How is car debt split in divorce in Connecticut?
I'm getting a divorce soon and my future ex and I still have a loan on one of the cars that we shared. How will this be parcelled during the divorce?
“Connecticut is an equal distribution state, which means generally that your property, including debt, is split more or less equally during divorce.
Dealing with debt during divorce can be tricky. If you both co-signed the loan, then you are both equally responsible for payments, regardless of who benefitted (though in this case it sounds like you both did).
Unless you come to some alternative legal agreement, you can expect to share the debt with your future ex after the divorce. If you can come to some kind of agreement (or even pay off the loan) before the divorce is finalized, it will be much easier to split this asset.
If you or your spouse has the means to pay off the loan, be careful of prepayment penalties. Some lenders will charge fees for paying off a loan early. Depending on your financial situation and how much less stress is worth, it might be worth paying off your loan regardless of the fees.
While it adds another thing to do during your divorce, it’s a good idea to review your car insurance policy. Divorce and paying off a loan are both good reasons to evaluate your policy and ensure you’re getting the best rates.
If this feels stressful to you, don’t worry; we’re here to help. The free Jerry app compares rates from the top 50 companies and delivers the best deals to your phone in minutes. We’ll also transfer your personal information to your new provider and cancel your old policy for you.”
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Let Jerry’s experts help you find savings on your car insurance!
No long forms or spam · Get quotes from 40+ carriers
Read advice from car experts at Jerry
Browse by topics
What others are asking
Can child support cover a car for a teen in Texas?
I'm the custodial parent and receive child support from my ex. Can I use the money to help buy my teen a car? He will also be contributing some money of his own.
Aug 09, 2021
Should I refinance before or after a divorce?
My spouse and I are separated but not officially divorced. I want to refinance so I can get just my name on the mortgage payments (he's agreed to let me keep the house). When should I file for refinancing?
Aug 09, 2021
Should I pay off a car loan before a divorce?
Both my future ex and I are on a car loan that is approximately $10,000 right now. Should I try to pay it off before we get divorced? What are the pros and cons of paying it off now or after the divorce is finalized?
Aug 09, 2021