Hi there. The financial order made by the Family Court is legally binding between you and your ex-wife. It sets out certain things that you are both required to do as part of your property settlement after separating or divorcing. This means your ex-wife may be required to take steps to remove your name from the loan documents. If she has failed to do this or something else in the order, you can seek an enforcement order from the Family Court to ensure she complies with the original financial order.

In the meantime, and until your name is removed from the loan documents, it is likely that you remain jointly liable for the debt. The financial order only applies as between you and your ex-wife, so third party creditors are not legally required to adhere to its terms. This is based on the assumption that the original financial order made by the Family Court did not mention or include a third party, such as the creditor of the car loan.

You have the option of applying to the Family Court for a modification of the original financial order so that it extends to third parties, such as the car loan creditor. The court must be satisfied that such an order is reasonably necessary and that the creditor has been notified of the intended arrangement and been given an opportunity to be involved in the proceedings. If such an order is made by the court, then the third party named in the financial order would be bound to follow it.

Suggested way forward

The most practical solution at this stage would be to negotiate with the creditor and explain that it was agreed with your ex-wife that you would not be liable for the loan. If this is not possible, you may want to consider speaking to a family lawyer who can advise you of your legal rights and responsibilities. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.