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 North Carolina, as in many states, cars are considered personal property and can become a point of contention during a divorce. When a married couple decides to divorce, any vehicles acquired during the marriage are typically considered marital property, unless they are inherited or received as a gift by one party. Marital property is subject to equitable distribution in North Carolina, which means that the court will divide the property in a way that is fair, though not necessarily equal. If the divorcing couple cannot reach an agreement on the division of their vehicles, the court will make a determination based on various factors, such as the length of the marriage, the value of the property, and the economic circumstances of each party. The court's decision will address who will retain ownership and who will be responsible for any associated debts, such as car loans and insurance payments. It's important to note that equitable distribution only applies to marital property, and any vehicles owned by either party before the marriage or acquired separately as a gift or inheritance are typically considered separate property and not subject to division by the court.