Partner
Nearly everything you own gets divided up in a divorce, and that includes your vehicles. Whether you own a luxury car collection or a single antique vehicle, the question of which spouse gets to keep a costly automobile often leads to considerable conflict during divorce proceedings.
Taking the time to understand how the ownership of expensive cars is split up among spouses in a divorce can help you know what to expect from the asset division process and help you set your goals and expectations regarding your treasured vehicle(s).
Determining Vehicle Ownership During Divorce
Vehicles, including luxury and antique or collectible automobiles, are generally considered marital property in New York and are, therefore, subject to asset division during the divorce process.
The general rule is that any vehicles acquired during marriage are the property of both spouses, regardless of whether the whole name is on the title. That is true irrespective of whether the car is purchased separately or jointly. It also applies to vehicles that are given as gifts from one spouse to another.
New York property division laws might treat a costly vehicle as the separate property of one spouse under the following specific circumstances:
- One spouse owned the vehicle before the marriage
- The vehicle was a gift from a third party to one spouse alone
- The vehicle was inherited
However, it’s important to be aware that investing marital resources into an expensive vehicle blurs the property ownership line. If marital assets, such as one spouse’s income earned during the marriage, were at any point used to modify, restore, or store the vehicle, the other spouse would likely be entitled to some percentage of the car’s ownership during a divorce.
Splitting Vehicle Value Between Divorcing Spouses
If your divorce attorney can successfully establish that an expensive car is your separate property as opposed to marital property, the vehicle will likely be protected during the process of asset division. If the car cannot be deemed as anything other than marital property, though, your spouse will be entitled to some part of its value under the law.
Property division, when it comes to vehicles, will begin with having the car appraised so that a dollar value can be established. Appraisals are completed with all other marital assets, too, such as property and other items, not just cars.
Regardless, once all assets are appraised, they need to be divided between spouses. And in New York, asset division is done in a way that splits up the assets equitably, not equally.
Equitable division can be a complicated concept. Instead of splitting up assets equally, the goal of equitable division is to divide marital assets in a way that’s fair and impartial, given the contributions of both spouses. In other words, the way in which your assets will be split between you and your spouse will vary based on the details of your case.
Your and your spouse’s attorneys will start by identifying the value of the vehicle and the percentage of that value owed to each spouse. Your attorney can then help you negotiate a solution during mediation wherein you maintain full ownership of the vehicle, perhaps by giving up other assets or bank holdings.
Speak With Our Divorce Lawyers in Garden City, New York
If you’re planning a divorce in Garden City, New York, and you’re determined to maintain ownership of a luxury or antique vehicle, you need a solid legal strategy in place.
Aiello & DiFalco is a Garden City family law firm that assists in high net-worth divorce cases, as well as those involving high-value assets. Our skilled divorce attorneys can help identify ownership rights, assist with vehicle appraisal, and determine an asset division plan that protects a beloved vehicle. Contact us today to schedule a consultation and speak with a member of our team.