New car

[Kathy 1948]

My husband and I are separated and I have filed for divorce. We live in California. We were married for 32.9 years. Our property settlement is not agreed to yet. While we have been separated I traded in my car (registered to me) on a new car because my other one had major work to be done on it. I got $7,000.00 for a down payment on the new car. Do I have to disclose this on the property settlement? Do I owe him half of this down payment? HELP.....Thanks

 

[I AM ALWAYS LIABLE]

My response:

Yes, unless your trade-in car was more than 32.9 years old.

IAAL

 

[Kathy 1948]

Reply to IAAL

Does this mean that he will pay half of the new car payments, too????

 

[I AM ALWAYS LIABLE]

My response:

Well, that's one scenario. The other can be that the car is ordered to be sold, and the proceeds divided - - if there's anything to "divide"; i.e., if the leinholder has been paid in full. If it is sold, and there remains a deficit owed to the leinholder, each of you will be ordered to incur half of that deficit.

You see, herein lies the problem for you : Since, as you know, California is a Community Property State, and since your "trade-in" car was obviously purchased during the marriage, all assets of the marriage are to be divided equally. So, it makes no difference who "earned" the money for, or how the "trade-in" car was registered, when it was first purchased. The fact remains that it was still an asset of the marriage (in California), and everything shall either be divided or sold.

If, in your Marital Settlement Agreement, he takes on any of the Marital Debts, MAKE ABSOLUTELY SURE that you place a clause in the agreement that neither one of you shall make any such debts included in any Bankruptcy proceeding. Because, if you don't, and if he files for BK, all of the joint or shared debts will become 100% yours.

IAAL

 

[Kathy 1948]

IAAL - Thanks for the info. I don't think this car purchase will be a big problem as we have other items that he is keeping that will offset it. At least I hope so. Anyway, I just wanted to make this clear to myself. Thanks again.