company will foreclose on the property.
Let’s say that ex-wife files bankruptcy. She can list the home as an asset, but she can also list that it has no value because there is still a mortgage attached to it (just one that she isn’t liable for). If she wants to walk away from the home, she can let the ex-husband know, and he may need to go bankrupt on his mortgage liability.
However, if the divorce decree says that he must keep current on the mortgage payments, then he’d better keep making those payments or he may be in violation of the state court divorce decree.
This is not legal advice. If you need help go to www.robertspaynelaw.com.