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Thread: Simple Equity Division: Divorcing couple needs to equalize equity, debt of vehicles

  1. #11
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    Quote Originally Posted by Jeoleson View Post
    Okay! Got it!

    So the wife gives the husband $7,000.

    $10,000 (car value) - $7,000 (to the husband) = net gain of $3,000 for the wife.

    $10,000 (car value) - $14,000 (car debt) + $7,000 (from the wife) = $3,000 net gain for the husband.
    Sorry to intervene here, but who is liable on the car loan?

    The loan may have been incurred to buy the husband's car and may be secured by that car, but if the wife signed for that loan, she remains liable to the creditor despite her payment to the husband. If I were the wife and those were the circumstances, I would not find this proposal even close to acceptable. Indeed, I might not find the proposal acceptable even if I were not liable on the note because I would be giving up 7000 immediately whereas the other party is giving up 7000 over a possibly extended period of time. The wife is replacing the banker and may not have the economic capacity to do so.

    If the wife is liable on the note and has 7000 in cash lying around, then she should pay the 7000 to the creditor in exchange for a release, not to the husband. In any other circumstances, a solution is not just a matter of basic arithmetic. There are three parties involved, and there is a time value of money. If the wife is legally liable or believes herself morally liable (fat chance), probably the equitable and practical thing to do is to exchange the current note for 14000 with 2 notes for 7000, one due from the wife and secured by a car to which she has title and the other due from the husband and secured by the car to which he has title.

  2. #12
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    Quote Originally Posted by Jeoleson View Post
    The wife will take ownership of a black car, and the husband will take ownership of a blue car.
    Both vehicles are valued at $10,000.
    The black car is paid off and has no debt.
    The blue car has a loan of $14,000
    Clearly stated:
    wife has $10,000 car, no loan
    hubby has $10,000 car, $14,000 owing

    hubby never made a payment due to
    drinking/gambling...

    So NOTHING to be done: just leave him, ma'm
    I'm just an imagination of your figment !

  3. #13
    Elite Member mmm4444bot's Avatar
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    Quote Originally Posted by Denis View Post
    Clearly stated:
    wife has $10,000 car, no loan
    hubby has $10,000 car, $14,000 owing
    Actually, it says clearly that the wife will get and the husband will get.

    Hasn't happened, yet. The agreement is in progress.

    There's also no wording that the husband has or will get the debt. Sure you didn't use to be an attorney?

    Anyways, I have assumed that the given information is all that's needed to "equalize the equity and debt of the vehicles".

    If we don't have all of the needed information, then it's possible they each end up in debt, after taking out multiple personal loans for legal expenses to continue extended warfare.
    "English is the most ambiguous language in the world." ~ Yours Truly, 1969

  4. #14
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    Quote Originally Posted by mmm4444bot View Post
    If we don't have all of the needed information, then it's possible they each end up in debt, after taking out multiple personal loans for legal expenses to continue extended warfare.
    Very likely outcome.

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