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 Vermont, as in many states, cars are considered part of the marital estate during a divorce and are subject to division between the parties. Vermont is an equitable distribution state, which means that marital property is not necessarily divided equally, but rather in a manner that is fair and equitable to both parties. If a couple cannot agree on how to divide their assets, including cars, the court will make a determination based on a variety of factors, such as the length of the marriage, the contribution of each spouse to the acquisition of the marital property, and the economic circumstances of each spouse. The court will decide who gets ownership of the cars and will also address the division of any financial responsibilities related to the cars, such as loan payments and insurance. It's important to note that if the car was acquired by one spouse before the marriage or is considered separate property for another reason, it may not be subject to division. An attorney can provide specific guidance based on the individual circumstances of the divorce.