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  1. #1
    Join Date
    Jul 2018
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    2

    Question Disagreement Over Interpretation of a Marital Settlement Agreement

    My question involves a marriage in the state of: Maryland.

    Ex husband and I have a marital settlement agreement in our divorce. There is a section pertaining to automobiles. Ex husband purchased a car in his own name, titled to only himself with a loan in his name only. When he bought the car he declined the gap insurance coverage. In the divorce I was awarded sole use and possession of the car provided I made all payments (see portion of agreement below).
    "Husband owns a 2015 Volkswagen Beetle ("the Beetle") in his sole name; which Beetle is driven by Wife. The Beetle is subject to the lien of a loan to BBT in Husband 's sole name. From the date of this Agreement, Wife shall have sole use and possession of the Beetle, provided that Wife timely pays all costs, expenses and liabilities associated with the Beetle, including but not limited to the loan (which shall be paid by auto-pay from Wife's account), insurance, all toll charges and/or photo tickets past, present or in the future, and Wife shall indemnify and hold Husband harmless therefore. .... If Husband makes any payment relating to the Beetle to protect his credit rating or otherwise, or if Wife lets the insurance on the Beetle lapse, then, upon thirty (30) days' notice to Wife, Husband shall have the right to take possession of the Beetle and sell the Beetle to pay off the outstanding loan obligation. Wife shall indemnity and hold Husband harmless for any of the payment relating to the Beetle that she herein agrees to pay."
    Nothing in the agreement covered accidents or damage to the car. A couple weeks ago I had an accident and the car is totaled. I was not issued citations and received no tickets. I made the payments up until the time I no longer had the car (July 13, 2018). The insurance paid him for the car leaving a balance a little over $1,000 due on the loan. He is insisting it is my responsibility to pay it and threatening to sue me if I don't. Does the "indemnify and hold harmless" language in the agreement make me responsible for the balance on the car if I no longer have use and possession? Will I be required to reimburse him for any payments he makes?

    Thank you.

  2. #2
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Language Unclear in Marital Settlement Agreement

    Actually the agreeement did cover accidents although not in those terms.

    It it says you shall pay all liabilities associated with the car. The loan is a liability associated with the car.

    Thats is why you shouldn’t have taken a car that was upside down or fail to obtain additional insurance on the vehicle that would protect your liabilities.

  3. #3
    Join Date
    Jul 2018
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    2

    Default Re: Language Unclear in Marital Settlement Agreement

    The agreement does not say that I agree to pay all liabilities associated with the car no matter what though. It says Wife shall have sole use and possession of the Beetle, provided
    that Wife timely pays all costs, expenses and liabilities...

  4. #4
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    Jan 2006
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    Default Re: Language Unclear in Marital Settlement Agreement

    Quote Quoting mlnemphos
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    The agreement does not say that I agree to pay all liabilities associated with the car no matter what though. It says Wife shall have sole use and possession of the Beetle, provided
    that Wife timely pays all costs, expenses and liabilities...
    It does specify you are liable for the loan specifically though so that means you pay the loan. It doesn’t say you pay the loan except under these circumstances or not under some circumstances. It says you are liable for the loan so pay what the order says you must pay.

  5. #5
    Join Date
    Mar 2013
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    18,340

    Default Re: Language Unclear in Marital Settlement Agreement

    Quote Quoting mlnemphos
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    The agreement does not say that I agree to pay all liabilities associated with the car no matter what though. It says Wife shall have sole use and possession of the Beetle, provided
    that Wife timely pays all costs, expenses and liabilities...
    I agree with JK.

    The language clearly makes you responsible for that $1000 or so shortfall.

    You just don't want to accept that fact.

  6. #6
    Join Date
    Oct 2006
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    16,474

    Default Re: Language Unclear in Marital Settlement Agreement

    Quote Quoting adjusterjack
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    I agree with JK.

    The language clearly makes you responsible for that $1000 or so shortfall.

    You just don't want to accept that fact.
    I agree with JK and Jack. You owe that 1000.00.

  7. #7
    Join Date
    Dec 2016
    Posts
    172

    Default Re: Language Unclear in Marital Settlement Agreement

    Quote Quoting mlnemphos
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    The agreement does not say that I agree to pay all liabilities associated with the car no matter what though. It says Wife shall have sole use and possession of the Beetle, provided
    that Wife timely pays all costs, expenses and liabilities...
    Not only do I agree with everyone else, but the wording is clear enough that if you let him take you to court, I suspect you could also end up having to pay his attorney fees.

  8. #8
    Join Date
    May 2014
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    211

    Default Re: Language Unclear in Marital Settlement Agreement

    I disagree with everyone else. I think the contract gives a release - although probably not intended to do that.

    "If Husband makes any payment relating to the Beetle to protect his credit rating or otherwise, or if Wife lets the insurance on the Beetle lapse, then, upon thirty (30) days' notice to Wife, Husband shall have the right to take possession of the Beetle and sell the Beetle to pay off the outstanding loan obligation. Wife shall indemnity and hold Husband harmless for any of the payment relating to the Beetle that she herein agrees to pay."

    By not making a payment, or letting the insurance lapse, the husband's right is to take possession of the car. So, let him take possession - that's what the contract states.

  9. #9
    Join Date
    Oct 2006
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    16,474

    Default Re: Language Unclear in Marital Settlement Agreement

    Quote Quoting Guybrush
    View Post
    I disagree with everyone else. I think the contract gives a release - although probably not intended to do that.

    "If Husband makes any payment relating to the Beetle to protect his credit rating or otherwise, or if Wife lets the insurance on the Beetle lapse, then, upon thirty (30) days' notice to Wife, Husband shall have the right to take possession of the Beetle and sell the Beetle to pay off the outstanding loan obligation. Wife shall indemnity and hold Husband harmless for any of the payment relating to the Beetle that she herein agrees to pay."

    By not making a payment, or letting the insurance lapse, the husband's right is to take possession of the car. So, let him take possession - that's what the contract states.
    I am starting to waffle from my previous opinion. What you have quoted is part of that, but also the language that states:

    The agreement does not say that I agree to pay all liabilities associated with the car no matter what though. It says Wife shall have sole use and possession of the Beetle, provided
    that Wife timely pays all costs, expenses and liabilities...
    Both of those things seem to indicate that her use of the vehicle is conditional. Since she was apparently not responsible for the accident (although I am not sure that is fully established in this thread yet) and only had conditional use of the vehicle, I am not sure that it's correct that she owes the $1000.00. I still lean that way, but I am not sure it's correct.

  10. #10
    Join Date
    Sep 2005
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    98,846

    Default Re: Language Unclear in Marital Settlement Agreement

    The agreement is sufficiently clear that it shouldn't be confusing laypersons, although it nonetheless appears to be confusing some of you. The wife committed to this: "Wife shall have sole use and possession of the Beetle, provided that Wife timely pays all costs, expenses and liabilities associated with the Beetle, including but not limited to the loan (which shall be paid by auto-pay from Wife's account), insurance, all toll charges and/or photo tickets past, present or in the future, and Wife shall indemnify and hold Husband harmless therefore." The husband is seeking indemnification for a cost associated with the wife's use of the vehicle. If she prefers to repair it and return it to him, she can see if the court will go for that as an alternative, but this isn't a childish game where she can say "It's totaled and worthless so I don't want it any more, and that means I get out of my duty to indemnify."

    There would be no need for indemnification language if the husband's sole remedy was to take the car back.

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