Owning and maintaining a vehicle has become more expensive than ever – not just in Georgia, but across the entire world. Although high gas prices are a major factor, you also have to consider things like car insurance, repairs, and the cost of the vehicle itself. Due to inflation all of these costs are climbing steadily. One of the key benefits of marriage is the ability to tackle rising costs more efficiently with two people instead of one. Along with the price of housing and groceries, spouses can share the cost of a vehicle. But what happens to your auto loan after you get divorced?
To answer this question and many others that often arise during a divorce, get in touch with a qualified family law attorney in Georgia. Our legal professionals can answer any questions you might have during your first consultation. From there, we can guide you toward the best possible outcome as you approach divorce. In addition to maintaining your financial security during this difficult time, we can help you resolve non-economic matters such as child custody. It is best to book your consultation as soon as you know divorce is inevitable.
Your Debts are Also Divided
The main thing to remember about all debts is that they are generally divided between spouses. And just like assets, there are two types of debts — marital and separate. Marital debts are those that you accumulated during the marriage, while separate debts are those that were pre-existing prior to the signing of the marriage contract.
The same logic applies to car loans, which means that you will each be liable for roughly half of the amount owing.
What are My Options?
You have a number of options in this situation. If one spouse wishes to keep the car, they can refinance the loan and transfer complete ownership of the car (and the debt) to your name. In order to do this, you will need to prove to the lender that you are capable of actually paying off the debt on your own. You can also get a co-signer (such as a new partner) to help you get approved for refinancing.
Perhaps the most obvious option is also the simplest: Sell off the vehicle. By doing this, you can eliminate the debt and deal with this concern in a straightforward manner. This means that there will be no issues or disputes over the debt in the future. However, it also means that you may need to find a new vehicle – which could be inconvenient.
Enlist the Help of a Qualified Attorney Today
If you have been searching for a qualified, experienced divorce attorney in Georgia, look no further than Lankford & Moore Law. Over the years, we have assisted divorcing spouses with a wide range of issues – from financial matters to custody and everything in between. Even seemingly small details like car auto loans deserve attention, so book your consultation today to determine the best route forward.