We live in Texas and we have two cars. One is in my name and one is in her name. However, I co-signed on her car loan. If we get divorced can a judge remove me from that debt and is it likely that he will do so? If the judge won't remove me from the debt can I refuse to pay and let the finance company take back her car or would the judge require me to pay for it? If you can point to a section of Texas family law online that defines this situation I would like to see it.
Thank you in advance.
2006-10-31 00:35:43 · 17 answers · asked by blue_prince_of_dallas 2 in Family & Relationships ➔ Marriage & Divorce
I cannot point to a specific law-but I will tell you this--your contract for being a co signer has nothing to do with a judge--it is between you guys and the finance company--judge cannot and will not touch that. You are stuck my friend.
2006-10-31 00:37:57 · answer #1 · answered by blonde_bitch_norris 3 · 0⤊ 0⤋
You co-signing the loan can not be 'undone' by the divorce. Yes the judge can give her the car and you would still be 'on the loan'. However, you stated that 'if you refuse to pay' and that indicates that she is not paying the note and you are. This states that she may not have the financial resources to pay for the car and this could be a mediation point before you go to court and she can either 1)sell the car and split the proceeds or loss or 2)she can refinance the car on her own. This is something your lawyer and her lawyer can work out. Just tell your attorney that you want this particular situation resolved, that is, removing your name from the car loan.
If you are not paying the car loan and she ends up with the car and the current loan is still enforce, then you will be liable for the note on the car ONLY if she doesn't pay the note. However, if she defaults on the note, you do have some legal right to 'repossess' the car and pick up the payments. Don't let it get to far behind and the finance company will probably work with you to retain ownership should she default.
The finance company is under no obligation to remove your name (or her name) from the loan even if you divorce. A marriage is a contract between two people to share cost and expense. A loan with a co-signer is a contract between two people (regardless of relationship) and a 3rd party financial company. The relationship between the two people is of no consequence to the responsiblity assumed by those two people and the finance company.
Good luck and I hope this helps.
2006-10-31 00:46:36 · answer #2 · answered by wrkey 5 · 1⤊ 0⤋
Yes, you are in the contract till it is satisfied.
Now what you need to do is to get her to trade it in on anything , then you do not co sign with her.
Even if you say you wont pay . And you don't it still in your name , so your credit will have a repo on it.
Its not the end of the world there is about 30 different finance company's that will buy you . You'll just pay a higher rate about 19 to 22.9% so make it a short term loan about 36 mo and under $10,000.
Good Luck your not the first and you wont be the last.
2006-10-31 01:10:11 · answer #3 · answered by cardog 3 · 0⤊ 0⤋
I am not sure about the laws in the State of Texas. What should happen, as in my case in Ohio, the cars should be appraised. If the cars are worth more than the loan, the difference should be split; each will be required to obtain a new loan in their own name. Therefore, all debt from the marriage will be split and each is responsible for their own debt. Make sure you have all financial institutions know that you are no longer married. That way, you retain your financial identity and you will not have future problems, hopefully. Good Luck!
2006-10-31 01:00:53 · answer #4 · answered by icemountian8 3 · 0⤊ 0⤋
I had this same problem with my ex-husband. We had a bunch of debt (including a car note) and when he left, he also stopped paying all the bills we had together. Creditors don't care if you divorce or not, they care about getting their money. Since you co-signed, if your ex does not pay, you are responsible for that debt. If you don't pay then the collectors will go after your spouse AND also you. They have your social security number so they can even take legal action against you if they don't receive payment.
Ultimately, I took all the debt that was under my name and whatever I had co-signed on and paid it off. I called several banks myself and explained the situation and a lot of them were willing to work out a deal with me.
Good luck. I know it's frustrating but your credit is on the line.
2006-10-31 00:48:44 · answer #5 · answered by jazz_lover_25 3 · 0⤊ 0⤋
i am not sure about texas law however if you co signed for a loan you are jointly and severally liable, this normal standard practice, and i dont think it would be different in texas, this also means that if you or your wife was to pass away the debt would be passed on to the surviving partner, so i do not believe that divorce would alter it
you would need to read all of the contractual obligations of a co signiture. regards LF
2006-10-31 00:42:16 · answer #6 · answered by lefang 5 · 0⤊ 0⤋
Any lawyer worth their salt will ASK that you be removed from her debts, and she removed from yours. However, a Judge might very well make you pay for the car, regardless of who is responsible for the debt on paper.
Talk to your lawyer, that's what you are paying them for, make sure that ALL debts are severed. Remember if there are any credit cards in Both your names, or that she is a legal user on, make sure there is a clause in the divorce that you are not responsible for any charges or debts incurred AFTER the separation date...not just the divorce date.
Good luck!
2006-10-31 00:40:12 · answer #7 · answered by Silly Me 3 · 0⤊ 0⤋
You will probably need to get yourself off of that loan agreement.
I don't know what the judge would decide..
Why don't you decide and include your decision in the filing which
both you & your wife agree to & sign in the Texas no-fault divorce.
2006-10-31 00:40:40 · answer #8 · answered by Anonymous · 0⤊ 0⤋
No, the Judge cannot remove you from the loan. Your wife can try to refinance to get your name off the loan.
2006-10-31 00:40:30 · answer #9 · answered by meggs4 3 · 0⤊ 0⤋
Honestly it depends. my husband and his ex wife had a car loan together and when they got divorced the judge said that since she was going to be the one driving the car, that she should refinace the car and just put her name on the lon. but can u trust your ife to do that? my husbands ex still hasnt done it and weve been together for a year.
2006-10-31 00:39:36 · answer #10 · answered by Azie 2 · 0⤊ 0⤋