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 South Carolina, as in many states, cars are considered part of the marital property in a divorce and are subject to division between the spouses. Marital property includes all property acquired by either spouse during the marriage, except for inheritances or gifts specifically given to one spouse. When a couple divorces, if they cannot agree on how to divide their assets, including cars, the court will step in to make a decision. South Carolina follows the 'equitable distribution' approach, which means the court will divide marital property in a way that is fair, but not necessarily equal. Factors the court may consider include the duration of the marriage, the value of the marital property, the income and earning potential of each spouse, and contributions to the marriage, among others. The court will also consider the ownership and responsibility for any car loans and insurance when making its decision. It's important to note that equitable distribution only applies to marital property, so any cars owned by one spouse prior to the marriage or received as a personal gift or inheritance would typically be considered separate property and not subject to division.