Who Gets The Car in a Divorce
June 2023
Who gets the car in a financial settlement following divorce can be a very contentious issue between husband and wife. Whilst to some a car is just a car, to others who gets the car is a significant concern.
In this article, our family law solicitors look at the factors affecting who gets the car when resolving financial matters following divorce and offer guidance on how to negotiate your divorce financial settlement.
Initial Discussion
This summary provides general information and does not constitute legal advice on any individual circumstances.
For an initial discussion and a no-obligation quote, get in touch with us today by simply calling us on 01234 343134 or email us at enquiries@fullersfamilylaw.com and a member of our team will get back to you.
Can I get to Keep the Car as Part of my Divorce Financial Settlement?
Whether you will get to keep the car as part of your divorce financial settlement depends on a whole range of factors. Whilst the car may not be as valuable as the equity in the family home or shares in a family business or a pension fund, a car may have a significant financial or personal value to you.
Cars are increasingly becoming hot issues in financial settlement negotiations with the cost of cars going up in price and people wanting to hang on to a safe and reliable car rather than have to give the car keys and log book to their ex-spouse or to sell the car.
Who Owns the Car?
The first point when looking at cars and divorce settlements is to check who is the legal owner of the car. Remember that the registered keeper and legal owner are not always the same person. Often couples assume ownership is joint or that the car is theirs as they paid the car loan but that may be incorrect. The point is worth checking as if you agree to a divorce financial settlement assuming that the car is yours, your ex-spouse may not agree to sign the car over to you if the financial court order does not say they are obliged to do so.
Remember that the ownership and the value of the car can be separate from any loans taken out to buy the car. For example, the car may have been bought in your name but your former husband or wife may have taken out a bank loan in their name as they could get a cheaper finance deal. If you get to keep the car, the loan is not linked to the car and will need to be sorted out as part of the overall divorce financial settlement.
Private Registration Plates
A private registration plate can be more valuable than a car and can be sold separately. If your ex-spouse wants to keep the car, then the value of the plate will also need to become part of the negotiations.
Valuing a Car in Financial Settlement Negotiations
If a car is owned (rather than leased) it needs to be valued and the value of it and any private registration plate needs to be disclosed as part of the financial disclosure process in any solicitor negotiations, family mediation, or divorce financial settlement proceedings.
You also need to check if there is a car loan and the amount outstanding. Part of your financial settlement negotiations may involve getting a large enough lump sum order so you can afford to rehouse yourself and pay off the car loan. Alternatively, you may need to factor in the monthly car loan when looking at your outgoings and whether you need spousal maintenance or can afford to pay spousal maintenance.
Cars and Court Orders Resolving Financial Matters
The family court has the power to order that a car is kept by you, transferred to your former spouse, or sold. The court is often reluctant to get involved in disputes over who should keep the car and may order that the car is sold and the proceeds either divided or kept by one of you.
A car will usually be considered to be a joint asset if purchased during the marriage and the court decision on what should happen to the car on divorce will be based on a whole range of factors. For example, is there a large loan on the car? If so, will you need extra spousal maintenance to pay the car loan each month and is it reasonable that your ex-spouse should pay extra in spousal maintenance if you could buy a cheaper car, loan free? Will keeping the car and paying a car loan affect your ability to pay maintenance? If you don’t get to keep the car, how will you be able to afford to purchase another one?
Whether you get to keep the car in financial settlement proceedings will all come down to how valuable the car is, what it costs to run each month (tax, insurance, repairs, petrol), and whether keeping the car is reasonable. For example, if you are divorcing a wealthy spouse, it may not be unreasonable for you to keep a sports car, or if you live in a rural area with a difficult school and work commute it may not be unreasonable to say you need to keep the most reliable vehicle.
Negotiating to Keep the Car
If the car is very important to you the best way to keep it is to negotiate a divorce financial settlement. You can do this through solicitor negotiations or family mediation and then ask your family law solicitor to convert your financial agreement into a binding consent order. Remember that even if things appear agreed it is vital to have a consent order so you receive the car documents from your ex-spouse and can sell the car if you need to do so at a later date.
How Can Fullers Help?
We understand that finding a solicitor that you feel understands your own specific situation can be a daunting task. So, you can book a free call back with us here.
We have also created a series of fixed-price consultation meetings with a full ‘no questions asked’ money-back guarantee promise.
For an initial discussion and a no-obligation quote, get in touch with us today by simply calling us on 01234 343134, filling in the form below or emailing us at enquiries@fullersfamilylaw.com and a member of our team will get back to you.
