My spouse and I purchased a car recently; now we're divorcing. What should we do about the car? Is it community property?

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My spouse and I purchased a car recently; now we're divorcing. What should we do about the car? Is it community property?

May 14, 2012, 08:25:00 AM

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My spouse and I purchased a car recently; now we're divorcing. What should we do about the car? Is it community property?

If you're in a community property State, the car is community property. However, that's just one issue. Another issue is that you signed the loan papers. Therefore, if your spouse keeps the car but defaults on the loan, the loan company will come after you. 

In settlement, if your spouse is keeping a jointly-owned vehicle, request that they agree to refinance the car in their name only. That will properly remove any financial responsibility from you.

Articles in « General Questions »

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