If you are contemplating divorce, you may – very understandably – be concerned about whether your spouse will be entitled to keep either your car or a vehicle that you share. Concerns including how and when the vehicle was acquired, the value of other marital assets and each spouse’s personal needs will impact the outcome of this scenario, if you and your spouse cannot reach an amicable solution without court intervention.
New York law distinguishes between “marital property” and “separate property” in a divorce scenario. Marital property usually consists of assets acquired by either spouse during their marriage, regardless of who made the purchase or whose name is on a title to a particular asset. Separate property, on the other hand, generally consists of assets acquired before marriage, inheritances naming one spouse alone, gifts to one spouse and certain personal injury awards.
As a result of these distinctions, if you purchased your car before your marriage, it may be considered separate property, and your spouse would generally have no claim to it. However, if you bought the car during the marriage with marital funds, the vehicle will likely be classified as marital property, even if you are the primary driver or the vehicle is in your name.
If the courts need to get involved
New York courts honor the principle of “equitable distribution,” which means that the division of a divorcing couple’s assets is meant to be grounded in fairness. This means that if you and your spouse cannot agree about how to divide your marital estate – all of your marital property as a whole – the courts won’t necessarily award an equal 50/50 split of that property. Instead, the courts will consider a host of issues when dividing both the estate overall and individual assets. For example, a judge may give great weight to who primarily uses a particular vehicle and whether one spouse relies on it for work or caregiving responsibilities.
Ultimately, if both you and your spouse want the car, or if it holds significant value, the court may allocate other assets to the spouse who isn’t awarded the vehicle, such as savings or personal belongings, to balance out the division overall. Meaning, that if you are awarded the car, your spouse might receive a greater share of a mutual savings account or another valuable item to offset its value.
With all of this said, it is important to remember that each divorce scenario is unique. Therefore, it is generally wise to seek personalized legal guidance before either getting your hopes up or resigning yourself to defeat when it comes to keeping your car once your divorce is finalized.