It may sound like a minor cause, but a car is significant when a couple wants to divorce. Divorce is an emotional whirlwind, but you can’t ignore the practical concerns related to the division of assets. Among other assets, a car holds immense value which raises the question of who gets the car in a divorce. The blog will briefly tell you.
The Value of a Car In Financial Settlement
In financial settlements, the value of cars is increasing. The price of the vehicles is already out of reach and people want to keep the automobile in their custody. So, to take charge of this valuable asset each party prefers not to give the car keys to their former spouse. Or, they prefer selling the car and dividing the money.
Multiple factors contribute to deciding who gets to keep the asset in the divorce.
Let’s have a look at the reasons:
Who Is The Legal Owner Of The Car?
The primary objective is to check on the matter of who is the legal owner of the car. Don’t confuse the owner and the registered user. There is a high chance that the car’s owner and the individual whose name the car has been registered are different. For example, the husband is the owner of the car but the wife is the registered user of the car.
Couples live in their assumption bubble that the car is their joint property because initially, they paid the loan together. Therefore, they can be wrong and need to be guided accordingly.
They come to realize this when they agree to sign the divorce settlement assuming the car is theirs. However, the other party refuses to give you the car in court proving they own the car.
Don’t assume the car automatically belongs to you because you originally financed it. After divorce, the current value and ownership of the car are evaluated independently. As the financial realities and needs of both spouses are taken into account.
Example: During the marriage, your spouse secured a great loan deal by putting the car loan in your name. If the car ultimately becomes yours in the divorce settlement, that loan becomes separate from the car itself. However, resolving the outstanding loan remains crucial for achieving a fair financial settlement in your divorce. This could involve refinancing the loan solely in your name, selling the car, and using the proceeds to pay off the loan. Or, reaching another agreeable solution with your ex-spouse and the lender.
Is Your Registration Plate Private?
Did you know that private registered plates carry more value? Yes, that’s true! A private registered car plate can well aside an entire car and holds the potential to be sold separately. If your spouse plans to keep the car with them, the plate’s value is required to become part of the negotiations.
What Happens If The Car Is Owned and Not Leased?
If the car is wholly owned and not bought on a lease, you must inquire about its value. The value includes the private number plate if applicable. Why? It needs to be disclosed as a part of the financial procedure to inform the Denver divorce attorney managing your case. The same applies to cases like family mediation and discussion with your lawyer.
While going through the divorce proceedings. Don’t forget to confirm if any loan is left behind or pending dues to be paid. The financial negotiation may include a part where you are entitled to get a handsome amount to get re-settled. Buy yourself a new house or, even better, pay all your loans and take a breath of relief.
How much is your monthly car loan? You will also have to see that to figure out whether you can afford to pay spousal maintenance or will require financial support.
Cars In Court Orders
The good part is that the family court has the authority to order who can keep the car or sell it with immediate effect.
The court often tries to stay out of the cases where car negotiations are involved and the judge may order to sell the car and equally divide the money acquired after selling.
The Road To Divorce Is Bumpy
Hence, make sure you are aware of all the factors when you get a divorce to prevent future issues. Remember, the road to divorce may be bumpy, but with the right approach, you can navigate the car-division challenge.