My husband bought a car. Only his name is on the title because my credit is not good, but his is very good. But I am going to pay the car loan and the insurance.
I would like to know if it's possible for him to add me to the car title and registration?
If he can add me, would it mean that I would own half of the car, or would he still be the full owner?
Even though I hope it never happens, I'm afraid that if someday we divorce or he died I will lose the car I'm paying for.
A loan company will only grant your husband a loan on a car he wholly owns. This is because the loan company needs to be able to repossess the car if your husband defaults. They can't do that if someone else owns the car.
You could probably have had joint ownership if you had taken out a joint loan rather than having him take it out. The practicality of that would depend on how bad your credit was. In any case it's too late now without refinancing the car.
In the case of divorce, all assets including the car will be split by the courts, or by what you agree to. Your payments towards the car will be taken into account. If you are really concerned about what happens to the car in case of your husband's death, get him to leave it to you in his will. In many countries a person inherits their spouse's assets by default anyway.
If you live in one of the following nine states; Montana, Wyoming, Oklahoma, Minnesota, Missouri, Michigan, Kentucky, New York, or Maryland, you’ll receive the title to the car even if it isn’t paid off. You can also add another name to the title without the lending institution’s permission.
In any other state, the lending institution actually owns the car, so no, your name cannot be added to the title until the loan is paid off.
Once you are eligible to be added to the title, if you have the title read "Joe Smith or Jane Smith," this means either of you holds the title in full and can sell it without the other person's permission. It will not be subject to a will. If the title reads "Joe Smith AND Jane Smith", both of you must sign in order to sell the car. Neither of you owns it alone in full. If one of you dies, the car could be subject to what is written in a will.
According to Atlanta attorney Anthony Zezima, Georgia is an "equitable distribution state" in regards to divorce law. In general, this means that property is treated differently depending on whether it was acquired during or prior to the marriage. Property acquired during the course of the marriage is divided between the spouses, regardless of whose name is on the title. Property acquired prior to the marriage is considered separate and not subject to division.
Note: I've paraphrased the source linked above rather than quoting it, since it is copyrighted in a way that does not permit me to quote it here. I'd advise going to that site and reading it, as I'm not a lawyer.
The case of death is different and also varies somewhat by state. It is usually advisable to have a will specifying how your property will be distributed after death regardless of what state you're in. If you want to ensure that you'd inherit the car, it would probably be advisable for your husband to have a will stating this. In some states, spouses can claim some portion of the deceased's estate regardless of what the will says, but this varies by state.
You should have had the car in both your names so that you can establish credit. Your poor credit or lack of credit does not make it any more of a a risk to the bank if both of you are on the title. You are married and even if there were a divorce prior to the final payments, it would most likely be community property or involved in property settlements. However, having both of you on the title and showing you as making the payments would most assuredly improve your credit. In the future, tell him you want things in your name so you can establish and improve your credit. Raising your individual credit rating will raise your overall rating as a couple. There is a chance he may let you refinance it to do just that.
