With changes in the tax laws cutting out deductions for consumer credit while leaving in deductions for home equity loans, many people have opted to use these loans as financing for purchases such as automobiles. It is important to be aware of the potential consequences of this decision during a separation or divorce.
Differences arise, and one partner moves out, taking the car.
This person has the benefit of being able to avoid car payments, while the other must pay for the loan or lose the house. Many states have procedures to obtain special relief form the courts, either in the form of additional support so you can make the payments, or in the form of an order to force the other party to make payment directly to the lender. This may be more complicated if the home equity loan had several purposes. Don't automatically assume you're not entitled to help from the court. See an attorney versed in domestic relations matters as soon as possible.