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Automobiles

titles and loans in divorce

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 Mexico, which is a community property state, all assets acquired during the marriage are generally considered to be owned equally by both spouses. This includes cars, whether they are owned or leased. In the event of a divorce, if the couple cannot agree on how to divide their assets, including the transfer of ownership and responsibility for car loans and insurance, the court will make a determination. The court's decision will aim to divide the property, including cars, in a manner that is equitable and fair to both parties. This could mean that one spouse is awarded the car while the other receives assets of comparable value, or it could involve selling the car and dividing the proceeds. The court will also consider any car loans and insurance responsibilities and may order one party to continue paying these expenses or reassign them as part of the divorce settlement.

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Automobiles

titles and loans in divorce

Individual & Family Legal Plan

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New-Mexico State Code

New-Mexico State Code

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Automobiles

titles and loans in divorce