The first thing you need to know about what happens to your car if you divorce is the value of the vehicle. This asset, like the rest of the couple's belongings, can be the subject of confrontations between two people who are trying to divorce.
Knowing the economic cost of the vehicle is important as many doubts arise as to whether the car is being financed, whether its value at the time of purchase or at the time of divorce is important...etc. As there can be many variables, today we will explain the most common cases.
Vehicle in separation of property regime
In the case of a marriage in a separation of property regime there is little discussion, the vehicle is kept by its owner, according to the vehicle registration certificate, or what is the same according to the papers. If it is a vehicle acquired with money belonging to one of the parties, the question is resolved.
On the other hand, if the vehicle has been paid for in part by the partners, they can either reach a mutual agreement and one can compensate the other financially (make a sale between them) or they can go to court to share it out.
Vehicle when there is a community of property regime
It is different if the car was bought after the marriage in community of property, it belongs to both spouses equally. Here it is more common for disagreements to arise as to its use and value.
As mentioned above, if there is an agreement between the parties, a value is established as the basis for the process and the party who keeps the vehicle compensates the other party with an economic amount.
When the vehicle is valued to liquidate a community of property partnership
The big question is when is the vehicle valued in order to liquidate a community of property? on the date of divorce or on the date of liquidation.
Sometimes, due to financial problems or simply a lack of organisation, a couple may have their divorce in 2020 and dissolution of the community of property in 2023. This means that the vehicle is considered to be a community property until the latter date (and this is the value to be taken into account for the distribution).
Can the vehicle be valued according to the official tax tables?
This is possible, but it is not close to the real market value. The tax office gives an approximate price of the car based on parameters such as model and age, without paying attention to aspects such as condition, mileage, improvements and wear and tear.
If you are the spouse who wants to take possession of the car, it is obviously in your interest to have it valued by the tax authorities. On the other hand, if you are the party who receives the financial consideration, you will be disadvantaged.
What aspects of the car are valued at the time of divorce?
There are several important aspects for the valuation of a car, such as the following:
- Age, date of first registration.
- State of repair, with particular attention to the engine, appearance of the vehicle, etc.
- Second-hand market price.
How to define the value of the vehicle in a divorce
To find out the value of a car in a divorce, it is advisable to research the prices of a vehicle in similar condition on the second-hand market. On the basis of the aspects explained above, a comparison of vehicles is made.
The more information we can provide about the vehicle, the fairer the valuation will be and the less damage there will be for the divorcing couple. Now that you know what happens to the car if you get divorced, you can contact us for advice on all the details of the divorce. Call us.