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 Hawaii, as in many states, cars are considered marital property if they were purchased or leased during the marriage with marital funds. During a divorce, if the couple cannot agree on how to divide their assets, including cars, the court will make the decision for them. Hawaii follows the principle of 'equitable distribution,' which means the court will divide marital property in a way that is fair, though not necessarily equal. The court will consider various factors, such as each party's economic circumstances, contributions to the marriage, and the duration of the marriage, when deciding who gets the car(s). The court will also determine who is responsible for any outstanding loans and insurance payments. If the car is determined to be separate property, owned by one spouse prior to the marriage or received as a gift or inheritance, it may not be subject to division. It's important for individuals going through a divorce to consult with an attorney to understand their rights and obligations regarding the division of assets such as cars.