Getting divorced raises many questions about what each spouse gets to keep. One major question is: “who gets to keep the family car?”
Perhaps you have many good memories with a particular car, or you need the car to be able to go to work.
As Charleston divorce mediator, I have helped many people navigate complex property division issues. Here, you will find a guide to dealing with vehicles in a divorce in South Carolina.
Know the Law: South Carolina is an Equitable Distribution State
As a starting point, you should know how property division works in divorce. The South Carolina Bar explains that our state operates under an equitable distribution standard. Under South Carolina Code § 20-3-10, a divorcing couple’s marital property is divided in a fair manner. It can be a 50/50 split, but that is not guaranteed as a matter of law. If your vehicle is considered to be marital property—meaning it was acquired after the start of the marriage—it is subject to equitable distribution in a divorce.
Four Tips for Negotiating an Agreement for Vehicles in a Divorce
Are you preparing for a divorce in South Carolina? If you are trying to figure out what will happen with your vehicle(s), it is crucial that you take a proactive approach. Here are four tips for negotiating an agreement for handling your vehicles:
- Know Your Options (Sell It or Divide It): When it comes to deciding what to do with vehicles during a divorce, you generally have two options: A) Sell it or B) Divide it. Selling the vehicle and splitting the proceeds is often the simplest solution—especially if the car has significant value or if neither spouse can afford to buy the other out. How vehicles are handled in a divorce varies from relationship to relationship. There is no one “right” solution.
- Clarify Each Spouse’s Need for the Vehicle: It is essential to consider the practical needs of each spouse for a vehicle. Some of the most notable factors include work commute, transportation of children, and general lifestyle requirements. If one spouse primarily used the vehicle for family duties or if their job location demands a car, this should be weighed heavily in the decision process. Clarifying these needs can help determine the best answer.
- Consider Your Vehicle as Part of the Whole Divorce Settlement: Vehicles should not be negotiated in isolation. Instead, they should be viewed within the context of the entire asset and debt portfolio being divided. A holistic approach can open up opportunities for trade-offs. As an example, one spouse may take the car, while the other receives more from the family home equity or other assets. By balancing the vehicle’s value against other financial elements, you can find a solution that works best for your specific situation.
- Handle the Logistics (Registration, Auto Loan, etc): Once a decision is made about who retains the vehicle, it is crucial to manage the logistical aspects. Key issues include transferring the title and registration to the person who keeps the vehicle and sorting out any remaining auto loan details. If the vehicle is not paid off, the spouse who takes the car should ideally refinance the loan solely in their name. Though, that may not be financially viable in all cases. Finally, you should also be sure to update auto insurance coverage.
Mediation is an Effective Tool for Negotiating a Property Division Settlement
Splitting up property is often one of the most challenging—and contentious—aspects of a divorce. Mediation can be an extremely effective tool for negotiating a property division settlement during a divorce. It provides a neutral setting where both parties can discuss and resolve their differences with the help of a trained mediator. A great thing about mediation is that it encourages open communication and proactive collaboration. It can reduce the emotional and financial strain of a divorce. Finding an agreement for what should happen to your shared vehicles is one of many issues that can be dealt with during mediation.
Get Help from Our Charleston, SC Divorce Mediator Today
At Charleston Divorce Mediators, LLC, our Charleston divorce mediator is standing by, ready to help you find the best solution. Mediation can be an effective tool to work out property division issues, including those related to vehicles. Ready to get started? Schedule your confidential appointment today@843-323-4687. Our team provides family mediation services in Charleston and throughout South Carolina.
About Catherine Marra
Catherine Marra is a nationally certified Divorce Mediator with over 30 years of experience in Family Law, including 20 years in private practice and 10 years as a Family Court Magistrate. She uses her knowledge and experience to guide couples in negotiating divorce settlements so they can save money, complete the divorce process quicker, and get better outcomes than they would at trial.