You might be happy about finally moving forward with a fresh start. However, one aspect of a divorce remains consistently and utterly stressful: the division of your property. 

If you are worried about how you will commute or run errands after your split, it is best to speak to a divorce lawyer immediately. It is natural that you do not want to lose a vehicle that you rely on for your livelihood. Read this article to find out how the courts decide who gets the keys.

Is The Vehicle Marital Or Separate Property?

Before any division of assets can happen in a court of law, the vehicle in question must be classified. In the United States, property is generally divided into two classes: marital property and separate property.

  • Separate Property: If you owned the car outright before the date of your marriage, or if you received it as a personal gift or specific inheritance during the marriage, it is generally considered separate property. In most cases, this means it is not subject to division and stays with the original owner.
  • Marital Property: If the car was purchased during the marriage, regardless of whose name appears on the title, it is typically considered marital property.

Many people believe that if their name is the only one on the registration, the car is theirs. This is not true. If the car was bought two years into the marriage using joint funds, it is a marital asset in almost every jurisdiction. 

How Does State Law Shape The Outcome For You?

The property division depends heavily on where you currently live. In the United States, there are two primary systems for dividing assets:

1. Community Property States

In states like California, Texas, and Arizona, marital property is treated as being owned equally by both parties. This means a marital vehicle is presumptively split 50/50 in value. Since you cannot physically saw a car in half, one spouse usually keeps the vehicle and buys out the other’s share. Or else, the car is sold, and the money is split down the middle.

2. Equitable Distribution States

The majority of states follow this rule, where property is divided “fairly” but not necessarily “equally.” A judge will look at the total picture of the marriage to decide who should keep the vehicle based on fairness and need.

Do Any Of These Practical Factors Apply To You?

When spouses cannot agree on who gets the car, a judge or mediator will look at several real-world conditions to make an informed ruling. 

  • Primary user: Who actually drives the car most frequently in daily life?
  • Work necessity: Which spouse requires the vehicle specifically to commute to their place of employment?
  • Child custody: The parent who has primary physical custody often has a stronger claim to the family vehicle, as it is used for school runs and extracurricular activities.
  • Loan responsibility: Whose name is on the financing, and who has the financial income to sustain the monthly payments?

What Happens To Vehicles With Outstanding Loans?

Things can get very complex when a car has an active loan. 

If your spouse is assigned the car but stops making payments, the lender can still pursue you for the money if you were a cosigner. The solution is to refinance the loan in the keeping spouse’s name alone before the divorce is finalized. 

According to data from Experian, roughly 44% of vehicles on U.S. roads have outstanding financing, making this one of the most common hurdles in any property settlement.

If your vehicles represent a significant portion of your assets, or if both you and your spouse need reliable transportation to survive, you should not leave this to chance. Seek the help of a qualified attorney to help review your situation and protect your rights!