Five Factors When Dividing Vehicles in a Divorce

 Posted on November 24, 2025 in Property Division

For most families in the U.S., a vehicle is a necessity. It can even have an emotional element. When divorce is on the table, it may be a marital asset that must be divided among the spouses. Working with an experienced Kane County, IL divorce lawyer can help you avoid mistakes and ensure the division of vehicles and other property is fair and clearly documented.

What Do You Need To Consider When Dividing Your Vehicles in a Divorce

Dividing vehicles may seem simple if you own two cars. You might assume it is as easy as you take one, and your spouse takes the other. However, hidden factors like debt, ownership records, and vehicle value can make this process much more involved. If you and your spouse cannot reach an agreement, a judge will make the final decision based on all relevant details. Consider some questions that can guide you through this process.

Is the Vehicle a Marital or Separate Property? 

Before assigning ownership, the court must determine whether each vehicle is marital or non-marital property. If you purchased the car during the marriage using joint income, it is typically marital property. However, if you purchased it before the marriage, received it as a gift, or inherited it, it may remain separate.

There are exceptions. Even if the car belongs to you alone, if your spouse helped pay the car loan or covered maintenance costs, or if marital funds were used to improve the vehicle, it could become partially marital property. Under 750 ILCS 5/503(c), the court has the authority to classify mixed property and divide its value fairly between both parties.

Who Gets Each Vehicle?

If you have multiple vehicles, you and your spouse can decide who will keep each one. When spouses are unable to reach an agreement, the court will assign vehicles based on need and use. Courts often look at practical concerns such as:

• Which spouse uses the vehicle daily for employment or parenting responsibilities

• Who has a valid driver’s license or the ability to insure and maintain the vehicle

• Whether either spouse relies on the vehicle for transportation of children or dependent relatives

For example, if one spouse uses a truck to earn income or transport equipment for work, that vehicle may be awarded to them. The other spouse may receive a car of equal or lesser value, along with additional property to balance the division.

How Much Are the Vehicles Worth?

A fair property division requires accurate values for every asset. Vehicles can vary widely in value based on their age, mileage, condition, and brand. In some cases, a car may also carry emotional or collectible worth that affects negotiations.

To avoid disputes, each vehicle should be appraised by a professional. The appraiser will provide an objective market value, which helps ensure that any trade-offs between vehicles or other property are fair. For example, if one spouse keeps a more valuable car, the other may receive additional equity in the home or savings account.

Are You Still Paying Off a Loan?

Many vehicles come with outstanding loans. If you and your spouse co-signed for the loan, you are both responsible for repayment. In Illinois, debts are divided during divorce, just like assets. Typically, the spouse who keeps the vehicle assumes the remaining loan balance, but that arrangement must be clearly stated in your divorce decree.

Sometimes, a spouse may be awarded the car but not have the financial means to make the payments on their own. In those situations, the court can assign shared responsibility or adjust other parts of the settlement to make the arrangement fair. You have to ensure that the lender updates the account to reflect who owns the loan. If this is not done, missed payments could hurt both spouses’ credit scores.

Whose Name Is on the Title?

Titles must match the new ownership arrangement after divorce. Updating the title prevents future disputes or complications when selling or trading the vehicle. You can change ownership by filing an Application for Vehicle Transaction with the Illinois Secretary of State.

If your ex-spouse’s name remains on the title, they may have to sign off on future transfers. This can create unnecessary tension and delay. Updating the title right away ensures a clean break and protects your rights to the vehicle moving forward.

What Happens to Vehicle Insurance After Divorce?

Vehicle insurance has to be updated once the divorce is finalized. Each spouse should have a separate policy reflecting the new ownership and living arrangements. You should also review:

• Coverage limits and deductibles

• Who is listed as the primary driver

• Whether teenage children remain on one or both policies

If a vehicle remains jointly owned for a short period after the divorce, both names should stay on the policy to ensure coverage if an accident occurs.

How Do Taxes Affect Vehicle Transfers in an Illinois Divorce?

In most cases, transferring a vehicle as part of a divorce settlement does not trigger sales tax. Under 35 ILCS 105/3-10, Illinois provides an exemption for property transfers made under a divorce judgment. However, you must document the transfer properly to qualify.

You may still need to pay title or registration fees when updating ownership. Keeping your paperwork organized helps avoid disagreements and makes sure you follow state and federal tax rules.

What To Do If Your Spouse Refuses To Transfer a Vehicle

Sometimes, divorce can be contentious. One spouse may refuse to hand over keys or sign documents just out of spite. In that situation, your attorney can file a motion for enforcement. The court may order your ex-spouse to comply and, if necessary, issue a contempt citation.

If the vehicle is still financed, the lender may also require proof of the divorce judgment before modifying the account. Until all this is resolved, you should keep making payments until the loan has been legally transferred, or both parties could face credit penalties.

Contact a St. Charles, Illinois, Divorce Lawyer

Attorney Tricia Goostree is committed to her community and her clients. She serves on the Prairie State Legal Services board of directors, volunteers with the Northern Illinois Food Bank, and provides pro bono legal services for individuals and families in need. She also coordinates high school mock trial programs for the Kane County Bar Association & Foundation. Her leadership reflects the firm’s dedication to service, fairness, and strong advocacy both in and outside the courtroom.

To discuss your case with a knowledgeable Kane County, IL divorce lawyer, call Goostree Law Group at 630-584-4800 and schedule a free consultation. The firm is ready to help you protect your property, safeguard your rights, and move forward with confidence.