I can’t refinance the car loan into my name because of my credit. What can I do to keep the car?

Divorce attorney Jason BowmanQuestion:

My soon-to-be ex-wife and I have a car loan together. She is insisting her name be taken off the loan, but I can’t qualify for any refinancing thanks to her ruining my credit.

Do I have any way to protect myself from having to give up the car?



First, let me preface my answer by stating that I am not licensed to practice in the state of Tennessee. Cordell & Cordell does have divorce attorneys in Tennessee and will be happy to discuss your case with you.

You are facing an issue that many couples face in a divorce; you have an asset that is encumbered by a debt that you are both liable for. Unfortunately, the only way a creditor would release either of you from this debt would be to refinance the debt into one person’s name.

If you are unable to do that, a lot of couples include an indemnification clause in a settlement agreement where one party would agree to indemnify the other from any liability or costs associated with a default of that debt.

You should speak to an attorney in your jurisdiction to get specific advice as to what your options may be.


Jason Bowman is an attorney in the Louisville, Kentucky, office of Cordell & Cordell. He is licensed in the states of Kentucky and Texas. He received his Bachelor of Science in Business from the University of Louisville, and received his Juris Doctor from Texas Wesleyan University.

End of Content Icon

Leave a Reply

Your email address will not be published. Required fields are marked *