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being sued for payments made on shared boat loan

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Littlehelppleas

Junior Member
What is the name of your state (only U.S. law)? ca

was just informed that my exwife is suing me for payments she made on our boat prior to it being repossessed.

the story... we bought a boat together 5 years ago, divorced and the boat loan remained in both of our names while we tried to sell it. we were upside down quite a bit on it so it was a difficult sale. after about a year of us sharing payments and possession neither of us were able to re-finance the balance and relieve the other party of the boat loan. i spoke with the bank on numerous occasions and eventually voluntarily gave the boat back about 3 months ago. she was well aware of what was happening but now has sued me for payments she made while we still owned it. claiming she brought the loan out of default and i took possession of the boat and the repossession happened because i didnt make payments. i the tune of $2600.00.

not sure if it is relevant but i did get the boat off a consignment lot that she had it on for sale because i had an interested buyer and we would have been less out of pocket if we avoided paying the commission for the salesman. it was shortly after that the boat was taken by the bank.

does she have a case? was blindsided by this but none the less the divorce drama continues i guess. thanks for any advice.
 


Littlehelppleas

Junior Member
was agreed that it would remain in both names until one of us could re finance the balance or sell it. didnt expect it carry on for this long. i made payments for a while then she took it to attempt to trade it in on a car. was unable to make the trade work at the dealership so she kept possession as we both tried to sell it. the payments she made while she had it are what she is suing me for. from nov-april.
 

Littlehelppleas

Junior Member
can i counter for the payments i made after the divorce and before it was repossessed? which greatly out weighs her few months of payments..
 

Antigone*

Senior Member
was agreed that it would remain in both names until one of us could re finance the balance or sell it. didnt expect it carry on for this long. i made payments for a while then she took it to attempt to trade it in on a car. was unable to make the trade work at the dealership so she kept possession as we both tried to sell it. the payments she made while she had it are what she is suing me for. from nov-april.
You can't stop her from suing you, but I don't see her getting a positive resolution. This boat belonged to both of you, you both lost. Make sure you take your evidence of payments and whatever other paperwork you have with you to court.

Your defense is that this liability belonged to the both of you, both of you made payments, and eventually both of you lost the asset to the bank.
 

latigo

Senior Member
can i counter for the payments i made after the divorce and before it was repossessed? which greatly out weighs her few months of payments..

It would be more helpful to be more specific by describing how the divorce decree treated the ownership of the boat and the existing loan.

However, if the result of the decree is that you remained co-owners and co-obligors on the loan, then each would be entitled to contribution from the other for one half of any amounts paid against the loan. That is, subsequent to the date of the decree.

In other words, if, she paid $2,600 towards the balance of the loan (post divorce), you would be obligated to reimburse her in the amount of $1,300.

By the same token she would be obligated to reimburse you for one half of any amounts that you paid post divorce.

So, if you paid less than she did, you would be entitled to an offset against her court claim to the extent of one half of your payments.

If you paid more than $2,600, you should counterclaim for the amount that one half of your payments exceed $1,300.

Who had possession of the boat and how it was eventually disposed of is not significant.
________________________

Hopefully you are now aware that a boat is a moving hole in the water in which you pour money.

And that the happiest people in the world are those that just bought a boat and those that just sold one.
 

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