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Divorced Car Loans

Separating a Car Loan After Divorce

If you and your ex had joint finances, splitting them after a divorce can be tricky. Very few separations are amicable, meaning there is a lot of talking to do when emotions are high. If you need to separate a car loan after a divorce, here’s how.



Divorce annuls the civil contract between two people. It does not absolve either of you from joint finances or liabilities. That means you have to sort those out separately. As long as the debt is in joint names, you’re both liable for it, including car loans. If you want to get your name off that debt, you have three options.

  • Have your ex-partners name removed from the car loan contract
  • Sign a waiver contract with your ex
  • Take a new car loan

Removing a Name From a Loan Contract

Not all lenders will agree to modify an existing loan agreement because having two borrowers means having two people to pursue should anything go wrong. It’s always worth asking though as some lenders are more accommodating than others.


Be prepared to send them paperwork including divorce papers, financial records and any agreements you have between you and your ex regarding payments, alimony or outstanding debt. Your lender will give you the specifics.

Sign a Contract With Your Ex

If your lender won’t remove your ex from the car loan contract, you can attempt to come to an agreement where one takes on the loan from the other. A simple contract between the two of you, notarized by your lawyer, banker or state official will make it legally binding.


This is a good course of action should your partner be amicable enough to agree. The car loan itself is unchanged, but you now have a legal agreement absolving you of cost and benefit of the car.

Take a New Car Loan

If the first two options aren’t possible, you can refinance the loan with a single personal or car loan. If you qualify for either, it can be a good way of starting afresh once ownership of the car has been determined by the divorce settlement.


If you’re considering taking a new car loan, talk to Car Loan 4 You. They offer a huge range of car loans for all kinds of circumstances. For a no-nonsense loan from a no-nonsense lender, talk to us today.

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