Short story - my friend and I have joint bank account and bought a car which is in both our names. Friend went away for year I have car. We had a falling out. Friend now whats car. Friend also threatens to sue over money spent from joint account and car payments (made from joint account) while vehicle was in my possession. I have the car and refuse to give it back unless friend will refinance.

What can happen?

[Moose]

Sounds like a case for Judge Judy to me. With no written contract, you and your friend will have to settle in court.

[Lil Honey]

Who spent the money in the account while your friend was gone?

Did your friend deposit money into the account while he/she was gone? Was the friend aware that possibly his/her money from the joint account was being used to make payments on a car that he/she wasn't using?

I don't know if there is anything either of you can do with the joint account. A joint account means that both people can access the money and by making it a joint account, one is giving permission in advance that the other person can access the money.

As far as the car goes, if YOU had the car and it was YOUR money making the payments, I'd be tempted to sell it and split the proceeds using the percentage of the total cost that you paid and the percentage of the total cost that the friend paid.

Friends and money NEVER mix . . .