“Separating loans and finances with an ex can be a sticky situation. Thankfully, it sounds like you two are working well together, which will make things a lot easier.
The fact that you have made all of your past payments will be incredibly helpful! However, removing yourself from the loan will depend on the rules built into your finance contract and how good you and your ex’s credit currently is.
The simplest way to get out of it is to pay the loan off in full. Understandably, this isn’t something you can do right now, but it would be worth it to ask your ex if it is something he can do.
If either of you can make the payment, you can simply sign the title over to him once the car is paid, and you are all set.
If paying the loan off in full isn’t an option, then he should try refinancing the loan in his name. If he has good credit, he can visit the bank or loan office and refinance under just his name. This is the only way to get your name off of an existing loan.
The world has changed a lot in the past year and not everyone has the same financial situation that they once did. If neither of you can refinance the loan, get another co-signer, pay off the loan, or borrow money to pay off the loan, it is a genuine possibility that you will not be able to remove your name from the loan.
That may sound scary, but it doesn’t have to be. If your ex makes the payments on time, it will improve your credit score. If he doesn’t, then it will hurt both of your credit scores.
Whoever’s name is on the title will need to list the car on their car insurance
policy. Once you figure out the loan, you can retitle the car in just his name, and then he will be responsible for paying for car insurance on the vehicle.
Once you confirm that the vehicle is listed on his insurance policy, you can cancel your policy.
In the future, when you are ready to start a new insurance policy, keep Jerry
in mind. Jerry is a free
insurance comparison app that shops the lowest prices from over 50 different insurance companies.
Good luck with everything!”