Section of car loan in case of divorce
Living in a marriage, spouses often cause trouble with loans, without thinking about what will happen to the payments on it in the event of a divorce. At the same time, the division of loans during the division of property is one of the most acute and complex problems.
Car as joint property in case of divorce
Family law establishes a rule according to which everything acquired by spouses during marriage is their jointly acquired property, and all debts incurred during this period must be divided equally between the husband and wife upon divorce. This rule also applies to a car loan, which is recognized as indivisible property, and is awarded only to the husband or wife upon termination of marriage.
If a loan for a shared car was taken out by spouses and was paid from shared funds, then after the divorce it must be repaid by both parties, unless otherwise established by agreement or court decision.
Как делится автокредит при разводе?
A car loan can be divided in two ways:
- by entering into an agreement between the parties;
- through a tribunal.
If a peaceful solution to this problem is available, then this is the best option. The spouses can enter into a settlement agreement in any form between themselves on how the loan will be repaid in the future. Of course, it is best to enter into a written agreement and have it certified by a notary, having previously visited the bank to clarify the remaining debt and to notify the bank of the change in the status of the borrower(s). In the future, if disagreements arise, such an agreement can be appealed in court.
How is a car purchased on credit divided in the event of a divorce?
If there are no options other than going to court, then you need to prepare well, because often one party tries to transfer the car loan to the other party. You need to:
- send a request to the State Automobile Inspectorate and demand a ban on re-registration of the car;
- contact the bank to obtain a certificate of the remaining debt (this step is difficult if the agreement with the bank is drawn up for the opposite party, because in this case the bank will have grounds to refuse to issue the necessary information);
- prepare a copy of the loan agreement and have it notarized;
- file a lawsuit with the court, providing all the necessary documentation on the loan (if the amount of the claim is more than 15,000 UAH, which is almost always the case, then you need to go to court);
- in the claim, you must specify the requirement for the court not only to determine the method of further repayment of the loan and division of the credit car, but also to establish the procedure for re-registering the document for it if it goes to the wrong party to which it was originally registered.
Such legal proceedings may not only be complicated, but also lengthy, because, in particular, it may be necessary to conduct a commodity examination that does not take into account any improvements to the car (tuning, etc.).
Section of the loan for a car in case of divorce
Dividing car loan responsibilities during divorce is difficult. Even if there is a minimal opportunity, you should try to resolve this issue peacefully, without resorting to court. At the same time, most often, going to court is the only way for the plaintiff to protect his rights and interests.
