If you and your spouse are thinking about filing for divorce in Indiana, you may have come across the term “equitable distribution” while doing some early research concerning what you can expect from this process. Understanding how this principle will be applied to your property, including your family car, can help you prepare for the negotiation process and/or litigation.
Indiana is an equitable distribution state. This means that – if a couple can’t agree on their divorce terms absent court intervention – judges divide marital property in a way that they deem to be fair. The law does honor a presumption that a 50/50 split of marital assets is fair, but that presumption can be effectively rebutted under a variety of circumstances.
Marital property includes any assets acquired by either spouse during their marriage, with few exceptions. A family car is usually considered marital property unless it was purchased with separate funds (such as an inheritance) and kept solely in one spouse’s name, was purchased before a couple’s wedding date by one party or was gifted specifically to one spouse.
Key considerations
Say that you and your spouse cannot reach an agreement concerning who gets to keep your family car post-divorce. In this scenario, the court will consider several things when deciding:
- Primary use: The court will consider who primarily used the vehicle during the marriage. For example, if one spouse used the car for commuting to work or for daily responsibilities like taking children to school, this could influence the court’s decision to award the car to that spouse.
- Need for transportation: The court may also look at the transportation needs of each spouse after the divorce. If one spouse has limited access to other forms of transportation or if the car is necessary for their employment, the court might award the car to that spouse.
- Ability to afford the car: Ownership of a vehicle comes with financial responsibilities, including insurance, maintenance and loan payments. The court may consider whether each spouse has the financial ability to maintain the car after the divorce.
- Offsetting other assets: Sometimes, a car might be part of a larger negotiation involving other assets. For instance, one spouse might keep the car in exchange for the other spouse receiving a different asset of similar value, such as furniture, a portion of savings or a retirement account.
- Children’s needs: If you and your spouse have children, the court might consider how the car’s use relates to their well-being.
If retaining ownership of your car is important to you, seeking personalized legal guidance regarding what is likely to happen to it could help you to make more informed decisions moving forward.
