QUESTION
Would I be responsible to pay half of the difference from a cars worth vs what’s left on the loan?
Asked on Mar 23rd, 2025 on Divorce - New York
More details to this question:
I’m on a car loan with my ex-partner. We have gone through mediation to settle finances. He has been the main driver of the car since it was financed last May. I left at the beginning of August 2024 and he has had the car since. We came to an agreement in mediation that he would take possession of the car and must refinance it by April 2025 to get my name off the loan. If he is unable to refinance it by that time the car has to be sold. It is now the end of March, I don’t know if he actually tried to refinance it or not but he said he tried to sell it and was offered the Kelly blue book amount of 16,055. The loan is 21,000.00. He’s now trying to tell me I have to pay for half of the difference of 5,000. I also have emails and text messages of him saying that he would pay the loan and whatever is left over. Am I responsible to pay half of the 5,000 difference? I’m worried he may take me to small claims court if I refuse to pay it.
1 ANSWER
4 Awards
The issue is whether you have an executed settlement agreement as part of the mediation process. If yes, then the answer is: it's whatever the agreement states you're responsible for. If it's silent on the issue, then you're not responsible for paying the loss. If you don't have an executed agreemnt, then this is an issue which must be resolved in further mediation. Schedule a consult with a Divorce Attorney in your area for a full assessment.
Answered on Apr 10th, 2025 at 2:30 PM