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What happens if I'm stuck with two car payments after a divorce?
My husband and I had two vehicles during our marriage, and when we separated, we each kept our respective cars. Unfortunately, my name is still on the loans for both of our cars since my husband couldn't qualify for the loan on his own. I'm stuck paying my $500 a month and now his $400, which he says he can't afford to pay now. What are my options?
Sophie Newman · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“It depends on whose name the car title is in. If you own the car legally (or by decree during the divorce), you can surrender the vehicle.
One of you is going to have to pay for the difference between what the car sells for and what you still owe on the loan, but at least your credit won’t be at risk.
If it’s possible for your husband to refinance the car with someone else as a guarantor, that would also be an option. Be aware that if your name is on the loan, you’re always going to be equally responsible for the payments, no matter what was decided in the divorce settlement.
If your ex-husband is able to refinance in his name or if you surrender the car, you will need to adjust your car insurance policy. I know it adds another thing to your plate during a stressful time, but
Jerry
is here to help. Jerry is a free online comparison tool that shops for the best deals and delivers them to your phone in minutes, so you can save time and money, allowing you to focus on how to start your new life.”View full answer
- Gregory R.
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