Who Gets the Car in a Divorce?

Divorce Settlement

At first glance, splitting the car might seem like an easy job. You can either sell it and share the money or present your case for why you should be the owner. However, there are a lot of things you need to consider when coming to an agreement, such as the car’s value, debt, and creditors. 

How Much Is the Car Worth?

At the end of the day, no matter how you want to settle the divorce, you’ll need to find out the car’s value. Luckily, there are many online validation tools that can help you with this. From Kelley Blue Book to Edmunds and others, you can use various tools to accurately determine the value of your vehicle. But keep in mind that the car’s resale value will most likely differ from its loan or trade-in value.

What About Debt?

If the car hasn’t been completely paid off yet, things become a bit more complicated. For starters, debt needs to be taken into consideration when calculating the division of assets and liabilities. Even so, depending on its condition, a car can end up being worth less than the amount owed. In other words, you may actually lose money trying to claim ownership of the vehicle.

Who Pays the Car Loan?

Let’s say that one spouse is the only party listed on the car loan, but the other spouse wants the car. If that happens, you and your partner can solve the problem in a variety of ways. For example, you can pay off the debt and track the money in the overall property distribution. That way, you are free to sell the car and share the cash without fearing any leftover debt. You can also refinance the car in the name of the party that wants to keep it. And if they don’t qualify for a car loan, they can request the help of a sibling or parent.

However, it’s important to understand that you can’t simply remove your name from a loan. In fact, creditors will only release a party from financial liability once the debt has been satisfied. So you will have to come to an agreement with your spouse if you want to give up the car. 

What About Insurance and Repairs? 

Last but not least, both parties need to deal with car-related expenses such as repairs, upkeep, and insurance. You can either split the costs with your spouse or let the party who wants to keep the car handle everything. But usually, each spouse will need to obtain their own separate car insurance. And if the vehicle is in bad shape as a result of an accident, the party responsible should cover the repairs.

The Conclusion

Overall, it’s hard to decide who gets the car in a divorce, especially since no separation is identical. From the car’s value to the loan and debt, many factors determine who will end up with the car. And if you want to increase your chances, you can always rely on a divorce lawyer.