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 Connecticut, as in many states, cars are considered part of the marital estate and are subject to division during a divorce. Connecticut follows the principles of equitable distribution, which means that marital property, including cars, will be divided in a way that is fair, but not necessarily equal. If a car was purchased or leased with marital funds during the marriage, it is likely to be considered marital property. If spouses cannot agree on how to divide their assets, including who should retain ownership of cars and who should be responsible for any associated loans and insurance, the court will make a determination. The court will consider various factors, such as each spouse's contribution to the acquisition of the property, the length of the marriage, the economic circumstances of each spouse, and any other factor it deems relevant to reach a fair distribution. The final decision may involve one party retaining the car and compensating the other party, selling the car and dividing the proceeds, or one party taking over the car loan and insurance responsibilities.