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Loan Responsibility After Divorce

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  • 08-05-2014, 02:49 PM
    MaxKorban
    Loan Responsibility After Divorce
    My question involves an auto loan or repossession in the State of: Iowa

    Hi. I'm 35 and live in Des Moines, Iowa. I just joined up here. I've been looking for a place to get some suggestions and advice from divorced dads who've been through this already. Here in particular, I have a legal question about financial responsibility.

    I have a 2005 Nissan Altima. The car has been long paid off. During our marriage, my ex took out a personal loan using the car as collateral to 'pay off bills', though she never showed me proof that's what it was used for. In the divorce, I took this car while she took hers. We each were to take the car loans associated with each one. However, I'm begining to wonder if I really have to pay this loan at all.

    Per the decree, I am "awared the 2005 Nissan Altima free and clear from any claims by 'ex'. Parties agree to immediately complete all necessary documentation to transfer the Altima to 'me' upon filing of this Decree or within a reasonable time thereafter, transferring all rights, responsibilities and equity in said vehicle to 'me'. Each Party shall be solely responsible for an encumbrance on the vehicle which they will have upon entry of this Decree and shall ensure said encumbrance on their awarded vehicle is only in their name."

    Technically, there is no 'encumbrance' or car loan on the vehicle. However, there is a personal loan using the car as collateral. I am paying that personal loan. But I don't think it's mine to pay. I think this is a personal loan that my ex filed, and it's her financial responsibility. I've been awarded the car, but I'm not responsible for the loan. This personal loan was never specifically addressed in the decree.

    In the section under Personal and Marital Debt... "Each party shall be responsible for any and all credit cards in his/her own name and any other loans or debts in his/her own name and shall hold the other party harmless thereon."

    Am I missing anything here? Am I actually responsible for this loan? What do you think?

    Thank you in advance for your advice on this. :)


    Cheers,
    Max
  • 08-05-2014, 02:52 PM
    Disagreeable
    Re: Loan Responsibility After Divorce
    As you noted, you each agreed to take on the loan associated with the vehicle. Why is there suddenly a clarity issue?
  • 08-05-2014, 02:57 PM
    Mr. Knowitall
    Re: Loan Responsibility After Divorce
    Quote:

    Quoting MaxKorban
    View Post
    Hi. I'm 35 and live in Des Moines, Iowa. I just joined up here. I've been looking for a place to get some suggestions and advice from divorced dads who've been through this already.

    There are forums that provide support for people going through divorce. This one, though, is a legal forum -- focused on answering legal questions, not on providing social or emotional support.
    Quote:

    Quoting MaxKorban
    Technically, there is no 'encumbrance' or car loan on the vehicle. However, there is a personal loan using the car as collateral.

    Why do you believe that the claim against your car isn't an encumbrance -- a claim held against the vehicle by another party?
    Quote:

    Quoting MaxKorban
    I am paying that personal loan. But I don't think it's mine to pay.

    Either you are on the loan as a borrower or you are not. If you are, then the lender will expect you to pay no matter what your divorce judgment says. If you are not, and you default, you can anticipate that your ex- will take you to court to enforce the judgment. You can also expect that the lender will pursue its collateral -- i.e., repossess. So what's the upside for you?
  • 08-05-2014, 03:13 PM
    MaxKorban
    Re: Loan Responsibility After Divorce
    I wasn't seeking emotional or social support, I was seeking an answer to a legal question, which you gave. Thank you.
  • 08-05-2014, 03:27 PM
    Mr. Knowitall
    Re: Loan Responsibility After Divorce
    Quote:

    Quoting MaxKorban
    View Post
    I wasn't seeking emotional or social support, I was seeking an answer to a legal question, which you gave. Thank you.

    We get a lot of people here who expect the former, get the latter, and then get angry; I thus though it important to clarify.
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