Division of a car (vehicle) during divorce - pitfalls

Buying a new car today is quite an expensive pleasure. That is why many people resort to car lending services, because few people can afford to pay a large amount of money at once.

During a divorce, ex-spouses are faced with the problem of dividing a car purchased on credit. In the material below, I will talk about how to divide a car purchased on credit during marriage.

Division of a credit car in accordance with the law

According to the law, not only material assets acquired during marriage, but also the debt obligations of the spouses are considered jointly acquired. During the divorce process, all this must be divided between the spouses in equal proportions. This rule is reflected in Article 39 of the Family Code of the Russian Federation.

The car loan section has its own characteristics. A targeted loan is issued with subsequent encumbrance in the form of a car until the existing debt is fully repaid.

All original documents for the vehicle are kept in the financial institution that provided such a targeted loan until it is fully repaid. That is why you cannot transfer ownership of the car to the second spouse or sell it without the consent of the bank.

Since all obligations to repay the loan fall on the shoulders of both spouses, even if the marriage is dissolved, their subsequent payment can be divided equally between them.

The division of a credit car can be carried out as follows:

monthly payments are divided in half between the former spouses. At the end of the loan repayment, the car is divided equally between them;
the obligation to repay the loan remains with the borrower, and the second spouse receives half the cost of the contributions paid during the marriage;
one of the spouses refuses to repay the loan and does not claim his property part of the disputed car;
The car is sold with the consent of the bank. The money received from its sale goes to repay the remaining part of the loan. The remaining funds are subject to division between the spouses in equal shares.

If there is a disagreement in determining the amount of compensation due to one of the spouses, it is necessary to conduct an independent expert study to determine the market value of the car.

If one of the spouses does not agree with the specified amount, then he needs to carry out a re-examination.
All expenses for such research are borne by the spouses. It will be a little more difficult to divide a car purchased on credit before marriage.

If such a loan was repaid from joint marital funds, then the second spouse has the right to demand compensation in the amount of half of the contributions paid during the marriage.

To do this, you must provide evidence confirming the repayment of obligations from the family budget.

How to Divide a Car During a Divorce

There are several ways to divide jointly acquired property. Spouses can agree among themselves or go to court to carry out the procedure for dividing jointly acquired property.

So, there are three ways to divide joint values:

drawing up a settlement agreement;
conclusion of a marriage contract;
filing claims for division of jointly acquired property in court.

Spouses can draw up a settlement agreement on the division of a credit car at any time during their family life or divorce proceedings. Such a document is drawn up in simple written form, in two copies.

The agreement specifies the obligations to repay existing loan obligations, the amount of compensation due to one of the spouses, or alternative methods of division.

It is not necessary to have such a document certified by a notary, but if there is a possibility that one of the spouses will not fulfill the conditions specified in it, then it is better to visit him to be on the safe side.
A prenuptial agreement is drawn up only before the marriage or during its existence.

Such a document cannot be drawn up during the divorce process. A marriage contract can change the legal status of property acquired by spouses during family relations.

There have been cases when, under the terms of the marriage contract, the second spouse did not receive any of the jointly acquired property. The difference between a marriage contract and a settlement agreement is that it must be notarized. The prenuptial agreement must contain information about the future fate of the car purchased on credit, the procedure for repaying existing obligations and use.

In cases where the spouses have not found a compromise when dividing a loan car, they can turn to the judicial authorities to carry out its division.

When filing a claim, you must attach the following package of documents:

identity cards of the plaintiff and defendant;
car loan agreement;
certificate of conclusion (dissolution) of marriage;
other documents that could affect the outcome of the court hearing.

During court hearings, the car purchased on credit will be divided in accordance with current legislation.

When making a decision, the court will take into account all the nuances associated with the division of such property.

Participation of a financial organization in legal proceedings

Court hearings related to the division of collateral property must be considered with the obligatory participation of the creditor in the process. The financial institution must be notified of all changes occurring in the family. A bank representative will ensure his interests. The main goal of the lender is to return the funds lent.

Having studied all the circumstances of the case, the bank representative can offer his solution in the current situation:

leave monthly payments to one of the spouses;
renew the loan agreement for both spouses, dividing the monthly payment equally;
give your consent to the sale of the collateral property and full repayment of the existing debt.

When making a decision, the court will also take into account the opinion of the representative of the financial organization.

In cases where the bank does not agree with the decision made by the court, it has the right to appeal it within ten days from the date of its announcement.
The division of a credit car requires knowledge of some of the nuances associated with its encumbrance. The most correct solution will be the possibility of resolving the existing dispute peacefully, while respecting the interests of all its participants.

How is a car divided during a divorce if it is on credit?

The division of jointly acquired property gives rise to many disagreements between spouses, which can only be resolved in court. In this article, we will look in more detail at how a car is divided during a divorce if it is on credit.

Division of the car by agreement of the spouses

Nowadays, a car is not only a means of transportation, but also a basic necessity. Therefore, often both spouses who decide to divorce apply for vehicles. The division of movable property involves the payment of monetary compensation to the husband or wife. Litigation can drag on for many years, especially if there is an encumbrance placed on the car.

According to the current legislation, namely Article No. 34 of the RF IC, all property acquired during marriage is joint and is divided in half upon divorce.

At the same time, the property of the spouses includes not only movable assets, real estate, valuables and funds, but also debt.

According to legislation, during a divorce, the car is divided into equal shares. Exceptions include the following:

if the vehicle was received by one of the spouses as a gift or by inheritance;
if the spouses have entered into a marriage contract that specifies the sole owner of the vehicle after the divorce.

A car purchased on credit is the property not only of the spouses, but also of a third party - the bank. If the debt is not paid, a lien is placed on the vehicle. In addition, the spouses are subject to administrative liability and penalties. To avoid such injustice, the ex-husband and wife need to agree on the following basic issues:

Who will get the car?
Who will pay the loan after divorce?

Since movable property is classified as indivisible, the second spouse is required to pay monetary compensation. Its size must be at least half the cost of the vehicle.

Voluntary division of a car
purchased on credit during a divorce will allow spouses to avoid unnecessary costs of litigation and also save time.

The agreement on the division of the credit car is drawn up in the presence of a notary. After certification by the official, the document is signed by the parties and has legal force.

Subsequently, all responsibility for repaying the loan, as well as maintaining the vehicle, passes to the spouse who is the owner by agreement.

The original document must contain the following:

name of the agreement;
details of the notary office;
Full name of the spouses, passport details;
detailed description of the disputed property;
the procedure for transferring property rights to one of the spouses;
loan obligations;
the amount of the monthly payment, the date of transfer of funds to the bank;
amount of compensation to the second spouse;
payment procedure (cash, bank card);
other terms of compliance with the agreement;
liability for failure to fulfill an obligation;
date, signature, notary visa.

The agreement may also describe other property that is controversial for the spouses. Such a peace agreement is unified and can be concluded both during marriage and after divorce.

How to divide a credit car through court?

Division of a car purchased on credit is one of the most popular cases that exist in judicial practice.

However, the division of such property involves many nuances that should be considered individually.

Basically, the loan is issued to one of the spouses, but this factor is not an argument for the court. The second spouse also has the right to claim property if:

invested his own savings in the car;
in case of involuntary disability (for example, if the ex-wife was on maternity leave when buying a car).

Basically, if a loan is registered for a car, the second spouse acts as a guarantor (subsidiarily responsible person).

Thus, the obligation to repay the loan may even be assigned to a spouse, for example, who is not the owner of the car according to the documents.

The legislation provides for three possible ways to divide loan property between spouses:

Conclusion of a settlement agreement. By drawing up an agreement, which is certified by a notary, spouses can independently divide the vehicle and loan obligations. As a rule, the car owner pays off the debt and pays compensation to the second spouse. A real estate appraiser is hired to determine the amount of payment;
According to the terms of the marriage contract. If the terms of the agreement were not violated during the marriage, the property goes to the spouse indicated in the document. In this case, the loan is repaid by the owner. Nowadays, most banks do not provide a loan without a preliminary marriage contract. Thus, one of the spouses is relieved of responsibility for repaying the loan when dividing property;
In a court. If the spouses cannot come to an agreement, the division of property is determined in court 50/50, as well as the obligation to repay the loan.

By law, movable property, such as a car, is included in the category of indivisible objects. Therefore, the court awards the car to only one owner.

Mainly, the owner will be the spouse who invested most of the money in the purchase of the car or maintained and used the car more than the other.

The second spouse is awarded monetary compensation in the amount of half the cost of the vehicle minus the remaining debt.

Another possible way to divide a car during a divorce is to pay off the loan equally. In this case, an encumbrance is placed on the car until the debt is paid in full. The car will belong to two spouses. After repaying the loan, you can sell the car and divide the funds equally.

The statute of limitations for the division of marital property is 3 years. During this time, you must file an application with the court at your place of residence. If the cost of the car is more than 50 thousand rubles, the claim is considered by the magistrate court.

List of documents for the court

Division of a car purchased on credit requires the collection of a large number of documents. The first thing the plaintiff will need is a copy of the agreement with the credit institution, even if the spouse acts as a guarantor. To confirm payments, please attach a personal account or bank statement indicating the amount of funds transferred.

Basic list of documents for the court:

statement of claim;
receipt of payment of state duty;
the applicant's identity card;
expert assessment of the cost of the car;
a copy of the vehicle purchase agreement;
technical passport for the car;
marriage registration certificate;
a copy of the court decision on divorce (when dividing property after divorce);
an extract from the traffic police, which indicates the owner of the vehicle, etc.

The list of documents can be supplemented at the request of the bailiff.

An expert assessment of the cost of the car is carried out at the expense of the plaintiff. The document is required when paying the state fee. At the same time, it is possible to conduct an examination both in the presence of a car and in its absence. The appraiser analyzes the condition of the car based on the following information:

year of issue;
used car;
lifetime;
mileage;
car make, color, interior equipment;
participation in an accident;
the need to replace any parts;
engine capacity.

Based on known data, prices on the market are analyzed, as well as the demand for the car in the region of the country. Then the average cost of the car is displayed. The document is certified by the signature of the expert and the seal of the organization.

Sample statement of claim

A claim for divorce and subsequent division of property is filed in court at the defendant’s place of residence. The document is drawn up in any order, with a detailed description of the disputed car and the disagreements that have arisen between the spouses. The judge always takes into account if the husband or wife tried to resolve the conflict pre-trial.

However, it is often impossible to prove this fact due to the lack of documents. The defendant's registered letters with a proposal to resolve the dispute have legal force. If the second spouse ignores requests for a peaceful division of the car purchased on credit, the plaintiff can begin preparing an application to the court.

The statement of claim for the division of a car taken on credit contains the following information:

name of the judicial authority, location address;
passport details of the plaintiff and defendant;
the essence of going to court;
reason for divorce;
a list of jointly acquired property of the spouses;
detailed information about the car that is subject to division (registration number, make, color, engine size, license plates, etc.);
information about the loan (name of the creditor bank, amount of remaining debt, who paid the loan earlier and how much, for whom the loan was issued, etc.);
plaintiff's claims;
reference to legislative acts;
list of attached documents;
cost of claim;
date, signature of the applicant.

Car assessment for court

Basically, the market value of the car is determined before filing a claim. However, the defendant may challenge the expert opinion in court upon motion.

An independent assessment of a vehicle for a court is carried out by qualified specialists who have received education in this field and have the necessary documents and certificates. At least two appraisers participate in the examination. The vehicle is provided for inspection. In this case, the following documents will be required:

technical passport for the car;
certificate of registration of the car with the traffic police;
customer's identity card;
court statement.

When inspecting movable property, significant damage is revealed that may affect the final assessment. The amount of the state duty is determined by expert opinion, based on the value of the car at the time of the divorce.

How to notify the bank about the division of a credit car during a divorce?

When concluding an agreement with a credit institution, it is usually stated that the borrower is obliged to notify the bank of all important changes in his life. Such events include divorce, since it can significantly change the financial well-being of the client. When dividing property between spouses, the bank acts as a third party with whom it is necessary to agree:

remaining payment amount;
which spouse will repay the loan in the future;
date of monthly accruals.

Also, the second spouse remains the guarantor and is obliged to repay the loan if the main debtor evades responsibility for one reason or another and is unable to pay the debt.

In most cases, it is advisable to coordinate the issue of dividing a credit car with a former spouse with the bank and take into account its recommendations.

The financial institution is interested in the absence of bad debts, therefore it has a negative attitude towards changes that may increase the risk of not repaying money.

In the event of a divorce and division of property, the borrower is required to review the terms of the loan agreement and enter into a new contract.

The bank can offer the debtor several options for dividing property and loan obligations:

pay the remaining amount ahead of schedule and dispose of the car at the discretion of the spouses;
re-issue the loan agreement to the actual car owner;
review the terms of the lending program for a bona fide client.

Notifying the bank about the division of a car purchased on credit is mandatory when spouses divorce.

How is a loan car divided during a divorce?

The division of jointly acquired property gives rise to many disagreements between former spouses. One of the most pressing issues in divorce recently is the question of who will get the vehicle. In the modern world, for many people, a car has become not a means of transportation, but a basic necessity.

And when dividing such movable property, many nuances almost always arise, especially if the car was purchased on credit. After all, dividing credits during a divorce is a rather complicated procedure.

That is why, just in case, everyone who has a car purchased on credit and who is going to get married or has had the official status of a spouse for a long time should know about their rights and understand how to divide a car after a divorce.

How are vehicles divided by law?

According to Article 34 of the Family Code of the Russian Federation, all property that spouses acquired jointly during marriage is considered their common joint property.

Moreover, the concept of “property” includes not only property and cash, but also any debts (including under a loan agreement).

By default, in the event of a divorce, a car, like any property acquired during marriage, is divided into equal shares. There are two main exceptions to this rule:

the car was received by one of the spouses as a gift, including the purchase of transport with donated funds, or belongs to the category of personal belongings (Article 36 of the RF IC);
The spouses entered into a prenuptial agreement, which spelled out a different procedure for dividing the car during a divorce.

How do you decide who gets the car during a divorce?

The most popular ways to determine car ownership shares are shown in the diagram:

If it is possible to peacefully agree on the division of vehicles, spouses usually independently determine who will get the car. Transport belongs to the category of indivisible property. Therefore, as a rule, the car owner is left with the issue of repaying the debt on the loan, as well as compensation to the second spouse for the corresponding part of the cost of the car in the form of money or other property. The simplest formula for calculating compensation for a spouse looks like this: (the estimated value of the car at the time of the divorce - the loan balance). For example, if the cost of the car is 2 million, and the loan balance is 1 million, then the second spouse should receive 500 thousand in compensation. At the same time, it is important to realistically assess the value of the car and involve a professional appraiser for this.

If there is a marriage contract , if its terms were not violated during the marriage, the car should go to the spouse who is indicated in the contract as the car owner after the divorce.

In the absence of a marriage contract and the desire to negotiate, the issue of car division is resolved through the court at the place of residence. In accordance with the RF IC (Article 39, paragraph 3), the common debts of the husband and wife are distributed between them when dividing property according to the shares awarded to them. In practice, this means the possibility of obtaining one of two key decisions in court:

The car will be awarded to one of the spouses with the condition that the second spouse pays his share. Compensation is calculated from the amount remaining after the car owner repays the loan. In this case, the court may appoint a professional appraiser to determine the value of the transport.
The former spouses will be required to repay the loan jointly in the future according to their respective shares in the ownership of the vehicle. This decision provides for the subsequent sale of the car and the division of funds equally.

How to resolve the issue of dividing a credit car during a divorce with the bank

The loan agreement usually states that the borrower is obliged to notify the bank of all important changes in his life. Such events include divorce, since it can significantly change the financial condition of a banking client.

In most cases, it is advisable to coordinate the issue of dividing a credit car with a former spouse with the bank and take into account its recommendations. The financial organization is interested in the absence of problem debt, therefore it has a negative attitude towards changes that may increase the risk of non-repayment.

In the event of a divorce, the borrower should consult with his loan specialist and, if necessary, reconsider the terms of the loan agreement (if provided for by the bank’s credit policy). To do this, you need to write a corresponding application at your bank branch.

When making a decision, the bank takes into account many factors (some of them are presented in the diagram).

Depending on the situation, upon receipt of the above application, the bank may offer the client several solution options, for example:

Leave everything unchanged (similar to the court decision described in paragraph 3.2 of this article).
Pay off the loan ahead of schedule, and then manage the transport at your own discretion.
If necessary, re-issue the loan to the actual car owner.
Refinance the client’s car loan on other terms.

Interaction with a bank is a multifaceted process. It includes many situations and communications of varying levels of complexity. In some cases, you can get away with simply notifying the bank about the divorce.

In others, you even have to look for ways to force your ex-spouse to repay the loan and stop making a monthly payment instead as a guarantor.

Regardless of the degree of complexity of the task, it is important to remember one thing: the bank is more likely to reconsider the terms of the loan if it is notified of a change in circumstances in advance.

In what cases is this practice of dividing a credit car applied?

The described options for dividing vehicles in terms of determining the future owner of the property and resolving the issue with the bank are relevant for all typical situations of dividing a credit car during a divorce, in particular:

when a car loan was taken out and has not yet been fully paid off;
when the car was purchased with funds received as a consumer loan;
when it is necessary to divide several cars between spouses, one of which was purchased on credit and there is still a debt on it, etc.

With a responsible approach to lending, the division of a credit car may not become a cause for anxiety and insomnia, but simply another stage on the path of life.

How is a car divided during a divorce if it is on credit?

Divorce is a complex process, accompanied by resolving not only moral but also property issues. It is often accompanied by the division of property acquired on credit.

During the marriage, the loan was issued for the needs of the family. If specific property has been acquired, it can be sold and the funds refunded to the other half, or it can be agreed upon who will get the subject of the dispute at a court hearing. But this will happen if the loan is paid in full.

Family law clearly defines the property rights and obligations of spouses. Property acquired during marriage is joint property and is subject to division in the event of divorce.

Division of a loan upon divorce is a fairly common phenomenon. Most take out a car loan for a short period of time.

But during this time, big changes can occur in the life of a family. In a divorce, the question arises: who will own the car, and who will continue to pay the bank money for it.

It is in these cases that everyone who has property acquired on credit and is about to get married or is already married should know their rights and imagine how the car will be divided.

Ways to divide a credit car during a divorce

How does the division of large property take place, including a car purchased with funds taken on credit?

Partitioning a car taken on credit is a fairly common procedure, but contains a large number of subtleties.

Family law clearly defines the property rights and obligations of spouses. Property acquired during marriage is joint property and is subject to division in the event of divorce.

The Family Code clearly stipulates the terms under which division of property is possible.

You can divide a purchased car immediately during the divorce process or within three years after it in one of the following ways:

Spouses can agree among themselves who will own the car, how the loan installments will be repaid and compensation will be paid to the spouse. But we must not forget that during the period of marriage, payments were made from common funds and the payment of the down payment was also made jointly.

How is a car divided during a divorce if it is on credit?

The division of joint property of spouses is often associated with many difficulties, especially if there is an encumbrance on it. With the development of consumer lending, this is often an outstanding debt to the bank. Let's look at how a loan is divided during a divorce.

The procedure in this case depends on the consent of the bank, which must be obtained by the interested parties. Further, the division is carried out on the grounds provided for by the Family Code: through the court or by mutual agreement.

Main points of property division

The property of spouses acquired during marriage using funds from the family budget is recognized as their common property. When dividing according to the law, it is divided between them in equal shares. This rule applies to:

Movable and immovable property;
Shares in business;
Cash bank deposits, securities.

But not only property is divided between spouses, but also common debts. If a husband and wife take out a bank loan and spend the proceeds on family needs, they are both required to be responsible for repaying their debt obligations. Therefore, if spouses intend to divide property for which the loan has not yet been repaid, they will have to additionally divide the remaining debt.

Before starting the division procedure in any way, the parties are obliged to inform the creditor and obtain his consent to carry it out. Without it, the bank can easily challenge all options for the distribution of loan property, including court decisions. This applies to cases where the dividable property is pledged to the bank. Those. It is important to distinguish between whether an object is purchased using a targeted loan or a simple one.

It is important to know! If a vehicle is purchased under a car loan agreement, it is pledged to the bank until the debt is fully repaid. This means that the owner will not be able to complete the entire range of legal transactions with him. The law prohibits the sale, gift, mortgage, etc. of such cars.

If a car is purchased with funds received through a simple loan, it is divided between the spouses on a general basis. And only the division of the loan should be agreed upon with the bank.

Options for dividing a car on loan

Considering that situations with the division of loan property are widespread, most banks initially provide for such a development of events. Therefore, possible options for action are included in the loan agreement. As a rule, they depend on the amount of debt on the loan at the time of division.

If the bank agrees, the loan car can be divided in the following ways:

The spouses continue to repay the loan together. Upon completion of payments, the joint car is divided on a common basis;
The spouses' credit account is divided into two, and then each party independently repays its part of the debt to the bank. Upon completion of payments, the car is divided in any convenient way;
The loaned car is put up for sale. The proceeds are transferred to the bank to repay the loan debt. The spouses divide the remaining funds among themselves in equal shares;
One of the spouses gives up his share in the car. Further, the debt to the bank is repaid only by the second spouse, who will become the owner of the car. He pays compensation to the refusing party, the amount of which is equal to half the amount already paid on the loan at the time of the divorce.

The division of a car purchased on credit, as well as other property, can be done in two ways: by agreement or by court.

Contractual method

If the spouses express unity of opinion regarding the further ownership of the car, it is easier for them to sign a division agreement. In this case, there is no need to file a claim in court. The agreement is drawn up in any form and includes the following information:

Basic passport data of the participating parties (full name, date of birth, residential address, identity card details).
Civil status of the parties (i.e. whether they are married or already divorced) with reference to marriage or divorce certificates.
Main characteristics of divisible property. If we are talking about a car, you will need to indicate: make, model, VIN, registration number, production date, color.
The cost of the car being divided. If it was purchased recently, was not involved in an accident and no improvements were made to it at the time of drawing up the document, it is enough to indicate the price indicated in the sales contract. In other cases, you will have to resort to the services of independent appraisers from the SRO, who will conduct an examination of the car and provide a certificate of its value;
An indication of the property regime that is established by the terms of the agreement;
Details of title documents for the car. If the car was purchased, you must provide information from the purchase and sale agreement. If it was purchased under a car loan agreement, additional details of the banking agreement should be indicated;
Details of the registration certificate for the car issued by the State Traffic Safety Inspectorate;
Signatures of the parties with transcript and date of compilation.

Important! After signing, the separation agreement must be certified by a notary. If the owner changes its terms, this fact is subject to registration with the traffic police, where the owner of the car will be provided with a new certificate.

Judicial method

Few people manage to divide a car during a divorce without the intervention of the courts. This is due to the high cost of cars. Most cars without mileage are valued at more than 1 million rubles.

Any interested party has the right to file a claim in court for division of the car. It is compiled according to the rules outlined in Art. 131 of the Code of Civil Procedure of the Russian Federation and contains the following information:

Information about the court and the name of the document.
Basic passport details of the plaintiff and defendant.
Statement of the essence of the claim.
Proposals for the car section.
Advance paynemt.
List of attached documents.
Date of compilation and signature.

A statement of claim is filed with the district (city) court of general jurisdiction at the defendant’s place of residence. If this is not possible (for example, if the defendant lives abroad), the application is submitted at the location of the main part of the divided property:

During a personal visit to the court office.
By sending an application with other documents by registered mail to the court's address.

It is not the defendant himself who can file a claim, but his representative. In this case, his basic passport information is indicated in the claim, plus a notarized power of attorney is issued in the name of the representative.

When dividing a loan car, you will need to attach copies of the following documents to your application:

Identity cards of the plaintiff and defendant;
Title documents for the car. Loan agreement with the bank;
Statement of the remaining balance on the loan. It should be issued at the bank. Plus, a payment schedule may be required if it is not specified in the loan agreement;
Registration certificate;
Payment document confirming payment of state duty;
Conclusion about the cost of the car;
Other documents, if, in the opinion of the plaintiff, they can help him win the case.

When determining the future owner of the car, the court will focus on the following factors:

The wishes of the owners themselves;
Applicants have a driver's license;
A vital necessity. For example, if a divorce from a mother leaves behind minor children who need to be transported to different educational institutions every morning, there is a high probability that she will be awarded the car;
Which of the applicants was involved in servicing the car.

Very often, when purchasing a car, a car is registered in the name of only one of the spouses. But it is legally considered common property. Therefore, the court will not take into account which spouse is included in the registration certificate.

Difficulties in dividing a loan car

The main problem faced by spouses who want to share a car is its sale without the knowledge of the other party. Such situations occur even when the loan for the car has not yet been repaid.

To avoid them, it is necessary to resort to interim measures, i.e. seize the car. This can be done by filing a claim in the same court in which the case of its division will be heard.

If the car has been sold, it is advisable to obtain advice from a practicing lawyer. Because in such a situation there are two options for action, and only a professional will be able to determine which of them can be implemented to their advantage:

File a claim to declare the alienation agreement illegal;
File a claim for division of proceeds from the sale of a car.

If we are talking about dividing an expensive car, you need to contact a lawyer at any stage of the process, at least to get advice. He will help you build tactics for protecting your interests and suggest possible options for the development of events.

You should share a car purchased under a car loan agreement only with the consent of the bank. If the creditor approves, the car is divided either on the basis of a personal agreement or by court. Until the loan is repaid, the vehicle remains pledged to the bank, even if the owner changes.

Car loan during divorce: how to divide debts and car

During the divorce process, many spouses are faced with the need to divide not only existing property, but also debts to the bank, including car loans. They are faced with the question of who will get the car on credit during a divorce, and who will be forced to repay the balance of the debt on the car loan.

How can a car loan be divided during a divorce?

By law, all jointly acquired property of spouses is considered their common property, unless otherwise specified in the marriage contract. A car is an indivisible property, so only one of the spouses can receive it, even if the other was a co-borrower on the loan.

Spouses who did not enter into a prenuptial agreement before marriage or when purchasing a car on credit, during a divorce, can divide the car by mutual consent or based on a court decision if the dispute cannot be resolved amicably.

The person who, by agreement, received a car on credit during a divorce for sole use is also responsible for paying off the debt on the loan.

As a rule, this role is played by the spouse in whose name the loan was issued.

The second spouse must receive compensation: half the amount already previously paid to the bank, or 50% of the difference between the appraised value of the car and the balance of the loan.

Spouses who cannot amicably agree on the division of a car on a loan during a divorce resolve this issue through the court.

In this case, the court can either transfer the car to one of the spouses, subject to the latter receiving compensation, or oblige the borrowers to subsequently repay the car loan jointly according to the shares of the car due to them.

Subsequently, after the loan is repaid, the car is sold, and the proceeds are divided between the co-borrowers.

Paying off a car loan after a divorce: the bank’s position

The borrower is obliged to notify the financial institution of a change in his marital status, since this fact directly affects his solvency. The bank is interested in ensuring that the loan continues to be repaid by the client for whom the car and the loan agreement are registered.

Since the car is pledged to a financial institution, it will definitely not be possible to transfer it to the second spouse without the consent of the bank. In this case, it is necessary to renew the loan agreement, and it is not a fact that the lender will be interested in such an outcome.

In general, the bank can offer several options for solving the problem of dividing the debt incurred due to the purchase of a car on credit in the event of a divorce:

The option that the financial institution as the mortgagee considers acceptable depends not only on the agreements of the former spouses, but also on their income and credit history, the amount of debt and the time remaining until the loan repayment period expires.

Division of a car during divorce 6 steps to solve the problem + statement of claim for division of a car between spouses

How to divide a car during a divorce between spouses? After divorce, various property is divided: real estate, land, jewelry, securities, and other property. As practice shows, difficulties often arise when dividing family vehicles.

After all, unlike an apartment, it is physically impossible to divide it into separate parts. However, you can find several ways out of any situation. The problem of how to divide a car if it is taken on credit will not go unnoticed.

In this article you will learn how you can decide the fate of your car. In particular, we will talk about whether dividing a car during a divorce is possible in principle. Get a step-by-step algorithm of actions, and also download an example of a claim. In addition, there will be an idea of whether the car is subject to division and how to do it correctly.

How to divide a car in case of divorce: settlement agreement or court

In this matter, there is no single recipe for all occasions.

After all, you need to take into account many factors:

when the car was purchased;
which spouse used it more;
at whose expense repairs and maintenance were carried out.

Of course, it is easier to divide transport peacefully. To do this, you can conclude a marriage contract in advance or sign an agreement on the division of property at the stage of divorce.

However, if there is a dispute regarding the car, then there is no other option but to go to court.

And here one of the following decisions can be made:

Awarding a car to one of the spouses, leaving other property to the other.
Transfer of the car to the husband (wife) with payment of counter compensation in a certain amount.

In practice, such a scheme is used when the car is sold by mutual agreement, and the proceeds are divided in half. In addition, people can agree that the car will remain with one of the spouses, and the second family member will buy another, cheaper car.

As a result, we can say that there are many options for determining the future fate of the car.

How is a car usually divided during a divorce?

Since it is physically practically impossible to divide a car into parts, the court may make different decisions. But before turning to the justice authorities, a number of difficulties may arise.

For example, another person drives a disputed car based on a power of attorney. Then you will have to cancel it. In addition, sometimes you have to put a vehicle on the wanted list.

Problems may also arise if the car is seized for the obligations of one of the spouses. It will need to be removed before sectioning.

If the car is registered to the husband

The main focus is on when the vehicle was registered. If the entire process took place before the official registration of the marriage, then it is understood that the car will remain the personal property of the spouse.

Otherwise, the wife may insist on providing the car to her or paying compensation for her share.

If the owner of the car is his wife

There is a similar situation here with regard to personal property.

However, if the spouse received a car before marriage, but the husband made significant investments in it (changed the engine, made tuning or other major repairs), then the court may also decide to divide the vehicle.

If there is a child (children), is this taken into account when dividing the “iron horse”

The Family Code of the Russian Federation states that if it is necessary to protect the interests of minor children, the court has the right to deviate from the principle of equality of shares in the common property of spouses. The same goes for a car.

Let's take this situation. After a divorce, the child remains with his mother, and she must take him to school every day. In this case, the car may remain behind her.

In a word, when dividing a car, by default it is understood that the car goes to one of the spouses, and the second receives half of its value. But in most cases, options are possible.

How to divide a car purchased on credit

Many people buy a car with borrowed funds during marriage. In this case, the car loan section causes problems for many people. If the issue is resolved in court, the bank is usually involved in the process as a third party.

Practice shows that a car purchased on credit can be divided in two ways. The first of them implies that the car will go to one of the spouses. In this case, the second family member will receive compensation taking into account loan payments. In this case, an expert assessment of the car is necessary.

In addition, the court may impose repayment of vehicle liabilities on both parties. The easiest way to solve this problem is to sell the car and distribute the proceeds in half.

How to divide a car after a divorce: step-by-step algorithm of actions

To decide the fate of the car in a divorce optimally for both parties, you will need a clearly created action plan. Typically, it consists of 6 main steps. Here are their contents.

1 step. Determining the cost of a car

If the car is to be divided in court, you will have to pay a state fee for filing a claim. Its value directly depends on the cost of transport, which will be determined by an independent expert at the time of submitting claims.

Step 2. Checking all documents

You need to make sure that the vehicle’s passport, as well as its registration certificate, are up to date. If some of the documents are not available, you should take care of obtaining their duplicates from the traffic police.

Step 3. Negotiating the fate of the car on a voluntary basis

To avoid lengthy litigation, the easiest way is for the spouses to sign a car agreement at a notary. It may include the provision of compensation in an agreed amount.

Step 4 Filing a claim in court

It is filed with the district court in the defendant’s area of residence. It should describe the fact of divorce, provide all the characteristics of the vehicle (model, year of manufacture, all license plates).

It is also necessary to justify why the plaintiff should get the car. Possible reasons could be the daily need to get to work, or the use of a car in business.

Step 5 Receiving a court decision after it has entered into legal force

We must wait for the moment when the court's decision finally enters into legal force. This will happen either after the deadline for filing an appeal has expired, or based on the results of its consideration.

Step 6 Re-registering a car in your name

If the car received after the divorce was registered in the name of the second spouse, you should pay a visit to the traffic police.

There you need to obtain a new car registration certificate, as well as make changes to the existing registration certificate. If desired, you can order other license plates, but this will require additional costs.

We have provided the main points that outline the procedure for dividing a car during a divorce. However, each case may require additional adjustments to be made to the entire process.