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Divorce and Car Loans


In every divorce situation, the time comes to decide who gets what debt. Car loans are very common instance of joint-debt when dealing with a divorce. Divorce agreements may state who is responsible for the car loan or a portion of it. However, that is an agreement about who is supposed to pay exclusive to the creditor. In reality, whoever is supposed to pay as per the divorce agreement must actually do so to avoid credit complications for both parties involved.

The loan agreement is still completely separate from the divorce agreement in the eyes of any creditor. A lender looks at both parties to approve the loan, thereby even if one party becomes responsible for paying off the loan as per a divorce agreement, both parties remain on the hook credit-wise if those payments fail to be made.

Unless your name was removed from a loan a per the divorce agreement, creditors are hold no regard to such agreements in terms of outstanding loans or accounts. Not being responsible for paying the debt has no bearing or your continued responsibility for the loan or account’s correlation to your personal credit.

For more information about all types of credit situations or issues, visit or contact Sherwood Dodge. Our finance team has a wealth of knowledge regarding credit, loans, and financing options when it comes to vehicles!

Financing Team
Sherwood Dodge

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