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 Idaho, which is a community property state, assets acquired during the marriage, including cars, are generally considered community property and are subject to division upon divorce. This means that both parties have an equal interest in such assets. If a couple cannot agree on how to divide their cars, whether owned or leased, the court will decide based on what is just and equitable. The court will consider factors such as the duration of the marriage, any prenuptial agreements, the economic standing of each spouse, and contributions to the marital estate. The judge may order the sale of the vehicle and division of the proceeds, award the car to one spouse while compensating the other with assets of comparable value, or order one spouse to assume responsibility for car loans and insurance. It's important to note that any car loans will also need to be addressed, and the party who retains the vehicle may be required to refinance to remove the other party's obligation from the loan.