In Texas, the most recent divorce statistics show about 2.9 divorces per 1,000 residents. If you find yourself at a place where divorce is your best option, the financial implications are one of the most important aspects to work through.
Throughout the divorce process, the car might be the least of your worries, last to the children, home, and other assets. Yet, you may need to find out how to get a cosigner off a car loan. Figuring out car payments during your divorce will make it easier for both parties in the long run.
Read more: In Case of Divorce What Happens to the Vehicle? A Used Car Dealers Perspective
Can a Cosigner Be Removed from a Car Loan?
There’s no yes or no answer to whether or not a cosigner can be removed from a car loan. Unfortunately, it all depends on the type of loan you originally signed.
If you have a cosigner release car loan, it will include stipulations about when you can remove the cosigner. For example, after the primary car owner makes 50% of his or her on-time payments, the lender may release the cosigner.
How to Get a Cosigner Off a Car Loan After Divorce
During a divorce, releasing an auto loan cosigner is important since it affects his or her credit. It may be easy to determine who gets to take the car, but the cosigner has no protections if the primary owner starts missing payments.
If you have an auto loan that allows cosigner release, you can move forward with the process. You’ll need a cosigner release car loan letter to get your former spouse off of the loan. In addition to the letter, your lender may also ask for other documents.
Refinance Your Loan
Can I refinance a car loan with a cosigner? Refinancing is a great option if you can’t release your cosigner from the loan. Through refinancing, you can make the car payments more manageable for you to take on your own.
If it’s still necessary to have a cosigner, replace your former spouse with someone else who can take on the position.
Read more: Should You Consider Drowngrading Your Vehicle During the Economic Crisis?
Sell the Car to Pay Off Your Loan
If you’re the primary car owner and you can’t refinance to make payments manageable, your best option may be selling the car. You might be wondering, “How can I sell my car in Houston during a divorce?”
While you do have plenty to worry about, selling the car is an easy way to get one thing off your plate. Follow these easy steps to sell your car:
- Receive an accurate estimate of the current car’s value
- Collect necessary documents such as the car title and bill of sale
- Post your car online for the best offers or sell quickly to a retailer like Shabana Motors in Houston, Texas.
Car Loans as Part of Divorce Decrees
Cars are an important part of divorce that can often go overlooked. During your divorce, make sure all debt is considered as part of the divorce decree. By including all debt, it’ll be clearer about what to do with the cosigned car loan.
Contact Shabana Motors today to buy a new car and keep your life moving forward. We provide in-house financing to make it easy even if you have poor credit.
Used car dealerships like Shabana Motors located at 9811 SW Freeway in Houston, offers in-house financing and will also buy your car and will warranty your car for 2 years/24K miles, when passing Shabana Motors 5-star inspection process.
