Personal Finance & Money Asked on June 7, 2021
Not sure if this question should be here or in the law exchange, but basically my dad cosigned my car loan for the purposes of rate reduction (as I had virtually no credit history at the time). My dad didn’t put any money down, doesn’t pay for any principal, and hasn’t paid any of the loan’s interest. I pay for everything. For all functional purposes, it is totally my vehicle and he only co-signed so I’d get a lower interest rate.
Fast forward a few years and my dad and stepmom are getting a divorce. I don’t know the particulars of divorce settlements, but does the fact that he co-signed my auto loan mean that technically it’s his asset and would be subject to any divorce agreement? If so, how can I amend this? I do not want to be involved in that process whatsoever, particularly financially.
The co-signer is responsible for paying the loan back if you can’t or don’t want to pay. Being co-signer doesn’t give them any rights to your car. What happens in the private life of the co-signer, like divorce, makes no difference, they are still co-signer.
In extreme situations, like your dad co-signed but it was actually your wealthy ex-mother in law who would have paid, well, that’s just too bad for your dad. Shouldn’t have co-signed.
Correct answer by gnasher729 on June 7, 2021
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