NSW Car to be Repossessed - Ex Refusing to Pay Car Loan?

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Louise too

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28 November 2018
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Please help.

My ex and I are currently going through lawyers. We currently have money held in trust from the sale of the family home. In the meantime, my ex has the family car, which I have been paying a monthly car loan, rego and insurance for.

The car is in ex's name, however, the loan is my name. Ex is refusing to pay for the car loan repayments or the loan balance from the trust and wants me to continue paying $600 monthly car loan as well as insurance! As I have done this for the past 18 months. However, I am unable to afford this. And the car is due to be repossessed any day now.

I have pleaded with her to agree to pay out the car from the trust for the kids' sake. But she is refusing unless I agreed to give her almost all the money from the sale of the house and I will be left with just enough money to pay out the car loan.

Please help me. The lawyers said there is nothing they can do!

I don’t want to see the kids go without a car.

I already pay more for child support their $150 week sport and school uniforms.
 

Rob Legat - SBPL

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Go to the lender, explain the situation and seek a hardship variation. It won't fix the situation, but it could buy you some breathing space to sort it out.
 

Louise too

Well-Known Member
28 November 2018
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Go to the lender, explain the situation and seek a hardship variation. It won't fix the situation, but it could buy you some breathing space to sort it out.
Thank you for your time replying.
Yes. I have been keeping lender up to date. He froze the loan for me for 3 months. And payments had to be reinstated in January. I gave ex plenty of time. I am unable to keep up payments. However she still refuses to pay.

Now it has come to this. I am going to try and msg her again after I drop off the kids. As the lender is asking for her work address to pick up the car.
 

Atticus

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6 February 2019
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Ex and I currently going through lawyers.
We currently have money held in trust from sale of family homeI

So I assume you mean a property settlement..

As the ex has and is continuing to enjoy sole use of the car, I would be instructing my solicitor that all loan, rego and insurance payments be treated as a post separation contribution... there is legal merit in this as the family court can take into account any financial contributions towards the preservation and maintenance of a joint asset, even post separation..
 

Louise too

Well-Known Member
28 November 2018
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Yes sorry I mean property settlement.

Ok. Why post separation contribution as not been offered to me as an option by my lawyer?

I have been paying for insurance, rego, etc., for the last 18 months.

In addition, while ex was still living in the family home, I was giving her $350 per week to go towards bills such as water, electricity, land rates, etc. However, when the house sold, there was a $2000 land rate debt that was paid out of the sake of the house. No questions ask.

Why can’t the same happen for the car?

Don’t understand why the ex is happy for the car to go and me to have a bad credit rating!
 

Rod

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I don’t want to see the kids go without car

^^ This is your problem. Ex knows it and is using it as leverage. It is a form of extortion.

Stop paying now. Your kids will likely get over it. Your ex can then pay for a another car out of her share of the property settlement. Maybe agree to an interim payment of $10K each and she can buy a car out of her $10K.

... as the family court can take into account ...

I would not count on this. Either treat the money as a gift or stop paying.
 
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sammy01

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27 September 2015
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Yup - let them take the car...

Mate bad credit ratings are not a death nail on being able to borrow money ever again.

She has taken you for a ride, now let them take her ride and she can catch the bus...
 
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Atticus

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6 February 2019
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Yes sorry I mean property settlement.

Ok. Why post separation contribution as not been offered to me as an option by my lawyer ???
I have been paying for insurance rego etc for the last 18 months.

The relevant section of the family act is Section 79... Alteration of property interests.. In particular, part (4) quoted below....

(4) In considering what order (if any) should be made under this section in property settlement proceedings, the court shall take into account:
(a) the financial contribution made directly or indirectly by or on behalf of a party to the marriage or a child of the marriage to the acquisition, conservation or improvement of any of the property of the parties to the marriage or either of them, or otherwise in relation to any of that last-mentioned property, whether or not that last-mentioned property has, since the making of the contribution, ceased to be the property of the parties to the marriage or either of them...

Why it wasn't mentioned. Don't know, ask..

I agree with other posters that you should just let the car go if your generosity is continuing to being abused. But, the money that you have already paid could be claimed as a post-separation contribution. Would really all depend on what amount you are talking about though. No point creating more work for your solicitor (and a hit to your hip pocket) for anything less than thousands..

The vast majority of settlements are settled by consent. In that process, these kinds of contributions can be set aside as insignificant in that process. If a settlement were to go before a judge for a decision though, and a claim for PSC was rejected, that judge would have to give reasons why it was rejected. Plenty of legal precedents for PSC to be taken into account. But, again, it has to be an amount worth pursuing.

Cutting your losses now and letting the car go is probably just easier, smarter
 

sammy01

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27 September 2015
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While you there stop all the other payments. The kids won't go without a car. The ex will have to go and buy a car like all us grown up's do and stop relying on handouts from a twit... Sorry mate, I know it sounds mean, but it is stupid to keep handing $$$ hand over fist to the ex and getting nothing back but grief.

Mate, I was always a fan of the honey pot... The honey pot theory goes like this... Pay a little bit extra A little bit...To keep things sweet between me and the ex. I continued paying a few extra's - kept her on the health insurace for example... But when you're paying for honey and getting lemons....

My bet - the car will get re-possessed. She will contact you in a rage. Hang up.

She will agree to have the car loan paid off out of the money in trust and for that $$$ to come out of her share of the asset division. But this is gonna get complicated. I don't know if you can agree to one part of asset division, without it all being done. But ultimately, that is her problem... Remember that. Her problem... She can go get a car loan and get a car.... That is what grown up's do... They don't rely upon an ex...

Let me put it another way - based on my experience. My ex wanted to divorce me while staying in an intimate and loving relationship with my wallet... Does that resonate with you?
 

Louise too

Well-Known Member
28 November 2018
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389
Thank you for your messages and the time you took to explain I now feel better about the process and not so anxious. Thank you again.