In Texas, determining who keeps the cars that a couple owns when that couple decides to divorce is not always a straightforward process. Couples may need to consider how these assets are classified legally as they work to divide their property.
Texas is a community property state, which means that assets acquired by either spouse during their marriage is typically considered community property and is, thus, subject to division upon divorce. However, property that one spouse owned prior to their marriage – or that they acquired as a gift or inheritance while married – is often treated as separate property and retained by the spouse who owns it.
Community vs. separate property
Most vehicles purchased during a marriage are considered community property. Even if only one spouse’s name is on the title, if the vehicle was acquired during the marriage with marital funds, it is likely to be deemed community property.
But, if a car was owned by one spouse before the marriage or was a gift or inheritance received solely by one spouse, it will likely be considered separate property. This car would typically not be subject to division and would remain with the spouse who owns it post-split.
Division of Cars in Divorce
When it comes to dividing cars in a litigated divorce, several factors are considered:
- Equitable distribution: Texas courts aim for a “just and right” distribution of community property, which does not always mean equal. Factors such as each spouse’s financial situation, fault in the dissolution of the marriage and future needs may be considered when dividing assets.
- Valuation and balancing: The value of the cars is considered in the context of other marital assets. For instance, if one spouse keeps a more valuable car, they might receive less of another type of asset to balance the scales.
- Use and possession: Practical considerations, such as who primarily uses the car or needs it for work, can also influence who retains ownership.
Couples who don’t litigate their differences can make whatever decisions they want regarding the issue of car ownership post-divorce. If their differences cannot be settled amicably, a judge will factor in all of these considerations.
