When a couple divorces, one of the key issues they must resolve is how to divide their assets, including their family vehicle or vehicles. In Delaware, which follows equitable distribution laws, marital property is divided fairly, but not necessarily equally, by the courts if a couple cannot agree as to how their shared assets should be divided. Therefore, whether each spouse gets to keep their car after divorce depends on various factors such as mutually-agreeable approaches to property division, ownership, financial contributions and the overall division of marital assets.
Before deciding who keeps a vehicle, it must first be classified as marital or separate property. A car is generally considered separate property if one spouse:
- Owned it before the marriage
- Received it as a gift or inheritance during the marriage
- Purchased it using separate funds that were not shared with the other spouse
In these cases, the original owner is likely to keep the car at issue after their divorce, regardless of who used it more during the marriage. However, if the car was purchased during the marriage with marital funds, it is likely to be considered marital property, regardless of whose name is on its title.
Additional considerations
If a car is classified as marital property, several factors may come into play when deciding who keeps it. If spouses and their legal teams can’t reach an agreement without judicial intervention, courts may consider:
- Who primarily uses the vehicle: If one spouse relies on the car for work, transporting children or daily activities, they may have a stronger claim to keep it.
- The financial situation of each spouse: If one spouse is in a better financial position, they may be required to buy out the other spouse’s share of the car’s value
- Outstanding loans on the vehicle: If there is a car loan, the court may assign the debt to the spouse who keeps the car. If both names are on the loan, refinancing or selling the vehicle may be necessary
- Other assets in the divorce settlement: If one spouse keeps the car, the other may receive an asset of similar value to maintain fairness in the property division
If both spouses want to keep a car, they may negotiate an agreement outside of court through mediation. Some common solutions include:
- One spouse buying out the other’s interest in the vehicle
- Selling the car and dividing the proceeds
- Trading another asset in exchange for the vehicle
If an agreement cannot be reached, the court will decide based on equitable distribution principles.
In a nutshell, it isn’t always straightforward as to whether each spouse gets to keep their car post-divorce. As a result, seeking personalized legal guidance to evaluate one’s unique circumstances can be helpful.
