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 New Jersey, 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, including vehicles, are subject to equitable distribution. This means that the court will divide the couple's property in a manner that is fair, but not necessarily equal. If the car or cars were purchased or leased during the marriage with marital funds, they are likely to be considered marital property and thus subject to division. If the divorcing parties cannot agree on how to divide their vehicles, including the transfer of titles and the responsibility for any associated loans and insurance, the court will make these decisions. The court will consider factors such as the economic circumstances of each party, the contribution of each party to the marital property, and the needs of each party. It's important to note that equitable distribution in New Jersey is based on case law and the specifics of each case, so outcomes can vary. An attorney can provide guidance on likely scenarios based on the particulars of the situation.