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 Minnesota, as in many states, cars are considered personal property and can become a point of contention during a divorce. When a couple divorces in Minnesota, the state's equitable distribution laws come into play. This means that all marital property, which includes cars purchased or leased during the marriage with marital funds, is subject to division in a way that is fair and equitable, but not necessarily equal. If the divorcing parties cannot reach an agreement on their own regarding who gets which vehicle, the responsibility for any associated loans, and the handling of insurance, the court will intervene. A judge or jury will assess various factors, such as each party's economic circumstances, contributions to the acquisition of the property, and the value of the property, to make a decision on the division of the cars and related financial responsibilities. It's important to note that 'marital property' does not include property that either spouse acquired before the marriage, received as a gift, or inherited, unless that property has been commingled with marital assets.