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What is my best option for separating finances after divorce?

My divorce finalized at the end of December; my ex was awarded his truck and I was awarded my van. The decree states each vehicle is now our own, sole property and responsibility; however, the credit union that finances both will not honor/recognize the decree. The truck is the problem...in order to get the truck out from under me and nearly $24K of debt, my ex would need to requalify for it by himself...but he can't because his credit is shot and he has no cosigner. So as I've discussed with the credit union, these are my options...I'm so upset by this that I'm having difficulty making the right decision:

#1 - Leave the loan and title as is and let him continue making the payments on it (trusting that he will, which leaves me sharing the debt load) or sell it;


#2 - Requalify for the vehicle myself (w/ a cosigner) giving me control/ownership of the truck and sell it. The truck has negative value, so in selling it, I would need to take out a personal loan to cover the difference...I've asked my ex to make the payments since I'm taking on the liability, but he refused. (NOTE: I was considering this option so as to protect my credit and do whatever I could get out from under this burden even though it would initially be an added stress and it would let him off scott-free - NOT SOMETHING I WANT TO DO AT ALL! I just want to protect myself financially as much as possible.)

Are there any other options or ideas?!?! It's frustrating to go through all of the divorce proceedings only to find that financial institutions won't honor the court's decision. I want to cut ties with this man as much as possible as quickly as possible, but I seem to be running into roadblocks everywhere I turn. Weighing the pros and cons come out just about the same for either scenario. Any help or input would be much appreciated!!


Answer Question
 
bamii04

Asked by bamii04 at 2:28 AM on Feb. 2, 2011 in Money & Work

Level 2 (11 Credits)
Answers (8)
  • First off I am Sorry that you are going through this! DH works in home morgagte collections and he deals with this stuff a lot unfortantly those two options are all you have...if it was me I would let him keep the truck and just verify that he makes the payments ontime each moth for the remandier of the loan and if for example you check the day after the due date and it hasn't been made you've got seven days to get your ex to pay it or you can call the credit union and work out something where the wouldn't report it late or you could cover the payment if he doesn't and then make the court make him pay you back. Again I am really sorry...that is just what I would do!
    momofone072506

    Answer by momofone072506 at 3:33 AM on Feb. 2, 2011

  • I don't know what the guidelines are, but if he isn't making payments on the truck...isn't that going against the decree? You can see about reporting him with whoever is in charge of the decree if he refuses to pay. Then you can figure out the options to sell it...if he's not willing to fight for the truck, then make it gone. -Shrugs- I really don't know. Sorry you're going through that...Best of luck with your new life. -Hugs-
    Imortlmommy

    Answer by Imortlmommy at 8:56 AM on Feb. 2, 2011

  • I think that selling the truck will protect you in the long run
    rkoloms

    Answer by rkoloms at 9:59 AM on Feb. 2, 2011

  • I'm surprised the credit union won't abide by the decree, seeing as the decree is a legal document. I would suggest you take it up with a manager or someone higher up in the credit union. When my husband divorced his ex, they seperated out their cars and the bank gave them no problems. Could it be because your ex has bad credit and they don't think he'd pay the loan?
    HotMama330

    Answer by HotMama330 at 12:01 PM on Feb. 2, 2011

  • Consult question in internet lawyer and accounting. Divorce with kids you get the best part. luck
    GlitteribonMom

    Answer by GlitteribonMom at 7:52 PM on Feb. 2, 2011

  • Thank you ladies! This helped a bunch.

    @lmortlmommy - It would be going against the decree and I could probably take legal action, but he has been making the payments to me and then I pay the credit union (which I don't mind doing it that way because then I know FOR SURE it was paid). Thanks for the hugs!

    @HotMama330 - It's puzzling to me as well. It's a court order after all, but there's nothing that legally binds the credit union to make that change. To the credit union, they're just worried about making sure the loan is honored and, in my situation, keeping me on it is the one way they know it will be. To answer your question, his bad credit is exactly why they wouldn't make it that easy - but he hasn't even gone in to TRY!

    @Glitteribonmom - Yes, I did get the best part - my kids. While this is just a minor detail to get wrapped up, it's been a huge stressor also.
    bamii04

    Comment by bamii04 (original poster) at 8:16 PM on Feb. 2, 2011

  • A court decree does not mean that the banks have to just abide by it. They made a contract with you and him, that contract is still valid. This is how it works with mortgages too.
    Are you allowed to sell the truck since it is his in the decree??? yes, it would be going against the decree if he stopped paying, but good luck trying to enforce that. Or, wait to see if he makes the payments? Since it is still in your name, if he stops, you can still go claim the truck, right? And sell it then. Just a thought.
    Candi1024

    Answer by Candi1024 at 10:42 AM on Feb. 3, 2011

  • Go for global cash (Yugoslav dinara),partly,so it can help you anywhere,worldwide.
    Harshad M.

    Answer by Harshad M. at 7:39 AM on Feb. 6, 2011

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