As long as both of your names remain on the account, the creditor can go after both of you for payment. So, if your spouse agrees to pay off the auto loan since they're driving the car and he or she skips payments, the bank can go after you for payment if you're still on the auto loan.
You're generally protected if the vehicle and the attached loan name only your wife. ... He may do so if your income is significantly higher than your wife's or if you're considered at fault for the divorce. If that happens, you become responsible for the debt even though you ordinarily wouldn't be.
If the funds to buy the item were earned while married, the item is then a community one. For instance, if a spouse buys a car through a loan while still married, the car is community property. ... The debts, as well as the assets, are equally owned between the spouses.
California is a community property state, meaning that all community property and debts that are acquired during marriage, including real estate and vehicles, are considered to be the joint property of both spouses and are distributed equally.
You need an order from the Court determining that the car is your non-marital property. If you are not able to prove that the car is your non-marital property, then the Court can award the car to you or her.
“In short, paying your loan off before the divorce simplifies the division of assets. If you can pay it off, it may be worth doing so to prevent future stress. ... Even if you do have to pay some prepayment penalties, it may be worth a less stressful court process to pay the loan off early.
What Is a Divorce Loan? A divorce loan is a personal loan used for divorce-related expenses. Personal loans are unsecured loans that allow you to borrow a specific amount of money and pay it back, usually in monthly installments.
Your wife will need to refinance the loan under her name. Refinancing is the only way to change the terms of your car loan and the people it includes. This also means that the interest rate (APR) and length of the loan will change. ... On average, car owners pay $85 less every month by refinancing their auto loan.
Because California law views both spouses as one party rather than two, marital assets and debts are split 50/50 between the couple, unless they can agree on another arrangement.
Simply put, it is possible to remove the cosigner, but you'll need to refinance, sell the car and pay off the loan, or take advantage of cosigner release options that exist for your loan.
The general rule in California is that a spouse ceases to be responsible for any debts incurred by the other spouse once they have separated. ... Necessaries of life, like common necessaries of life, are any items that are necessary to sustain your spouses' station in life.
Typically, the only way to get your name off the loan is for your spouse to refinance it in his or her name alone. If your spouse can't qualify for an auto loan by him or herself, or if he or she refuses to refinance the auto loan, it's worth the time to speak with a lawyer about your options.
The only way to take over the car loan in your name is to have it done legally; otherwise, the car will remain in your husband's name, and you will simply be making the payments. ... The lender will have to make sure that you qualify for financing before they will transfer the loan or add you to it.
Can You Refinance a Car Loan to Another Person? ... While refinancing a car loan can remove a cosigner or co-borrower, you can't refinance the car in someone else's name and remove your name from the title. This can only be done by selling the vehicle.
Many people borrow money from family members, and such loans feature regularly in divorce and financial remedy cases. ... A soft loan is a loan where there is no – or no immediate – expectation of repayment, or where there will not be a significant consequence to repayment being delayed or indefinitely postponed.
The cleanest way to divide the home's equity is to sell the house. Once the couple retire the mortgage debt, pay taxes and the sale-related expenses, they split the remaining money. By selling the house, the two exes can more easily untangle from each other's lives, Ballin says.
Q: Are separate bank accounts marital property? Separate bank accounts are marital property if they are considered to be commingled. This means that if you or your spouse have depositing money into or used the funds from the account, it is considered to be commingled and must be equally split in a divorce.
The Elements of a Fair Settlement in Divorce:
Parenting plan and child custody (parenting time); Child support and related expenses. Alimony / maintenance / spousal support / spousal maintenance (determining if it applies and if so, the amount and duration);
In equitable distribution states, premarital property, gifts and inheritances are usually excluded from division. The central component that makes community property states different from equitable distribution states is how the court treats marital assets.
In California, there is no 50/50 split of marital property.
When a married couple gets divorced, their community property and debts will be divided equitably. This means they will be divided fairly and equally.
That means technically, either one can empty that account any time they wish. However, doing so just before or during a divorce is going to have consequences because the contents of that account will almost certainly be considered marital property. ... Funds in separate accounts can still be considered marital property.
Unfortunately, being a cosigner doesn't give you rights to the property, car or other security that the loan is paying for. You're simply a financial guarantor, and if the primary signer fails to repay the debt, then you're next in line to make it happen.