Divorce is not only emotionally difficult for you but it is also difficult for your financial condition. How?
When a marriage ends, individuals split assets and go separate ways. But, what happens to liabilities such as an auto loan?
In an ideal world, both the individuals assume the responsibility of the debts they created and part ways. Unfortunately, the reality is different. So, take care of debts after a divorce.
The Legal Liability of an Auto Loan
Do not believe that just because the divorce agreement holds your former spouse responsible for the auto loan, he/she will make regular payments. It is plausible that he/she may not make payments.
You must remember that the divorce agreement is separate from your loan contract. Lenders do not give importance to the divorce agreement. Your former spouse may be responsible for the loan in the eyes of a court. But, if you applied for a joint auto loan, lenders will hold you accountable for the loan as well.
How to manage an Auto Loan after Divorce?
It is important to remember that your marriage may be history, but a loan will continue to affect your present and future.Auto loansdivorce agreementassetsliabilities
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