What happens to a car loan in a divorce?

What happens to a car loan in a divorce?

When going through a divorce, some states may award you funds to pay off the remaining amount of your auto loan. Review your divorce decree to see if it contains a Hold Harmless Clause. This is when the law requires you to hold your former spouse harmless on any remaining joint vehicle debt.

What happens to finances when you divorce?

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At Divorce, Debts Do Not Part Even if the spouse who assumes responsibility for the property pays the existing mortgage, both spouses will still be obligated to pay the debt. The divorce decree cannot terminate your financial obligation to your creditor.

Who gets the vehicles in a divorce?

Typically, the party who used the vehicle most before the divorce will be awarded the vehicle. For example, if one spouse uses the vehicle for transporting the children the majority of the time, they will most likely be awarded the vehicle.

What rights do I have if I split up with my partner?

If a cohabiting couple splits up, they do not have the same legal rights to property as a married couple. In general, unmarried couples can't claim ownership of each other's property in the event of a breakup. Gifts made during the relationship remain the property of the recipient.