De Facto Liability for Car Loan Debt?

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25 June 2014
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Hello, a friend of mine has recently gotten out of a messy relationship after discovering his partner was unfaithful. They were together for just over a year. They got car loan finance together for a new car, and the car and car insurance was registered in her name. He doesn't particularly want the car however, he cannot remove himself from the finance and just sign it over as she can't afford it, and credit rating is not the best. She now has a new boyfriend who she claims is taking over his portion of the finance, and has sent the car away with this new boyfriend so my friend has no access, and claiming that he has no legal entitlement as it's registered in her name.

He has explained all this to the finance company and they have pretty much said, "too bad you are still financially liable". My friend was head over heels for this girl and in hindsight it was a poor decision getting a car together so soon. Like I said he prefers not to have the car as certain activities took place in it and doesn't want the reminder, however said that he also does not want to be financially liable for it if he can't see or even use it.

Any legal advice would be appreciated, does he really have no claim at all over that car? Theoretically the insurance is in her name, so she can total the car, get the insurance payout and leave him paying then remainder of the finance.
 

Worldly1

Well-Known Member
25 April 2014
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Australia
Hi Deidre,
I haven't been in this kind of situation before, but are they on good enough terms that he can arrange for his liability for finance to be transferred to her new boyfriend? I imagine its just some paperwork and their signatures to transfer into the new boyfriend's name. Even though its registered in the girlfriend's name, would he still be able to show that he's been contributing to payments for the car?