A car loan the two of you took on during the marriage is a marital debt, and a Georgia judge can make either of you pay it as part of dividing the property.
The Loan Goes With the Division
In Partridge v. Partridge, 297 Ga. 272 (2015), the decree ordered the husband to keep making the payments on the car in their minor child’s possession until it was paid off. He argued that the payments were an improper deviation from child support. The Georgia Supreme Court disagreed and affirmed: the car was bought during the marriage and both spouses owed the loan, so “this marital debt could be properly addressed by the trial court through its equitable division of the parties’ marital property.”
Whether a car is marital property at all is covered in our post on what is marital property in Georgia.
A Company Car Is Different
In Simmons v. Simmons, 288 Ga. 670 (2011), the husband drove a truck owned by a company of which he held about 23 percent. The decree gave him possession of the truck and made him responsible for its debts and expenses. The Supreme Court affirmed, reading the provision to change nothing between him and the company, which was not a party; it “merely provides that Wife has no interest in this vehicle or obligation therefor.”
The same truck counted toward child support. The company’s $1,200 monthly payments on the truck loan, and its payment of his gas, tags, insurance and repairs, counted as fringe benefits in his gross income because they significantly reduced his living expenses. Since the truck was his only vehicle, the whole loan payment counted, though he said only 10 to 15 percent of his use was personal.
Before the Divorce Is Final
Use of the family car can also be awarded as temporary alimony while the case is pending, as our post on the forms temporary alimony can take explains.
Contact Us
This post is a quick overview of the law and is not intended as legal advice. Please feel free to contact our office for a consultation if you have questions about this or any other legal aspects regarding your case!