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  1. #1
    Join Date
    Sep 2015
    Posts
    1

    Default Responsibility for Refinancing a Vehicle After Divorce

    My question involves a marriage in the state of: Illinois
    I was divorced in June 2015. We shared ownership of a vehicle. The vehicle was granted to me, along with 100% of the remaining loan( all payments/insurance maintained and current-). Even though both the car and loan remain in both of our names. Since, my ex has been trying to trade a vehicle for another and said he has been unable to secure a loan, because this loan is outstanding(false because I just bought another new vehicle). He has insisted that I refinance in my name only or surrender this vehicle. I can't refinance because there is too much negative equity
    My questions:
    1. What are my rights in this decision?
    2. Even though I have divorce paper work saying that I am financially 100% responsible, will he be responsible for any balance remaining on this vehicle, once surrendered?
    3. What paperwork should I get from him if I relinquish the vehicle to him?
    4. Once in he has accepted the vehicle into his possession, would he have to insure until he surrenders?

  2. #2
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Responsibility for Refinancing a Vehicle After Divorce

    Quote Quoting moon0969
    View Post
    My question involves a marriage in the state of: Illinois
    I was divorced in June 2015. We shared ownership of a vehicle. The vehicle was granted to me, along with 100% of the remaining loan( all payments/insurance maintained and current-). Even though both the car and loan remain in both of our names. Since, my ex has been trying to trade a vehicle for another and said he has been unable to secure a loan, because this loan is outstanding(false because I just bought another new vehicle). He has insisted that I refinance in my name only or surrender this vehicle. I can't refinance because there is too much negative equity
    My questions:
    1. What are my rights in this decision?
    2. Even though I have divorce paper work saying that I am financially 100% responsible, will he be responsible for any balance remaining on this vehicle, once surrendered?
    3. What paperwork should I get from him if I relinquish the vehicle to him?
    4. Once in he has accepted the vehicle into his possession, would he have to insure until he surrenders?
    He does not have the right to demand you do anything other than make the payments on time and keep the car insured. You should not surrender the vehicle to him...nor allow him to damage your credit by surrendering it to the lender.

  3. #3
    Join Date
    Jul 2006
    Posts
    1,421

    Default Re: Responsibility for Refinancing a Vehicle After Divorce

    Quote Quoting llworking
    View Post
    He does not have the right to demand you do anything other than make the payments on time and keep the car insured. You should not surrender the vehicle to him...nor allow him to damage your credit by surrendering it to the lender.
    Not quite true. She is causing him damage and if there is a hold harmless clause then she needs to refinance. Just because she could get another vehicle doesn't mean he would be able to do so. If you turn the car in, he may be held responsible for the loan company but OP can be held in contempt.

  4. #4
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Responsibility for Refinancing a Vehicle After Divorce

    Either the judgment merely ordered you to take over payments or it ordered you to refinance. If you were ordered to refinance, it doesn't matter that you'll have to chip in some cash in order to complete a refinance -- that's what you were ordered to do. If you were merely ordered to keep up on the payments and have done so, and you remain complaint with the judgment, you don't have to accommodate your ex.

    If you want to work out a new deal with your ex- where he takes the car and becomes responsible for the entire balance of the loan, make sure that you get it in writing. One approach would be to sell him the car, with his paying off the lien as part of his purchase, with his getting title transferred to his name as part of that process. Another might be to allow him to use the car as a trade-in for his new vehicle, with your cooperating in getting the vehicle signed over to the dealer and the lien being paid off as part of that process.

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