Who Gets the Car in a No-Fault Divorce Case?

The family vehicle can be a contentious issue in a North Carolina divorce. Whether it is an old “beater” or a priceless automobile, you might desperately need your vehicle for work, travel, and your sense of independence. What happens if your ex also wants the family car in a North Carolina divorce? How do you fight for what is rightfully yours? The answer depends on numerous factors – including when and how the vehicle was initially purchased. Reach out to a divorce lawyer in North Carolina to discuss this subject in more detail.

The first step is to determine which spouse initially purchased the vehicle. Next, you need to determine when they made this purchase. These two factors may establish who owns the car after the divorce.

If a spouse purchased the vehicle before they signed their marriage contract, it represents a “separate asset.” In other words, the vehicle is kept “separate” from divisible property during the equitable distribution process. If you purchased your vehicle before your marriage, you can keep it after the divorce. If your spouse purchased the vehicle before the marriage, it remains theirs after the divorce.

If either spouse purchased the vehicle during the marriage, the vehicle is “marital property.” As a result, it may be divided as part of the equitable distribution process. In other words, each spouse should receive approximately 50% of the vehicle’s value.

Equitable distribution is not necessarily a “50/50” split. Instead, family law judges consider a range of factors while attempting to find an “equitable” outcome. In the context of a vehicle, judges may consider which spouse needs the vehicle for work or childcare. If you depend heavily on your vehicle for work, you might get to keep it – even if you purchased it during the marriage. For example, you might use your truck for your landscaping company.

You should also consider whether the car represents a gift or inheritance. Regardless of when the vehicle was acquired, this could make it a separate asset. For example, your parents might have given you a new vehicle after you graduated from college. Even if you were married at the time, this vehicle should remain yours after the divorce. Alternatively, you might have inherited a vintage vehicle when your grandfather passed away. If you received this form of inheritance during your marriage, it is considered your separate asset.

Although you might feel strongly about your vehicle, it is important to approach this issue logically during a divorce. Consider the value of the automobile and whether it is worth spending thousands of dollars in legal fees to fight for ownership. You may be able to purchase a new vehicle relatively easily after your divorce, and this might make more sense.

However, do not assume that a vehicle has a low value simply because it is old. Some vintage vehicles have outperformed the S&P 500. If you are not quite sure about the true value of a vehicle, consider an official appraisal from someone who has experience with automobiles. Your ex could be concealing the true value of the car, and it could be worth hundreds of thousands of dollars.

Mediation and other forms of alternative dispute resolution can help resolve these issues relatively easily. During mediation, spouses have the freedom to decide how they would like to handle vehicles. For example, both spouses might agree to sell the vehicle and split the resulting funds.

Alternatively, one spouse might agree to pay their ex 50% of the vehicle’s value while keeping the car for personal use after the divorce. This could be a viable option if one spouse feels very strongly about the vehicle for sentimental reasons. They might also need the vehicle for work.

Co-ownership is also possible, but this is generally only suitable in situations involving collector’s vehicles. In this situation, the vehicle could be viewed more as an investment than a mode of transport, and both spouses might agree to sell it at some point in the future.

If you’re serious about pursuing the family vehicle in a North Carolina divorce, reach out to Arnold & Smith, PLLC today. We can help you fight for your marital and separate property. The family car is only one example of an asset worth fighting for, and there are many others worth discussing during a consultation. These might include retirement assets, family homes, investments, art collections, and so on. Book your consultation today to get started with an action plan.