My husband purchased a car while we were together. The loan and title are in his name, but I have possession of the car (I live in a different state than him). He has two cars himself. I have our son. What are my options for keeping the car? The loan cannot be transferred into my name as I have bad credit.
Since you submitted this question with the divorce category, talk to your matrimonial attorney. The ownership of assets AND the responsibility for debts should be expressly addressed in your divorce agreement. The fact that you have possession and that he has two other cars, doesn't mean anything legally, although perhaps morally you might think it should (from a fairness standpoint).
You indicated that you both live in different states. That might raise the issue as to which state law should apply (conflict of laws).
The loan has to be addressed. If the divorce isn't settled perhaps you can pay off the loan and get the car as part of the divorce. Perhaps some of the settlement proceeds you might get can be applied towards that goal.
To obtain ownership of the car you'll have to have your ex (or ex-to-be) sign over title to you.
All these formalities are vital to address. If you're driving a car owned by your husband or soon-to-be-ex husband, who is it insured with? If your husband/ex has the insurance, are you covered? If you're in another state and/or divorced, the coverage may not be valid. That could be a MAJOR issue and risk.
The loan document for the car may restrict the car from being permanently used/based out of the state in which the loan was made. You need to address the status of the loan as well.
So, your options are having title transferred to your name and paying off the loan, or transferring title and having the lender permit you to become the lender or add you to the loan with your husband/ex left on as a co-borrower/guarantor.
Get a matrimonial attorney to help you.
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