One of our vehicles is in my name, but plan is to give to wife upon divorce. Vehicle has a loan with a payoff date still a few years in the future, not til 2024. Current plan is I will continue to assume the debt until paid off (as part of the equitable distribution). I am not sure the best way to handle this in that she would have possession of the vehicle yet I am liable. I don’t like the idea of being on the hook legally for a vehicle not in my possession yet am financially liable for. I assume the best course of action is to pay it off ASAP to avoid the potential future issues, but what if that is not viable?
If your wife is keeping the vehicle then she must be the one financially responsible for it. The separation agreement language should require her to refinance the vehicle loan by a certain date or else the vehicle shall be sold and the loan paid in full.
You can also include language that she is to hold you harmless and indemnify you for all expenses associated with the vehicle and its operation.
Anna Ayscue
Attorney with Rosen Law Firm Cary • Chapel Hill • Durham • Raleigh • Wake Forest
Rosen Online | Unlimited confidential access to a North Carolina attorney for $199/mo - click here
The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service only, a full discussion with an attorney should be undertaken before taking any action. The information posted on this forum is available for public viewing and is not intended to create an attorney client relationship with any individual. These answers are provided for informational purposes only, a person should consult with their own individual legal counsel before taking any action that could affect their legal rights or obligations.
I am attempting to pay off the vehicle with a HELOC on my home. The financial institution is requesting the separation agreement be recorded since the ex would need to sign the deed of trust on the home. This would then become public record. In my SA, I have the clause (as per your example template) to not have the SA become public record. I saw the note about a MoA, but not sure what all this means or how to go about it? Can you answer this here or is it getting into too much minutia and I need to contact an attorney to sort this out? Could this be handled within the umbrella of the Online program you offer?
UPDATE: No longer required, bank dropped the requirement for ex to sign
I’m glad you were able to resolve this. However, this would have been my answer:
If a separation agreement prohibits that it be recorded at the register of deeds or otherwise become a public record, then the parties must execute a Memorandum of Separation Agreement which can be recorded.
The Memorandum of a short-form version of the separation agreement which merely puts the public and creditors on notice that a separation agreement exists, but it does not give any details of the settlement contained in the full separation agreement and property settlement.
Anna Ayscue
Attorney with Rosen Law Firm Cary • Chapel Hill • Durham • Raleigh • Wake Forest
Rosen Online | Unlimited confidential access to a North Carolina attorney for $199/mo - click here
The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service only, a full discussion with an attorney should be undertaken before taking any action. The information posted on this forum is available for public viewing and is not intended to create an attorney client relationship with any individual. These answers are provided for informational purposes only, a person should consult with their own individual legal counsel before taking any action that could affect their legal rights or obligations.