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 York, as in many states, cars are considered marital property if they were purchased or leased during the marriage with marital funds. In the event of a divorce, if the couple cannot agree on how to divide their assets, including cars, the court will step in to make a determination. New York follows the principle of 'equitable distribution,' which means that the court will divide marital property in a way that is fair, though not necessarily equal. The court will consider factors such as the duration of the marriage, the health and age of each spouse, their earning potential, and their contributions to the marriage, among others, when deciding who gets the car(s). The court will also decide on the responsibility for any outstanding car loans and insurance payments. If the car is determined to be separate property (owned by one spouse prior to the marriage or received as a gift or inheritance), it may not be subject to division. It's important for individuals going through a divorce to consult with an attorney to understand their rights and obligations regarding the division of assets like cars.