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My husband and I are separated. His car loan was under both our names. I assumed all bills - what can i do with this debt?

My husband and I are separated. His car loan was under both our names. I assumed all bills but that one and have paid all consistently (with no more than 1-2 week late once in a while). He did not pay car loan and car was repossessed. Approx. $3000 is unpaid. Am I held responsible for that?

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Bill's Answer
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This is a very good question... and a very complicated situation. The short answer is that you will likely have to seek legal counsel from an attorney in your area regarding loans and divorce. It is highly likely that you will have to pursue this account through a legal process, to force your husband to pay the debt. If you were a joint-borrower on the original account, the creditor will most likely pursue you and your husband to collect on the debt.

Most creditors will not accept a divorce settlement as legally binding, and they will still pursue the account (and you).

I hope the information helped you Find. Learn. Save.

Best,

Bill

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16 Comments

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  • BA
    Mar, 2010
    Bill
    State law determines how assets are distributed upon divorce. Each state's laws are unique in this area, and questions such as yours are also very fact-dependent. I do not know your state of residence. I only know what you have written about your situation. It would be foolish for me to offer an observation about how to handle the balance of the credit card in question. Consult with an attorney in your state with experience in family law. He or she will be able to review your entire situation and offer a precise opinion.
    0 Votes

  • MA
    Mar, 2010
    Mike
    My wife and I are getting a divorce. Knowone has been served with papers yet. We sold our house. She asked the lawyer to put the proceeds of the house in his escrow account. She gave the lawyer a list of marital debt to be paid of with the proceeds. She did not include a Buisness credit card that was under my name. The credit card was used for the buisness which I owned, and for personal things for the family. My wife was responsible for paying the bills on this card and did so with intermingled funds from our buisness account and our joint checking account.I would like to know if she is responsible for half of the debt on this card due to the fact that she has been paying it with marital monies and that we used the card for familie porposes as well as keeping our buisness afloat.
    0 Votes

  • BA
    Mar, 2010
    Bill
    Your options are few. You do not mention who was given possession of the vehicle. If your ex-spouse has possession, contact her immediately and explain your situation and that you are about to violate your divorce agreement. She may wish to start making the payments, which you will be obligated to repay her when your financial situation improves. If your ex-spouse is not in possession of the vehicle, you should still contact her to alert her to the fact that she is about to be inundated with collection calls. See the Bills.com resource Voluntary repossession to learn more about your only viable option. Because your ex-spouse is the debtor, she will be obligated to pay the deficiency balance. She, in turn, has a cause of action against you to repay her the deficiency balance.
    0 Votes

  • 35x35
    Mar, 2010
    Ryan
    I have been divorced from my ex for a year now. In the decree, i was to take responsibility for the payments of the car, however, the loan is solely in her name. I'm not in a situation where i can't afford the car and the bank is threatening to reposes the vehicle. What can i do to get rid of this car? the loan is so upside down that the value of the car only comes within $10k of the loan. Thanks
    2 Votes

  • BA
    Jan, 2010
    Bill
    If I understand your somewhat cryptic question correctly, your father is a signatory on your spouse's student loan. You want to know your liability for your spouse's student loans. If you plan to continue to be married to your spouse, the answer depends on your state of residence. If you reside in a community property state, you are jointly liable for the debt. If not, it is his separate liability. However, if you are planning a divorce and live in a community property state, the student loan debt is his alone. The fact that your father is a signatory is irrelevant to any liability you may or may not have.
    0 Votes

    • JY
      Aug, 2011
      Jason
      Ontario, CA
      My wife has got our divorce finalized. She is now driving the car which owns loan solely under my name. Our divorce was simple. We don't have any joined asset. Can I still get my car back?
      0 Votes

    • BA
      Aug, 2011
      Bill
      What did the divorce decree say about the division of property?
      0 Votes

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