My wife and I got a divorce. Under the property settlement that the court approved, I got responsibility for some of our debt and she got responsibility for some of our debt. One of the things she is supposed to pay is the car loan on the vehicle she drives. The loan is in both of our names and apparently she is late on her payments because the bank has been sending past due notices to me. Can they do anything to me if she defaults?
The car loan you and your spouse got before the divorce represents a contractual promise from the two of you, to the bank that you would repay $x amount plus the agreed-upon interest in monthly installments over a particular period of time. Now that the two of you have split up, the court has indicated your ex-wife should pay the car loan, but your divorce proceeding was between the two of you. The bank was not a party to that action and the bank has never agreed to any alteration of the contract, nor has the bank agreed to release you from the obligation. The bank still has a legal right to seek repayment from either or both of you. If you end up paying to protect your own credit, you can file suit against your ex-wife under the terms of the divorce decree to enforce her obligation, but the bottom line is that the bank's rights have never changed.
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The car loan you and your spouse got before the divorce represents a contractual promise from the two of you, to the bank that you would repay $x amount plus the agreed-upon interest in monthly installments over a particular period of time. Now that the two of you have split up, the court has indicated your ex-wife should pay the car loan, but your divorce proceeding was between the two of you. The bank was not a party to that action and the bank has never agreed to any alteration of the contract, nor has the bank agreed to release you from the obligation. The bank still has a legal right to seek repayment from either or both of you. If you end up paying to protect your own credit, you can file suit against your ex-wife under the terms of the divorce decree to enforce her obligation, but the bottom line is that the bank's rights have never changed.
