NSW Ownership of a vehicle after separation

[Farm hand]

Three years ago December 2021 I used $7,000.00 of my money and borrowed $20,000.00 from my parents to purchase a family car for my defacto partner to drive as we had had a son. It is registered and insured in my name. The agreement was my partner would pay my parents $160.00 a fortnight until December 2026 which she has done for the majority of the time. She has since moved back home to her mothers and taken our boys with her and the car. We still owe my parents over $9000.00. Can I legally take the car back and sell it to repay my parents what we owe them and share 50/50 the balance? Unfortunately she doesnt look after it very well and I think we may only get around the $15,000 - $18,000 for it. Of course she thinks I should just change the registration over to her and she would continue to pay the payments but I dont think that is fair on me and my parents would like to be paid out also.

 

[lostinspace]

If you have the keys, you have the purchase receipt and proof of payment etc you could do something. But how will your kids get around ?

I would not change anything. Work on what is fair and practical. Your parents can only chase whoever they actually loant the money too, which sounds like you.

 

[Noel Harris]

Registration in your name doesn't automatically settle the question, and nor does the fact your former partner has been making payments. Once a de facto relationship has ended, any dispute over an asset like this is generally resolved as part of an overall property settlement rather than item by item, taking into account each party's financial and non-financial contributions (including the money you and your parents put in, and the payments she's made) and future needs, including that she now has care of your children.

Practically, you can't just repossess and sell the car unilaterally if she is using it, particularly while it's needed for the children, without risking a dispute over your right to do so. It would be far better to resolve the car, and ideally the debt owed to your parents, as part of a broader informal agreement or formal financial agreement covering all your joint assets and debts. Keep in mind there are time limits (generally two years from separation) for de facto partners to apply to the court for a property settlement if agreement can't be reached. Getting advice on de facto relationships will help you understand how to resolve asset disputes like this one and the time limits that apply to your situation.

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Disclaimer: Please note information in this response is general in nature and should not be treated as legal advice. It may not be complete or up to date for your specific situation. Independent legal advice is always recommended.