Collecting debt owed from divorce

[Jackie1884]

Hello.

My son was divorced in 11/03 in Minnesota.  As a couple they owed me and my wife $16,899.45.  They each are to pay $8449.73.  My son has paid me his portion but I have never received anything from my ex daughter-in-law.  

The divorce states (my son is the Petitioner, I am debt D):
 
"The Petitioner shall pay the A, B, and C accounts.  The parties shall split the debt owed to D therefore Petitioner shall assume and pay $8449.73 and the Respondent shall assume and pay $8449.73 of the D debt."

1. How do I go about collecting from her?  

[socrateaser]

>Hello.
>
>My son was divorced in 11/03 in Minnesota.  As a couple they
>owed me and my wife $16,899.45.  They each are to pay
>$8449.73.  My son has paid me his portion but I have never
>received anything from my ex daughter-in-law.  
>
>The divorce states (my son is the Petitioner, I am debt D):
>
>"The Petitioner shall pay the A, B, and C accounts.  The
>parties shall split the debt owed to D therefore Petitioner
>shall assume and pay $8449.73 and the Respondent shall assume
>and pay $8449.73 of the D debt."
>
>1. How do I go about collecting from her?  

Your rights as a third party were not altered by the divorce judgment. If you have a contract that holds both your son and his ex jointly (and/or severally) liable for the debt, and they are in default on the payment terms, then you can sue them in civil court for breach of contract.

If there is property which secured your loan (i.e., a home or business asset), then you would be able to levy directly against that asset, by foreclosure or execution and public sale or garnishment of income.

If the loan was unsecured, then you can obtain a money judgment and then attempt to attach some other asset or income of the debtor(s).

You should sue your son and his ex, because this will permit your son to request equitable contribution/indemnity from his ex for her responsibility on the debt. The advantage here is that in some jurisdictions, the failure to pay a debt distributed in a divorce judgment entitles the injured spouse to have the original judgment reformed so as to more equitably distribute the assets and debts from the marital estate.

So, if your ex-daughter-in-law received something else of value in the divorce, your son might be able to attach that something directly, via the court's equitable powers, and obtain either an equitable lien or a constructive trust on the property, and thereby force his ex-spouse to disgourge the money to you.

This would give you a priority lien in the event that the debtor filed for bankruptcy -- and this is something that you could not get if you simply sue your son's ex directly for breach of contract in civil court.

So, while you could avoid suing your son, I think it ill advised, because of the additional leverage that the suit would provide you.

Obviously, if your jurisdiction is one where the court will not disturb the original judgment, then there would be no point to this strategy. But, if it is, then I think my advice is sound.