Legal Question in Banking Law in California

Can the bank legally keep my name on a car loan when I am divorced from my husband and the car was given to him in the divorce decree? The title was also transferred into his name. When the loan was taken, it was solely based off of his income as I did not have a job. I am afraid he will stop making payments and this will affect my credit, but the bank says they will not remove my name unless he refinances the loan, which he is unable to do because of poor credit. What can I do?


Asked on 7/23/10, 7:24 am

1 Answer from Attorneys

The bank is entirely within its rights and is following completely standard practices. The divorce court can allocate assets and debts between the two of you, but it is unconstitutional for the courts to try to force a creditor to rewrite its contract with you to release you of liability you voluntarily accepted. So the court has ordered he pay, but it can't force the lender to let you off the hook if he doesn't pay. Your remedy would be to take him back to the family court on a contempt of court citation for not following the divorce decree, and for an order that he reimburse you if you had to pay anything to preserve your credit.

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Answered on 7/23/10, 10:30 am


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