Cars are an important asset, and are often the subject of dispute in a divorce—whether the couple owns or leases one car or multiple cars. Because cars are property and often purchased or leased with marital assets (funds), they are subject to the court’s decisions on how to divide the property. If the parties to a divorce are not able to agree on the transfer of ownership (title) and responsibility for payment of any car loans and insurance, the judge or jury may make these decisions for the parties.
In Alabama, as in many states, cars are considered personal property and can become a point of contention during divorce proceedings. When a couple divorces in Alabama, the state's laws regarding the division of marital property apply. Alabama follows the doctrine of equitable distribution, which means that the court will divide marital property in a way that is fair, but not necessarily equal. Marital property includes assets acquired during the marriage, which can encompass vehicles purchased or leased with marital funds. If the divorcing parties cannot reach an agreement on their own regarding the division of their cars, including the transfer of titles and the responsibility for any associated loans and insurance, the court will intervene. A judge or jury will assess various factors, such as the length of the marriage, the contribution of each spouse to the acquisition of the property, and the economic circumstances of each spouse, to make a decision on how to divide the property, including cars, in a manner that is equitable to both parties.