Good news, though – you can remove your name from the loan and get your name off the title. This can be done by refinancing the car loan and making either one of you the sole owner of the vehicle. Refinancing is the only way to remove a co-borrower from an auto loan.
Can you refinance a car during a divorce?
If both your names are on the original auto loan, you’ll need your ex-spouse’s permission to refinance. Sometimes that occurs through the divorce proceedings and is agreed to as part of the settlement or decreed by the court.
Should I pay off car loan before divorce?
Debt Assignment If a car is security, the spouse who receives the car also receives the car’s loan payments. When you’re worried your spouse will not pay off a debt that could leave you unnecessarily responsible, make sure it is paid off before the divorce is finalized.
How can I get my Ex to pay my car loan?
Take your ex to court. While a judge can’t salvage your now-tainted credit rating or prevent the loan company from demanding payment, the courts can order that your ex reimburse you for any payments you made to keep the car from being repossessed.
Can a judge order an ex to pay a car loan?
While a judge can’t salvage your now-tainted credit rating or prevent the loan company from demanding payment, the courts can order that your ex reimburse you for any payments you made to keep the car from being repossessed.
What happens to your car loan during a divorce?
Divorce involves splitting your marital assets, but it also means dividing your marital debt. When it comes to your car loan and divorce, make sure your property settlement agreement spells out what to do with your loan.
What should I do if my ex can’t refinance my car?
If you prefer that your soon-to-be-ex keep the vehicle but you still want to be sure she pays for it, then you should pay for it. You could make the payments outright, as a monthly property settlement payment that is non-taxable income to her (and not deductible for tax purposes to you) or as alimony (that is taxable to her and deductible to you).
