Legal Question in Family Law in California
My wife has suddenly filed for divorce. In the petition she has only asked for the divorce itself and her maiden name restored. We have no kids or property to divide other than two vehicles. She did not include the vehicles in the petition because she knew we would agree on dividing them. We have agreed that I will keep the older car which is paid off and she will keep the newer car that still has monthly payments. She has signed the older car over to me, however, the dealership has said that in order to remove my name from the newer car loan, she would have to refinance it in her name only. This will increase the interest rate and the car payments for her significantly. Is there a way to leave this car loan in both of our names, but sign and notarize some kind of separate agreement saying she is legally responsible for it? Would something like that hold up in court if she defaulted? If she had an accident in it and hurt someone, would I be responsible too? If I stayed on the loan, should I also stay on the car title? A friend mentioned a form called a Marital Settlement Agreement that we could have notarized, would that be a legally binding agreement?
2 Answers from Attorneys
You need to pick up a copy of Nolo Press' book "How to Do Your Own Divorce in California." It will walk you through all these issues and provide all the forms you need, including a sample MSA.
This answer should not replace the legal advice given during an office consultation with an attorney skilled in California family law.
You can put specific terms in the marital settlement agreement (MSA) about the continued ownership of the car so its clear that your wife would be solely responsible for the debt on the car and that she must keep the car properly licensed and insured. You may require a certain policy limit minimum for any auto insurance coverage she carries to be certain that the car is not underinsured. Having language in the MSA saying you have a right of reimbursement from her for failed car payments, accidents etc as well as attorney fees is also a good idea.
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