Little Rock, AR asked in Bankruptcy, Divorce and Collections for Arkansas

Q: My daughter is getting divorced her car is in husband's name only. is she responsible for the balance if she returns car

The car my daughter is currently driving is financed in her soon-to-be ex-husband's name only. At one point the vehicle was paid off and without her knowledge he refinanced both her car and his truck for purposes of generating capital. The bank has threatened to repossess the car if she does not put it in her name. Because we are in Arkansas and we are a community property state my question is, is she responsible for the balance on her car even though her name is not on the loan

1 Lawyer Answer
Stefan K. McBride
Stefan K. McBride
  • Hope, AR
  • Licensed in Arkansas

A: Arkansas is not a community property state, but that doesn't change the answer to your question. If her name is not on the car note, she cannot be held responsible for that debt unless the divorce judge makes her responsible. Even in that case, the only person the financing company can come after is the husband. In that case, he might take her to court for contempt for not paying for the car.

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