My Ex Drives a Car Still in My Name, Will I be Held Liable for Default Payments, Accidents, etc?

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“I am getting divorced from my wife (disillusionment). The car that she drives is in my name. She would like me to keep the car in my name and she will make the payments to the bank. She has been doing this for the last year. In the disillusionment agreement, it states that I am not liable if she should get in an accident, default on the payments, etc. Will this hold up in a court of law?”

Question: Many states have provisions for a person injured in an accident to recover from the owner of a vehicle under either a vicarious liability or negligent entrustment theory. If she did get into an accident and someone did get a judgment against you, you may have a suit against your ex to recover that amount based on your agreement. This would not necessarily prevent someone from coming after the owner of the vehicle (you?), but may be a way to ultimately shift responsibility to the ex for bad acts she actually does. The cleaner the split, the better I say. Can she somehow get the financing in her own name and get you out of the loop?