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 California, which is a community property state, assets acquired during the marriage, including cars, are generally considered community property and are subject to equal division in a divorce. This means that if a couple cannot agree on how to divide their vehicles, the court will decide based on the principle of equal distribution. The court will consider factors such as the value of the cars, any outstanding loans, and insurance obligations. The judge may order the sale of a vehicle and division of the proceeds, award the car to one party while requiring compensation to the other, or assign responsibility for debts associated with the car. It's important to note that any vehicles acquired by either spouse before the marriage or after separation, or as a gift or inheritance during the marriage, are typically considered separate property and not subject to division. However, the increase in value of separate property due to efforts during the marriage may be considered community property. An attorney can provide specific guidance on how these principles apply to an individual's situation in a divorce.