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  • my name on his vehicle lease...

    My husband and I are going to work out a separation agreement. The main issue is of course the custody and care of our child. However, he leased a truck 3 years ago and still has a year left. At the time I thought I co-signed for the lease, but it turns out the ownership shows my name as the lessee. I can't recall if that was how the paperwork was worded, but now he is threatening to hand me the keys and stop paying. Of course he is already 30,000kms over the allowed kms because we were going to buy if out.

    Can he do that? Am I liable for this? I've got a call into the loan agency to find out why the loan is in my name when it should have been in his. I don't know what I can do about it.

    He is also telling me that since I have a credit card and line of credit that are only in my name that he will NOT help pay for them. He's even whining about me using my paycheque to make payments every month as that is "household" money and it is not his debt. Of course the money owed on these are from car repairs, groceries etc.

    Is this true? Is this debt considered joint? I'm thinking I will take on the credit card debt and line of credit (total of about $2000) personally in exchange for him signing an agreement to finish the lease of the truck and either pay any penalties upon return, or buy out the vehicle. I can't even drive the damn thing!

  • #2
    well I can tell you that the company that holds the lease will come after you if he stops paying and you do not start. Unless they have something that shows he was the loan holder instead of you their argument will be that you should have said something earlier, not three years later. Even if you just co-signed they have every right to come after you for the whole amount. That is what a co-signer does, guarantees the person will pay or else they (co-signer) will pay.

    I think that your option to you is a great one. Just make sure all the is are dotted and the ts are crossed.

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    • #3
      You would almost certainly be on the hook for the payments, household debt including credit cards is divided equally or shared upon seperation. Sounds like you may both need a little legal advice which you would certainly want for your seperation agreement, each indepenently.

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      • #4
        thanks. I was pretty sure that would be the case. I'm hoping I can get a copy of the original papers to see what I signed. Of course he doesn't have them anymore, but maybe the dealership does.

        I knew co-signing would make me liable, but if it's in my name first he knows I would take care of it if he dropped the payments, just to preserve my credit. I guess if it happens I can always sue him in small claims....

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        • #5
          I am not sure if this would be a good thing to go to small claims court for. Your best bet would be to make it part of the divorce settlement. All small claims will look at the the bill is in your name and not his. They would probably suggest to handle it with the divorce.

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          • #6
            ALL assets and ALL debts are to be divided equally. It does NOT matter whose name is on the debt.

            When you settle (aka equalize meaning you both walk away with same net worth), ALL things must be in the name of the person who is walking away wtih that item, be it debt or assets - otherwise things will go sour and one or the other will not live up to your settlement.

            Simply list all things - debts and assets (cars too), assign a value to it, decide who keeps it, or if you both will dispose of it, then do the math, transfer ownership, close debts, one writes a cheque to other, and then you are done.

            You can hire a 3rd party lawyer to do this - just tell them here is everything you have/owe and you want to split it 50/50 as of this date and tell them who gets what and what accounts you are closing. They will do the math for you - but you can do it yourself. I did the math myself and then wrote a detailed letter of instruction for our lawyer - close this, assign that, write this cheque, etc.

            There should be no room for games - you split everything 50/50 the day you separate or some date soon after that when you stop mingling your incomes and start support payments (if any).

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            • #7
              Thanks for the reply. I saw a lawyer on Monday and she said because it is a lease it doesn't factor in to equalization. if the truck was returned, then it would, but because we don't own it, we can't use it in the calculation. That's why I'm hoping he will sign something agreeing to continue the lease until it is up and then buy it out (and sell it if he wants) or pay the fees. If I can transfer "ownership" or the lease agreement, Iwould, but IDK if I can.

              Small claims would be the last option of course. And I beleive that they would consider the fact that I was supposed to be the co-signer. Likely they would only give me half of what I asked for, but it's better than paying it all.

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