Divorce can cause financial upheaval, especially if you relied on your ex’s income. Asset division is crucial; if you’re left with a truck worth $7,000 less than the loan balance, you face tough decisions like refinancing at a higher rate.

Options for handling an upside-down loan include negotiating with lenders, selling or trading in the vehicle, or focusing on a repayment plan to erase negative equity. Seeking advice from a financial advisor can help you navigate the best path forward based on your post-divorce financial situation.

Handing over your truck to the lender in an attempt to avoid repossession may not benefit you. The lender will likely auction it off for less than you could get privately, leaving you responsible for the remaining balance and facing potential credit damage.

If you can afford it, focusing on a repayment plan may be the simplest solution. Putting extra money toward the loan can help erase negative equity and eventually trade the truck for something more affordable. Consulting a financial advisor is key to making the best decision for your circumstances post-divorce.

Read more at Yahoo Finance: After my divorce I ended up with a truck $7K underwater. Here are the best ways to manage your debt