How to Get Your Ex-Spouse's Name Off Your Car Loan

Dividing property and debt during a divorce is difficult and often emotional. Parting ways with respect to joint loans is even more challenging. Perhaps a divorce decree stipulates that one spouse keeps the car and assumes the loan payments. One of the problems with joint loan debt in a divorce is that you both signed the loan contract and agreed to the auto finance company that you would make a set number of payments for a set amount of money. A divorce does not remove you from that binding contract, no matter what your divorce decree says.

Instructions

1

It is possible to refinance the loan under your name. Refinancing not only puts the loan solely in your name, but it also may result in a more favorable interest rate and lower monthly payment. You will need to be able to qualify on your own based on your personal credit history, which of course includes other joint debts incurred during the course of your marriage.

Be aware that modifying or refinancing the loan requires all parties to agree. This includes your spouse.

2

Secure a personal loan through your financial institution that you can use to pay off the loan in its entirety. If the current auto finance company is not willing to work with you to modify or refinance the loan, the next best option may be to obtain your own financing. This is not without its complications, as you will need to be able qualify based on credit and collateral, which is sometimes tricky during a divorce.

3

If all else fails and you are not able to remove your former spouse from your loan, continue making the payments and be aware that your default or late payments affects his credit too. Pay the loan off as quickly as your are able.