Podcast Summary: The Ramsey Show Highlights
Episode: My Husband Lied About Being $1,000,000 In Debt (That I Know Of)
Host/Author: Ramsey Network
Release Date: June 2, 2025

Introduction

In this emotionally charged episode of The Ramsey Show Highlights, Kathy reaches out to the Ramsey Network seeking guidance after uncovering her husband's substantial financial deceit. Over the course of their 27-year marriage, Kathy entrusted her husband with their finances, allowing her to focus on managing their household and raising their four children. However, recent revelations have forced her to confront a looming financial catastrophe that has ultimately led her to file for divorce.

Kathy's Financial Predicament

Discovery of Debt

Kathy introduces her predicament at the onset, revealing that her husband has accumulated nearly $1,000,000 in debt without her knowledge. This staggering amount includes various types of liabilities that have emerged over the past few years.

Breakdown of Debts

• Unpaid Income Taxes:
  Kathy discloses that her husband has failed to pay income taxes for three consecutive years, totaling approximately $160,000.

  Kathy (01:10): "He hasn't paid income taxes in three years."

• Credit Card Debt:
  Unbeknownst to Kathy, there is $80,000 in credit card debt from accounts she was unaware existed.

  Kathy (01:14): "There's about $80,000 in credit card debt with cards I didn't know existed."

• Mortgage on Office Building:
  A significant $550,000 mortgage on her husband's office building has further compounded the financial strain. Kathy was a personal guarantor for this loan, a responsibility she barely recalls.

  Kathy (01:18): "There's a $550,000 mortgage on his office building that I'm, I was a personal guarantor on."

• Loans from Her Father:
  In 2019, Kathy's father passed away and left her a considerable inheritance. Trusting her husband, she extended $500,000 to assist with his businesses, with promises of repayment that have yet to materialize.

  Kathy (02:57): "In 2019, my father passed away and left me a significant amount of money... I've totaled all that up, and it's about $500,000."

Potential Liability

Given that the debts are in joint names, Kathy fears she may be held responsible for half of the total debt, amounting to approximately $250,000.

Ken (04:43): "If you're going to have to pay half... you would owe $250,000 if the judge split it down the middle, is that correct?"
Kathy (04:48): "Approximately. I'm anticipating in... my lawyer thinks we'll end up finding more."

Asset Assessment and Financial Outlook

Current Assets

• Primary Residence:
  Kathy and her husband own a house valued at around $2,000,000. The house is fully paid off, having been purchased through the sale of a previous property.

  Kathy (05:25): "I think it's probably worth maybe $2 million."

• Business Holdings:
  Initially, Kathy believed her husband's business holdings were part of their assets. However, she now suspects these have been depleted or mismanaged.

  Kathy (05:33): "Well, it was all of his business holdings, but I think they're all gone from what I can tell."

Income and Employment

After 27 years of managing the household, Kathy recently resumed her career and secured a position as an appellate attorney, anticipating an income of $130,000 this year.

Kathy (06:09): "I just got a job last week."
Ken (06:11): "What are you doing?"
Kathy (06:13): "I'm an attorney."

Strategies to Address and Resolve the Debt

Asset Liquidation and Debt Settlement

Ken and Jade Warshaw provide actionable advice on navigating the financial turmoil:

1. Asset Division:
   Selling the primary residence could yield sufficient funds to cover a significant portion of the debt. Splitting the proceeds equitably between Kathy and her ex-husband is essential.

   Jade Warshaw (05:29): "You're probably gonna sell it and split the profits... and then, yeah, whatever debt you're on the hook for, you'll take that money and pay off that debt."

2. Income Utilization:
   With an annual income of $130,000, Kathy is positioned to manage and repay her share of the debt effectively.

   Ken (06:25): "Kathy, what are you going to make this year?"
   Kathy (06:34): "$130,000."

Legal Considerations

As Kathy has already filed for divorce, the division of assets and liabilities will be overseen by legal professionals. It’s crucial for her to work closely with her attorney to ensure a fair settlement.

Lessons and Future Financial Practices

Rebuilding Trust and Financial Responsibility

Jade highlights the importance of transparency and joint responsibility in managing finances to prevent similar situations in the future. Establishing clear communication and shared oversight over financial matters are pivotal.

Jade Warshaw (07:48): "Everything is 100. Like, we're keeping everything above board. We're talking about it."

Empowerment Through Education

Kathy's journey underscores the necessity of financial literacy and vigilance, especially when entrusting financial responsibilities to a partner. Ensuring that both parties are informed and involved in financial decisions is critical for a healthy relationship.

Notable Quotes

• Kathy on Trusting Her Husband:
  "I'm just, like I said, I feel like an idiot because I've trusted him with the finances." (01:36)

• Ken on Shared Financial Responsibility:
  "Money is just... it is a joint thing... everybody's got to have their brain on and looking at this because really, this is what happens when you don't." (03:44)

• Jade on Moving Forward:
  "You'll probably sell it and split the profits... you'll ride off into the sunset." (05:29)

• Jade on Future Relationships:
  "We're keeping everything above board. We're talking about it." (07:48)

Conclusion

Kathy's story is a poignant reminder of the importance of financial transparency and shared responsibility within a marriage. With the guidance of Ken and Jade from the Ramsey Network, Kathy is now equipped with a roadmap to navigate her financial challenges and rebuild her life. This episode serves as an invaluable resource for listeners facing similar situations, offering both empathy and practical solutions to regain financial stability.

Note: Timestamps correspond to the moment the quotes were made in the transcript.