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 Rhode Island, as in many states, cars are considered part of the marital estate and are subject to division during a divorce. The state follows 'equitable distribution' laws, which means that the court will divide marital property in a way that is fair, but not necessarily equal. 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 and maintenance of the marital assets, and the economic circumstances of each spouse. The court will decide who gets ownership of the car or cars and will also address the responsibility for any outstanding loans and insurance. It's important to note that 'marital assets' typically include all property acquired during the marriage, regardless of whose name is on the title. Therefore, even if only one spouse's name is on the car title, the vehicle may still be considered a marital asset if it was purchased or leased with marital funds.