How does this get settled?

iVillage Member
Registered: 08-10-2009
How does this get settled?
16
Mon, 08-23-2010 - 12:24pm

BM and BD divorce. BD is in the car business so both of them were furnished cars by the dealership. They owned an older car with almost 100k miles. BM wanted a new car since she will no longer get to use a dealership car. BD agrees to buying her a new car and using the car they owned as a trade in on it.

In the divorce decree it states that BD will pay the monthly payments on a specific car, specific loan, specific interest on loan etc.

Fast forward a couple years. BD has been making payments and has been paying more here and there when its affordable to try to pay it off because he doesn't want to take as long to pay it off. However, simply paying off the car isn't a possibility.

BM called a month or so ago and talked to him about buying a diff car. There is nothing wrong with her car, she has a friend that is selling their SUV and BM really wants it instead of her car. BM doesn't ask BD anything except if he thought the SUV was worth what the friends are asking for it. BD tells her he can't say for sure w/o seeing all the features or the SUVs condition but that it may be worth it. BD says BM should wait until her car is paid off so she has equity and gets money back from it. BD doesn't start a fight about it and thinks she is going to drop it.

BM calls again the other day while BD is at work and says that her sister wants to buy her car and that she wants to sell it to get the SUV.

BD was busy and couldn't talk and told her that he would talk about it later.

So here is the issue. BD agreed to buy that specific car and all the specifics of the loan. BD refuses to pay more for her to get another car. The loan is in BMs name. It sounds to BD like BM thinks he will just pick up the payments on a new car for her which he isn't willing to do.

So what should be done here is BM insists on getting new SUV?

A) Should BD continue to make the monthly payments until the original amount is paid off, directly to BM (which will be a little confusing since hes been paying more)?

B) Should BD refuse to allow her to trade in her car and insist she keep the car he bought her until its paid off?

C) Should BD tell BM he will not make payments on anything BUT the car they agreed to in the divorce and if she wants the new car she can take up the payments on it and he will no long make any amount of payments on her SUV?

There is nothing stated in the divorce about how such situation will be handled. All that is stated is that BD makes payments on the loan of the specific car. How neither lawyer thought to put something for this type of situation boggles me, as I am sure it happens all the time.

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iVillage Member
Registered: 06-28-2008
Mon, 08-23-2010 - 12:35pm
I guess the common sense thing to do is get a contract with BM that stipulates if any party defaults on the car loan(s), BM will be responsible for any financial repercussions.
iVillage Member
Registered: 07-31-2009
Mon, 08-23-2010 - 12:44pm
Am I the only person who is flabbergasted by the EX agreeing to buy BM a car after divorce?
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iVillage Member
Registered: 02-25-2009
Mon, 08-23-2010 - 12:47pm

From my understanding of your post, BD is required to pay for a specific car on a specific loan. Not just any car BM owns. Now, I haven't sold many cars, but I was under the impression that in order to sell a car, you had to pay off the title to transfer it to the new owner. This would be achieved by either paying off the car or getting a new loan/absorbing the unpaid amount into the new car loan. If my understanding is correct, it seems once BM sells the car BD is no longer financially responsible. If he wants to be nice he can find out the pay off amount and then continue to make payments directly to BM to payoff what would have been left, but I don't think he would be legally required to do so.

iVillage Member
Registered: 12-31-2009
Mon, 08-23-2010 - 1:20pm

If he is ordered to pay on a specific car and a specific loan, I would think BM's getting a new car nullifies that obligation. I would call my attorney to confirm this and BM would be on her own.


iVillage Member
Registered: 08-10-2009
Mon, 08-23-2010 - 1:39pm

He didn't buy her a car after the divorce. It was a part of the divorce agreement that they trade in the car they owned and buys her a new car.

His reasoning was that since she moved 2 states away, she would be more willing to work with him on visitations and not make him drive the whole way. Plus by getting her a new car he would know that his kids had reliable transportation since the other car had almost 100k miles and was an older model.

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iVillage Member
Registered: 08-10-2009
Mon, 08-23-2010 - 1:44pm

<<>>

If she was to sell it to her sister, her sister would take out a loan to take over the payments on the car. Which means that the loan that BD agreed to in the divorce would no longer exist as the result of BM.

<<< it seems once BM sells the car BD is no longer financially responsible.>>>

This is how we see it.

<<>>

We aren't sure about legally, I'm pretty sure hes going to have to get a lawyer to figure it out if she does go ahead with getting rid of her car for the SUV.

But its frustrating because they agreed on one thing. BM is willingly trying to change the agreement. BD is aggravated because shes already wanting to trade in a perfectly fine vehicle. Part of him wants to say if your going to be so ungrateful for the car I got you then you can sell it and buy your own. But the other part doesn't want to have to fight or deal with her on it because of the repercussions it could have.

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iVillage Member
Registered: 08-10-2009
Mon, 08-23-2010 - 1:47pm

<<>>

I hope this is true. Then he could leave it to his better judgment on whether or not to pay her directly the remaining balance or leave her with the result of her decisions. I honestly think he would just keep making payments directly to her.

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iVillage Member
Registered: 08-10-2009
Mon, 08-23-2010 - 1:52pm

<<>>

So if you had a contract where you were buying a specific car for your ex, that he chose, and 2 years later they want to change it, you would willingly change the contract to their benefit? I guess part of the decision would be how well you two get a long in which BD and BM don't get a long. BM is only nice when shes wanting something from BD, such as a different car. I'm not too sure he would be willing to re-contract with her so she can get a new car with out him getting anything. Perhaps he could re-contract with her and settle with paying off 50% of the remaining balance and they both win. He pays less money, she gets new SUV.

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iVillage Member
Registered: 06-26-2009
Mon, 08-23-2010 - 3:21pm
Eh. My divorce decree stated that Ex got to keep all our computers but was required to purchase a system for me out of his share of the money. This seems like the car is just part of the settlement.

 

iVillage Member
Registered: 07-31-2009
Mon, 08-23-2010 - 3:38pm

~~Eh. My divorce decree stated that Ex got to keep all our computers but was required to purchase a system for me out of his share of the money. This seems like the car is just part of the settlement.~~

Well, I've lived through 3 divorces with my Mom and 1 with my Dad, and considered myself a bit of an expert....in no situation did anyone have to purchase a new car/computers for the other person....I was just basing my shock on that :)

BD let BM keep the car that he was paying on in their divorce (and agreed to finish paying for it) in exchange for 50/50 custody....but she traded it in 2 weeks later (dumb, dumb, it was a new Altima) for a SUV...which freed him of the debt 100%.

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