Law Office of Joseph A. Katz | Joseph A. Katz
Too bad you co-signed. I think it is not clear if you have to pay, or not. The registration of the car was a factor, but since you are on the loan and the issue is financial, and occurred during the marriage, unless you obtain a stipulation to assign the debt to her (which she will obviously not agree with), or obtain a Court Order that the debt be assigned to her (which you could hold out for), you will probably each be jointly and severally liable for the entire debt. Then again, the accident was her fault and she held registration alone, indicating ownership. You could make an argument, but would have to litigate the issue. Maybe she can file for bankruptcy and discharge the deficiency?
Answer Applies to: California