Divorce and Cars, What is Generally Done to Distribute Vehicles. Vehicles are a relatively straightforward asset to distribute provided the parties know the value of the vehicle. However, where there are leases and loans in different parties names, problems can ensue. Leases for example generally cannot be put into another person's name, however, each dealership is different as is each lease and creative solutions, such as buyouts to leases, should always be investigated. Where there are loans, a car may be sold and the proceeds split between the parties after paying off the loan, or one party could indemnify the other party for paying off a loan that is not in their name. Some parties are uncomfortable with this as the car itself may not be paid off and if the loan is in their name, they will ultimately be sued by the dealership or bank, regardless of whether or not someone has indemnified the other. Online, valuations for cars may be determined through different services e.g. Kelly Blue Book, or a dealership may be approached as well but a trade-in value is often less than what may be received on the open market. The other big issue is insurance, as car insurance generally should be paid for an individual residing in the same household. It is important that whoever receives a car, whether it is going to be registered and titled in their name or not, that car insurance be provided for that car.
Dec 3, 2015 @ 10:06 AM — by Michael Green