cars and divorce- loan

[sad1]

What is the name of your state (only U.S. law)? pa

In a divorce, we are on both the loans and titles for both of our cars. if a car is traded in for a new loan and car- does it still need refinanced to get the other person off the loan? or then does just the title need signed over to the dealership with the other person's name as well.

wondering if trading in the car would be a better option at this point than refinancing, but not sure if that would solve the joint loan issue as well.

 

[Ohiogal]

What is the name of your state (only U.S. law)? pa

In a divorce, we are on both the loans and titles for both of our cars. if a car is traded in for a new loan and car- does it still need refinanced to get the other person off the loan? or then does just the title need signed over to the dealership with the other person's name as well.

wondering if trading in the car would be a better option at this point than refinancing, but not sure if that would solve the joint loan issue as well.

If the other spouse cosigns then after divorce it would need refinanced. If you are already divorced and the ex is willing to sign off on you trading the car in and you get the loan strictly in your name then it would not need refinanced by you if you are awarded the vehicle that was traded in/this vehicle.

If the divorce is ongoing you better have your ex's permission and realize that the car is still considered marital property regardless of WHOSE name is on it.

 

[mistoffolees]

If the other spouse cosigns then after divorce it would need refinanced. If you are already divorced and the ex is willing to sign off on you trading the car in and you get the loan strictly in your name then it would not need refinanced by you if you are awarded the vehicle that was traded in/this vehicle.

If the divorce is ongoing you better have your ex's permission and realize that the car is still considered marital property regardless of WHOSE name is on it.

I would not even consider trading it while the divorce is pending without passing it by the attorney. Basically, the car with both names on it (and which is clearly marital property) is traded on a car which is solely in her name (and since it was purchased after divorce filing, it is her sole property). I don't know if it falls under dissipation of assets, but I suppose it could.

Talk with the attorney. It is most likely that if you can get the stbx to agree that you'll give him/her their half of the equity that it won't be an issue, but if you do it without some kind of understanding, it could be.

 

[LdiJ]

I would not even consider trading it while the divorce is pending without passing it by the attorney. Basically, the car with both names on it (and which is clearly marital property) is traded on a car which is solely in her name (and since it was purchased after divorce filing, it is her sole property). I don't know if it falls under dissipation of assets, but I suppose it could.

Talk with the attorney. It is most likely that if you can get the stbx to agree that you'll give him/her their half of the equity that it won't be an issue, but if you do it without some kind of understanding, it could be.

It could, but most people with a car loan don't have much, if any, actual equity in the car. Generally a car is upside down until the loan is at least half way paid off, or even longer, depending on the length of the loan.

 

[mistoffolees]

It could, but most people with a car loan don't have much, if any, actual equity in the car. Generally a car is upside down until the loan is at least half way paid off, or even longer, depending on the length of the loan.

That might be true (although if they're getting ready to trade, it may be old enough to have equity, anyway), but I would never advocate disposing of a marital asset without having an agreement in place with the other party.