Soon to be ex bought a car recently.

[captain149]

What is the name of your state (only U.S. law)? KS. Looks like we are heading towards divorce. Mother in law recently put a down payment of 20K on a new car for my wife. My wife has the car in her name and still owes another 30K. Her mother gives her the monthly payment. Her mom is trying to help her rebuild her credit. My question is, when we divorce will I have any kind of liability for paying for this car? I did not go with her to pick it up or sign any kind of paperwork. Would the judge say that I owe for half of the car? Community prop state. Thanks for any help.

 

[LdiJ]

What is the name of your state (only U.S. law)? KS. Looks like we are heading towards divorce. Mother in law recently put a down payment of 20K on a new car for my wife. My wife has the car in her name and still owes another 30K. Her mother gives her the monthly payment. Her mom is trying to help her rebuild her credit. My question is, when we divorce will I have any kind of liability for paying for this car? I did not go with her to pick it up or sign any kind of paperwork. Would the judge say that I owe for half of the car? Community prop state. Thanks for any help.

No, you will have no liability for the car. Whoever keeps the vehicle is responsible for the car loan. You also have no marital equity in the car, because the down payment and the monthly payments are gifts to her, from her mother, and gifts are separate property.

 

[Ohiogal]

No, you will have no liability for the car. Whoever keeps the vehicle is responsible for the car loan. You also have no marital equity in the car, because the down payment and the monthly payments are gifts to her, from her mother, and gifts are separate property.

Actually you don't know that.

 

[captain149]

Soon to be ex bought a car recently

My lawyer is filing this morning for divorce. He is telling me that basically I am liable for the 1/2 of the 28K still owed on the car but I also have 1/2 of the value of the car. Of course drive a new car off the lot and it depreciates instantly. So he is thinking $50K car now valued at about 40K = 20K of equity in her car and owe 15K for my half of the loan so it will be either a wash or she would owe me maybe 5K for the car. Opinions?

 

[Ohiogal]

My lawyer is filing this morning for divorce. He is telling me that basically I am liable for the 1/2 of the 28K still owed on the car but I also have 1/2 of the value of the car. Of course drive a new car off the lot and it depreciates instantly. So he is thinking $50K car now valued at about 40K = 20K of equity in her car and owe 15K for my half of the loan so it will be either a wash or she would owe me maybe 5K for the car. Opinions?

If she keeps the car she is responsible for the debt associated. You will not get anything. However it would property in her column.

 

[mistoffolees]

If she keeps the car she is responsible for the debt associated. You will not get anything. However it would property in her column.

But what about the $20 K the MIL gave as a downpayment. That's presumably a gift and separate property, so stbx was using separate property to make the downpayment. Given the initial depreciation, the total equity is probably less than that today.

Does that change things as far as property in her column? Wouldn't the car equity be separate and therefore not appearing in her column?

 

[LdiJ]

Actually you don't know that.

Don't know what?

He stated that the car was purchased in her name only, using a gift from her mother as the down payment, and that her mother was giving her the money to make the payments. Therefore what don't I know?

 

[captain149]

Her mother gives her around 40K a year in money. She did not sign a gift letter on this. She has already given her 24K of money this year. Not sure if that makes a difference. Gives her 3K every month.

 

[Ohiogal]

Her mother gives her around 40K a year in money. She did not sign a gift letter on this. She has already given her 24K of money this year. Not sure if that makes a difference. Gives her 3K every month.

And is any of that money used to pay marital bills? Put into joint accounts?

 

[captain149]

Yes every month her mother would deposit 3K in her account then wife would write me a check for $3000 and I would deposit it in my checking account and then transfer money to either our joint account, which was only used by her and to our savings account. I paid all the bills online. She refused to participate and hates paying bills, she was always late when she was single. Not a big deal since she would just ask her mother for more money if she bounced a check or had late bills.