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 Louisiana, 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 spouses have an equal interest in such assets, regardless of whose name is on the title or who made the payments. If a couple cannot agree on how to divide their assets, including the ownership and financial responsibilities for cars, a judge will make the decision for them. The court will aim to divide the property equally unless there are reasons to deviate from this principle. The division of assets, including cars, will take into account factors such as the value of the property, any outstanding loans, and insurance obligations. The court may order the sale of the vehicle and division of the proceeds, one party to buy out the other's interest, or transfer the title and loan responsibilities to one party. It's important to note that any vehicles acquired before the marriage or by inheritance or gift to one spouse, even during the marriage, are typically considered separate property and not subject to division.