I have a legal question dealing with car titles and divorce...?

Question

Here is the situation. Let's say Mark and Sue were married, but they just wern't in love so they got a divorce. Each person got to keep their respective car in the divorce settlement. Sue's car has Mark as the primary owner, and she is ordered to have his name taken off of the title "within a reasonable amount of time." The car is worth about $7000 and has about $7000 left to pay off. If re-financing is not an option, how would Sue get Mark's name off of the car? The dealership says they can't do anything without re-financing.

I was informed that to posess the title you had to outwright own the car...is this wrong?

Answer 1

Generally, the finance company holds on to the title until the car is paid off. That is the best way to prevent fraud. The state, generally won't re-title a car if a lein is recorded on the title without the finance company's okay. The finance company probably won't just okay a title transfer, or re-titled in her name only, because that would technically relieve Mark from his obligation to pay for the car. The finance company would relieve him of that obligation after they make sure Sue is capable to pay on her own. If her credit is bad, or she can't afford to pay for the car herself, they he is stuck with his name on the title.

The good news for Sue is that the "within a reasonable amount of time" part of the order will usually, but not always, include the amount of time that it takes for Sue to pay off the car or qualify to re-finance it on her own. As for Mark, why would he care if his name is on the title? His concern should be about the loan on the car. It could be a pain in the a** is she decides to quit making payments on the loan.

BTW, the court cannot order the finance company to relieve Mark of the debt because the contract is between Mark and the finance company and the finance company is not part of the proceeding. At least in the US, we, including the finance company, are still afforded due process before we are relieved of our rights, even under a contract.

Answer 2

You take your divorce papers to your loan officer and tell them you want to be removed from the loan - - Sue will remain on the loan and will be respnsible for all payments. Then take the divorce papers and the new information from the loan officer and take it to the Dept of License and Registration - have them change the title so Mark's name is no longer on there. If the financing is through the dealership - they will have to work with mark & sue - - and yes they can do things without refinancing - their just trying to squeez more money out of them in fees.

Answer 3

Call your Local DMV office and ask them what you can do or I would go down there and talk to them and bring the divorce decree. I had a investigator help me with the same situation and the title was transferred to my name and all that good stuff. It took about a total of 5 mo from start to finish. I know the Department Of Motor Vehicles knows the laws on all this stuff. Hope this was of some help.

Answer 4

One would have to refinance to get mark's name off the car, and mark would also have to sign over his interests in the car to Sue. Other than refinancing, Sue would have to pay it off, but she would still have to have Mark release his interests to have a clear title..

Answer 5

Change the title thru the BMV. And take names off loan thru the loan company. You have the Order.

Answer 6

Been ther, done that. My car was in my ex hubby name , but i wanted to keep the car, so If communicating is there, let her make monthly payment to you or direct to loan office. Other option is to keep the car in your name and drive it. Co-signer is always option too

Answer 7

talk to your lawyer that's part of what you paid him for and should be in the divorce decree