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 Maryland, as in many states, cars are considered personal property and can become a point of contention during a divorce. When a couple divorces, their assets and debts must be divided. Maryland follows the principle of equitable distribution, which means that the court will divide marital property in a way that is fair, but not necessarily equal. If a car was purchased or leased during the marriage with marital funds, it is likely to be considered marital property and subject to division. If the divorcing parties cannot agree on who should retain ownership and responsibility for any associated loans and insurance, the court will make a determination. The court's decision will take into account various factors, such as the use of the vehicle, the financial situation of each party, and any existing agreements or conduct that may influence the division of property. The judge or jury will then decide who gets the car, who is responsible for any remaining payments, and how the title should be transferred. It is advisable 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.