What effect does a dissolution of marriage have on a third party creditor?
A decree of dissolution of marriage provides for a termination of the marital relationship as well as a division of the marital property, including both assets and debts. This decree is binding upon the parties to the dissolution action. The failure by one party to comply with its terms may result in that particular party being held in contempt and subject to certain sanctions and penalties imposed by the Court.
However, a decree of dissolution is not binding upon a third party creditor as said creditor is not a party to the dissolution of marriage proceeding. A third party creditor may still elect to pursue its collection and enforcement remedies despite what is contained in the decree of dissolution. Thus, the third party creditor may pursue appropriate remedies against any party with whom it has a contractual relationship and is not bound to follow the terms of the decree of dissolution which has been signed by the parties.
If you have any questions about the dissolution of marriage in Boone County, Kentucky, contact one of Busald Funk Zevely’s family law attorneys today.