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When someone gets divorced, virtually everything they own is subject to division.  This includes everything from your retirement accounts right down to your frequent flyer miles.  It is not a fun prospect to consider and divorce should never be taken lightly but in many cases it is the only answer and the only path to attempted happiness.  When that happens it is important to have an experienced divorce lawyer to help you navigate this difficult time in your life.  This blog is written to very generally address what will happen with your car in a divorce.  If you have specific questions, please do not hesitate to contact us to schedule a consultation by clicking on this link or calling (248) 608-4123.

What Will Happen To My Car If I Get Divorced In Michigan?

In virtually every divorce case the division of property and debt is an issue.  In Southeastern Michigan (The Metro Detroit area), there is almost always at least two cars involved.  The first question is usually, who gets what car?  Typically whomever was the primary driver of the vehicle during the marriage is awarded that particular vehicle.  It does not really matter so much in whose name the car is titled as the title can be easily transferred either shortly after the divorce is finalized or really at any time during the divorce.

The next questions usually involve either insurance or vehicle loans.  When it comes to insurance, during the divorce the vehicle should remain insured as it was before the divorce was filed.  Once the divorce is finalized, typically the person that is awarded the vehicle will be responsible for insuring it.  When it comes to the loan associated with the vehicle that too typically becomes the responsibility of the person that is awarded the vehicle.  This can create some complications and require some negotiation and careful document drafting if the loan on the vehicle is in the name of the other spouse (the one that does not get the car).  The reason this is essential is of course to protect the credit of the "other spouse".

The final question to be answered about cars for the purposes of this blog, is the determination of value.  Typically we use the blue book value less the balance of any loan associated to determine the value of the vehicle.  If it is a collector's item or a "classic car" then we typically involve the services of a mutual appraiser or each spouse obtains their own appraisal to determine the value.  Then the value of the vehicle that is awarded to one spouse is offset against other property or cash awarded to the other spouse to reach a roughly equal division of the property as a whole.

This blog was very generally address the issue of what happens to a car in a divorce in Michigan.  If you are facing the potential of a divorce or separation, contact us to schedule a consultation by clicking on this link or calling (248) 608-4123.