ADVICE COLUNM: Dating and Finances

The monthly advice column where I try to help with your stickiest financial queries.

The beauty of supporting me and being a paid subscriber is you can ask questions for a monthly advice column. Yay!

Today we have a tricky money meets relationship problem. Therefore I need warn you I’m not a CPA nor a couples counselor (although I could probably help prevent 95% of breakups by letting the couple use a dating app for 5 minutes).

This month’s question:

Hey Eden,

Last year, my boyfriend had a terrible car. He absolutely had to buy another. But he still owed a lot on his current vehicle. Enough that he had to sell it privately to not be upside down on the loan. He decided that he was going to buy a new car before his old one because the thought of not having a vehicle in LA was nerve racking.

Here is where I come in: he didn’t get approved for any loans at the dealership (we both have creative jobs that can sometimes be unstable). His credit score isn’t great and there was already a car on his credit report. He asked me to co-sign because I have good credit. I was technically the signer and he was the co-signer. I’ve been paying the car payments and making him pay me back (never had a late payment on my credit and I don't plan on it).

And…. now we are breaking up! The title in in both of our names. Car is registered to both of us, but I am the primary. I don't know what to do. I don't know if he’ll be able to refinance. I really don't want this car to hurt my credit. The car is worth way less than what is owed. What can I do?

-Newly Single Co-Signer

Dear Newly Single,

In the words of my grandmother, “Oy Vey!”.

First things first, and this may sound harsh, but you're about to pay a “stupid tax” for co-signing with someone other than your spouse. On the bright side, it wasn't a house (or a kid!).