Divorce Process Question
May 6, 2015 6:22 AM Subscribe
Hopefully a quickie: Divorcing, and my car loan is in wife's name (as is registration), and her car loan and registration is in my name. Need your help/advice
Hopefully a quickie: Divorcing, and my car loan is in wife's name (as is registration), and her car loan and registration is in my name. Both of our loan companies have given us the runaround on how to fix this. We tried to transfer the loan to each other, but both loan company insists that they don't offer that.
Do we:
This is the last point that is preventing an amicable split so your help is appreciated!
Hopefully a quickie: Divorcing, and my car loan is in wife's name (as is registration), and her car loan and registration is in my name. Both of our loan companies have given us the runaround on how to fix this. We tried to transfer the loan to each other, but both loan company insists that they don't offer that.
Do we:
- Refinance the vehicles, but using the correct person?
- Keep pushing the insurance company?
This is the last point that is preventing an amicable split so your help is appreciated!
It isn't a refinance if you change borrowers. But it's easy enough to sell the vehicles to each other, assuming you can both get a loan. You pay off your existing loan on car A with the financing you get on your new loan for car B, and your spouse does the opposite. I work at a credit union (but in marketing - IANYBanker) and this is not unheard of.
posted by headnsouth at 6:31 AM on May 6, 2015 [4 favorites]
posted by headnsouth at 6:31 AM on May 6, 2015 [4 favorites]
Response by poster: @arnicae We can't swap cars, unfortunately. Hers is brand new and she won't part with it.
@headnsouth For this process, do I initiate getting a loan for her vehicle even though it's already in her name? And does she do the same for mine? I appreciate your advice!
posted by Draccy at 6:40 AM on May 6, 2015
@headnsouth For this process, do I initiate getting a loan for her vehicle even though it's already in her name? And does she do the same for mine? I appreciate your advice!
posted by Draccy at 6:40 AM on May 6, 2015
Yes, you go into your bank or credit union or loan shark and say "I'd like a loan to buy a 2012 Tomota Grackle (or whatever "your" car is) in a private sale." They don't have to know that you are already driving it. Similarly, she goes to her money provider and asks for a loan to buy a 2015 Fnord Illumina in a private sale, even though that is the car she is in possession of.
posted by Rock Steady at 6:50 AM on May 6, 2015 [7 favorites]
posted by Rock Steady at 6:50 AM on May 6, 2015 [7 favorites]
When you drive the car, the owner(person on the title) has some liability. The person who is on the loan has liability for the loan, and it affects their credit rating. So, yes, I would recommend getting new loans, and new titles.
posted by theora55 at 10:17 AM on May 6, 2015
posted by theora55 at 10:17 AM on May 6, 2015
Things like this can get weird in a community property state, so if that applies to you, I'd run this by your lawyer first.
posted by desjardins at 10:50 AM on May 6, 2015
posted by desjardins at 10:50 AM on May 6, 2015
Sell the cars to each other for the value of the other car?
posted by Justinian at 1:56 PM on May 6, 2015
posted by Justinian at 1:56 PM on May 6, 2015
Ohh, the cars are not paid off. This could be a sticky wicket.
posted by Justinian at 1:56 PM on May 6, 2015
posted by Justinian at 1:56 PM on May 6, 2015
This thread is closed to new comments.
posted by arnicae at 6:28 AM on May 6, 2015 [3 favorites]