My CL partner says he is entitled to the taxes

[Lainey]

Scenario
<O
Co-owners of a vehicle live common law.<OBoth parties have paid the loan, insurance and maintenance on the vehicle.<OThere is an outstanding amount still owed to the bank. <OThe vehicle was written off in an accident.<OThe insurance company has offered to pay “blue book” rate plus applicable taxes
Prior to the accident, the common-law relationship breaks down and the parties are splitting up.<O
<O
Question
<O
Do both parties receive an equal amount from the insurance settlement, or does the party purchasing a new vehicle receive half of the blue book rate plus all taxes? <O
<O

 

[standing on the sidelines]

to me the bank gets their money first and since they were co-owners whatever is left over is split equally.

 

[NBDad]

Typically the bank would have a lien against the vehicle for just such an occurence.

In any event, the bank gets their money first, then the remainder is split equally. Since both parties paid into it, both have a claim against the asset. (as in any business relationship)