My wife and I separated about a month ago. I kept my vehicle, which I own outright, and she took the vehicle we purchased together. Both our names are on the loan. She has told me she can no longer afford the payments on that vehicle and that she wants something “more affordable”. She asked that if she could trade-in the vehicle would I be willing to sign off my interest in the vehicle, to which I agreed. When that didn’t pan out, she said I could either take over the payments or allow it to get repossessed. I told her I could not afford an additional bill. After allowing my credit to get completely screwed up during my first divorce, I finally have it back to a good rating. The last thing I need is a repossession, especially in this transition period. Is there anyway I can be protected?
If the only property issue between the parties is this car, it may not be cost effective to proceed with litigation, but you will need to come up with some alternative for handling the car. I would look at all options including trading it in and selling it to a third party before you decide what is the best financial decision to make.