Dividing property during a divorce can be complicated, especially when it comes to jointly owned vehicles. Cars, trucks, motorcycles, or recreational vehicles purchased during the marriage often become part of the marital estate, and decisions about who keeps them are influenced by North Carolina’s equitable distribution laws.
Understanding your options and rights is critical to avoid disputes, financial strain, or legal complications. Contact a Martine Law Attorney and learn what steps you can take to protect your interests.
How North Carolina Handles Vehicle Division
Marital vs. Separate Property
- Marital property includes vehicles purchased during the marriage, regardless of whose name is on the title.
- Separate property includes vehicles acquired before marriage, through inheritance, or as gifts specifically to one spouse.
The court considers equitable distribution, meaning property is divided fairly—not necessarily equally. Factors include:
- Each spouse’s contribution to the purchase or maintenance of the vehicle
- Length of the marriage
- Financial needs and earning capacity of each spouse
- Existing debts related to the vehicle (loans, liens, or leases)
How the Court Decides Who Keeps the Vehicle
- Agreement between spouses: The easiest solution is a mutual agreement on who keeps each vehicle.
- Buyout: One spouse may keep the car by paying the other spouse their share of its value.
- Sale: The court can order the vehicle sold, with proceeds divided equitably.
What Should You Do If…
You Want to Keep a Vehicle
- Determine the current market value using online tools or an appraisal.
- Consider financial implications, including remaining loan balance, insurance, and maintenance costs.
- Negotiate a buyout with your spouse or request court intervention if no agreement is reached.
There’s a Vehicle Loan
- Check who is legally responsible for the loan—both spouses may be liable even after the divorce.
- The court may assign responsibility, but lenders are not bound by the divorce decree; refinancing may be necessary.
Disputes Over Vehicle Ownership
- Keep detailed documentation: purchase receipts, loan agreements, insurance payments, and maintenance records.
- Hire a North Carolina family law attorney to present evidence and advocate for a fair resolution.
Common Outcomes
- One spouse keeps the vehicle and refinances the loan in their name.
- The vehicle is sold, and proceeds are divided equitably.
- Both spouses share the vehicle temporarily, such as until children are grown, if necessary for practical reasons.
- Outstanding loans remain a factor; the spouse keeping the vehicle may need to assume full responsibility or negotiate a settlement.
Key Takeaways
- Vehicles acquired during the marriage are generally considered marital property in North Carolina.
- Equitable distribution allows the court to divide vehicles fairly, considering financial and practical factors.
- Reaching an agreement with your spouse is often faster, less costly, and reduces stress.
- Legal guidance is essential, particularly when loans, liens, or disagreements complicate the division.
Suggested Internal Links
If you are going through a divorce in North Carolina and need help dividing vehicles or other marital property, contact Martine Law for a strategic consultation. or schedule a confidential appointment online.
FAQs
Are vehicles purchased before marriage considered separate property?
Yes, unless marital funds were used to pay off the loan or maintain the vehicle.
Can the court force one spouse to keep a car loan?
The court can assign responsibility, but the lender may still hold both spouses liable until refinancing occurs.
What if the vehicle has negative equity?
The court may consider the debt when dividing assets and may order a buyout or sale.
Can we agree to share a vehicle after divorce?
Yes, but shared ownership is usually temporary and may require a formal agreement to avoid disputes.
How is the value of a jointly owned vehicle determined?
Market value, condition, mileage, and remaining loan balance are considered; appraisals can be used for accuracy.