Ex partner and loan liability

kirstym01

Hi all,

I've got a query and was just wandering if anyone would know where I stood.....

Last year my ex and I separated, 18months before we separated we took out a joint loan for £9k to buy a car, as it was a bit of a messy separation he took the car from me one day and sold it for £4900 (I think he could have got more for it but he just wanted to sell it!), out of the proceeds of the sale he bought another car for himself for £2k and put the rest of the money into his bank account (£2900), even though I asked him to put the whole £4900 back towards the loan :mad: We came up with a bit of a verbal agreement that he would pay the loan repayment out of the remaining £2900 until our house (joint mortgaged) was sold and I would continue to pay the mortgage, once the house was sold I told him I would split the remaining amount of the loan (just over £4k) 50/50. Nearly a year on the house still hasn't sold so I am still paying the mortgage on my own and he is still repaying the loan, but I was going through my solicitors letters the other day and came across one from his solicitor which clearly states:

'Our client to retain the car and discharge the outstanding loan in respect of the same'

I read this as he is liable for the loan but I'm not sure what the 'in respect of the same' bit means, would anyone know?
I don't want to start falling out with him about this issue again but we've just received an offer on the house so I know this needs sorting imminently now, I also think he hasn't been spending the £2900 he had to pay the loan payments, he seems to be buying the children lots of unnecessary toys and clothes at the moment and I know how useless he is with money and how he has never got any surplus cash, I'm really confused about what I should do, has anyone got any suggestions or will I be totally liable for my share of the whole loan?

[Deleted User]

As it is a joint loan, you are "jointly and severally liable".

That means that, should the loan not be paid, the creditor can pursue either/both of you.

As to the "discharge the outstanding loan in respect of the same", INAL but, I don't believe it means he has to settle it, using the proceeds of the car sale.

He just has to pay it off, one way or another.

matttye

It means he will keep the car and pay off the loan in respect of the car ('same').

TBagpuss

mattye is corect abou the wording.

As you are selling the house, make sure that your conveyancing solicitors know not to pay any of the proceeds of sale to your ex without your written agreement. The money can be held by the solicitors and you can then finalise the agreement with him.

Was the agreement that the proceeds of sale would be split? If so, suggest that the car loan is paid off out of his half before the balance is given to him. As better you and the loan company, you and he are both liable and that loan co. can chase either or both of you.

As between the two of you, you can come to an agreement to get the loan cleared and for him to pay that out of his share of the money from the house.

As the loan is in joint names you should be able to contact them and get a redemption figure and the solicitors dealing with the sale should then be able to send the money to the loan co (there may be a small extra charge for doing this)

Ideally, get something in writing from you ex which confirms that on sale, the money is to be used
1. to pay off the mortgage
2. to pay the estate agents and legal fees
3. to pay you 50%
4. to pay off the loan
5. to pay him the balance

and check the figures for yourself to make sure that the loan is paid off out of his half, not before the proceeds are split (which would mean you effectively pay half each)

make sure that the payment to the loan company is either made directly by the solicitors, or that the money is provided to you and you pay them off, so you know it has been paid and not spent elsewhere.