I will be using fake names to make this post for privacy reasons of the involved parties. Location: Ohio
In January of this year husband (Tim) got a divorce from wife (Jessica) in the state they live in, Ohio. They did the paperwork together with no outside attorney, or console. They were civil through it all. In the portion talking about vehicles they agreed that Tim was to take the debt of what was left on the boat loan. Where Jessica was to get the title transferred to her upon the debt being paid.
In May of this year Jessica was hauling the boat to her families lake house. Jessica ended up in a vehicle accident and the boat ended up off the trailer and completely upside down on the highway. The insurance company that Tim was still paying for coverage on said boat, deemed that the boat and trailer were to be completely totaled out. The insurance company then pays the debt of the boat loan directly to Tim’s bank that the loan was financed through. A smaller over payment check was sent out to Tim as well.
A few weeks later, Jessica had reached out to Tim asking about money for the boat. Jessica claims that Tim owes her the 23k$ that the insurance company had paid out for the pay off amount on the loan.
This is word for word out of their divorce agreement paperwork. “Except as listed here for jointly titled vehicles and for vehicles to be transferred, each party shall retain title to and possession of all motor vehicles and other forms of titled or registered conveyance now in that party’s individual name. The following agreement is made regarding the motor vehicles (identify any vehicle that needs to be transferred to the other party and who is responsible for any debt on the vehicle. Tim is responsible for any debt on boat. Title is to be transferred to Jessica along with trailer.”
Jessica knew that the title would not be transferred over from Tim’s bank until the debt was paid off. Tim’s bank had released the title for boat and trailer to the scrap yard upon the debt of the loan being paid off due to the boat being considered a total loss by the insurance company. Tim would have still been making payments to cover the debt if the boat was still fully functional.
Should Tim have to pay Jessica the amount that was paid off by insurance? Or since the debt was paid by Tim’s insurance since Jessica totaled the boat, that if Jessica wants the title per agreement she should contact the scrap yard and Tim has nothing to worry about, now that debt is paid?