If you and your spouse cannot agree on the terms of your divorce, including asset distribution, those terms will be left up to the judge overseeing your case. Any assets considered marital assets, including vehicles purchased with marital funds, will be subject to the asset division and distribution process.
Of course, vehicles are unique in that they are very high-value assets, and that there may still be loans out on them. Here are some issues to consider:
- Dealing with loans: If there is still outstanding debt on the vehicle, the party that receives the vehicle will likely be required to take on the entirety of the debt.
- Vehicle usage: The way the vehicle is used will likely influence the judge’s decision as to who will receive it. The party that used the vehicle most before the divorce will have the upper hand in getting the vehicle. In addition, if it’s a vehicle that’s primarily used for transporting children, it makes sense for the person who has custody of the children to get that vehicle.
- Valuation: The party who receives the vehicle may be forced to give up other assets to account for the value of the vehicle and create a more “equitable” distribution of marital assets.
- Multiple vehicles: If there are multiple vehicles to distribute in the divorce, all the above issues will still apply. If those vehicles are of similar value, there may not be a need to factor in the value of other assets in the divorce.
For more information about asset distribution in divorce, contact a trusted Minnesota lawyer at Appelhof, Pfeifer & Hart, P.A.