Five Factors When Dividing Vehicles in a Divorce

 Posted on March 20, 2020 in Division of Property

Unless you live in an area with a robust public transportation system, your vehicle is one of the most essential properties that you own. Thus, your car is one of the more important properties that you will include in your division of property during a divorce. The division may seem straight-forward if you own two vehicles. You each will get one vehicle. However, there are several issues related to your vehicles that you need to consider before completing your divorce:

1. Is the Vehicle a Marital or Separate Property?: If you purchased the vehicle during your marriage with your shared income, then it is marital property. It may be separate property if you purchased it before your marriage, you received it as a gift, or you managed to pay for it with money that is separate from your marital assets. However, a vehicle you purchased before your marriage can become marital property if your spouse has helped you repay the loan on the vehicle.
2. Who Gets Each Vehicle?: When you have two marital vehicles, you must decide which vehicle each of you will keep. If you cannot agree on how to divide the vehicles on your own, a divorce court may decide based on who primarily drives each vehicle and how they use the vehicle. For instance, the court may award you a truck that you need for transporting equipment for work.
3. What Are the Values of the Vehicles?: Vehicles can differ in value depending on their model, age, and condition. If your spouse is getting the more valuable vehicle, you can request compensation in the form of other marital assets. You need a professional appraiser to determine the value of any vehicles that you own, from cars to motorcycles.
4. Are You Still Paying Off a Loan?: You and your spouse share the debt on a vehicle loan if you cosigned on the loan agreement. Marital debts are equitably divided between spouses in an Illinois divorce. Spouses often agree that the person who keeps the vehicle should be the one who is responsible for the remainder of the loan. However, you can also request that your spouse help you repay the loan if you do not have the financial means to do it on your own.
5. Whose Name Is on the Title?: Removing or changing the names on your vehicle title is something you must do separately from your divorce. Failing to update the title could cause problems later if you want to sell the vehicle. If your former spouse’s name is still on the title, you cannot sell the vehicle without their permission. You can update your vehicle title by submitting an Application for Vehicle Transaction with the Illinois Secretary of State’s office.

Contact a St. Charles, Illinois, Divorce Lawyer

Your marital vehicles are one part of the many valuable properties that you must divide during your divorce. A Kane County divorce attorney at Goostree Law Group can help you in negotiating an equitable division that lets you keep the properties you need most. To schedule a free consultation, call 630-584-4800.

Source:

http://www.ilga.gov/legislation/ilcs/documents/075000050k503.htm