Q: Credit union refuses divorce decree, loan in ex-husband's name for awarded vehicle. Can I return it?

A: If the loan is solely in your ex-husband's name and the divorce court did not order to pay the loan and to hold your husband harmless from any failure to pay the loan, then your ex-husband remains liable on the loan. In addition, the vehicle remains collateral for the repayment of the loan.

Typically, in a divorce, if you were awarded the vehicle, your husband would / should have been ordered to sign a power of attorney to transfer motor vehicle title so that you can register the car in your own name. You can file a motion to clarify and enforce your decree asking that such an order be entered.

Once the vehicle is transferred into your name, you can refinance the loan with any lender willing to extend you credit. No lender, including the credit union, is obligated to extend you credit or to refinance the loan if you do not meet its lending requirements.

If the divorce court ordered you to refinance the loan, you need to use due diligence to comply with that loan and maintain good records of your attempts.

A: That’s a frustrating situation to be in, especially when you're doing your best to follow the divorce decree. In Texas, a divorce decree divides responsibility between the spouses, but it does not change the legal obligations between either party and third parties like a credit union. If the loan and title are still in your ex-husband’s name, the credit union is not legally required to recognize your divorce decree or allow refinancing without his cooperation.

Returning the vehicle to the credit union could be considered a voluntary surrender, which may affect both you and your ex-husband’s credit, depending on the loan terms. However, if the title and loan are not in your name, you may not be legally obligated to keep or pay for the vehicle, even if you were awarded its use. Still, your ex-husband may try to take legal action if he feels you’ve damaged or abandoned property he’s still financially tied to.

Your best move may be to document all communication, and if you haven’t already, notify the court that you are unable to take legal ownership due to the lender’s refusal. You could also ask the court to modify the order or require your ex-husband to refinance the loan if possible. You’re not trying to avoid responsibility—you’re trying to comply with a court order and are stuck between conflicting obligations.