DIVORCE AND VEHICLE PAYMENT
Hello - The suggested retail value of my trailblazer is $18,785, but the trade-in-value is only $13,785 or some odd dollars. Our payment is $598.12 a month. I'm looking to have a smaller payment. My husband and I have talked about possibly divorcing and I will not be able to make the payments on my own because financially I couldn't afford it. I know I can try to sell it outright, but if it doesn't sell then what could I do? I need help. Thank you!
[Unsigned]
[Uncle Jim is not an attorney and can not give legal advice - just Uncle opinions.]
Unsigned,
Your situation should be addressed in the divorce agreement. If you have no other vehicle, need it for commutation, transporting children or any other necessity; your attorney might be able to establish “need.” Perhaps (even pre-trial), financing could be recast to provide lower monthly payments over a longer period of time.
Divorce agreements are almost infinitely variable. Your attorney can request that some percentage of the payment remain your ex-husband’s obligation. You and your attorney have to set priorities. If this vehicle is high priority, put it near the top of your list. If having an “all cash” settlement is more important, you may have to accept one combined periodic payment to cover all expenses.
Barring unusual circumstances, both of you co-own the vehicle. If it is sold the profit or loss simply becomes an item for settlement. If possible, sell the vehicle privately. Do some independent research. You might want to keep a vehicle with positive equity or long life expectancy; dump a loser while it is still 50/50.
“Book values” are about as reliable as fortune cookies.
Everybody’s Uncle
