Texas is a community property state, which means that all joint assets are generally divided on a 50/50 basis in a final divorce settlement. However, it is obvious that you won’t literally get half of the family car after your marriage officially comes to an end. Let’s take a look at the various ways that ownership of this asset may be determined.
Is there positive equity in the vehicle?
If there is positive equity in a family car, truck or van, a judge may order you to sell it. The proceeds from the sale would then be split equally between yourself and your former spouse. Alternatively, you may be able to take ownership of the vehicle by paying them what they would receive if the car were sold.
You could trade the car for another asset
Let’s say that your former partner has an attachment to a vehicle that you have an ownership interest in. It may be possible to waive your right to that asset for something that you want more such as your favorite recliner, an art collection, or full ownership of a brokerage account.
Who needs the car more?
Generally speaking, a custodial parent will need a vehicle more than a noncustodial parent. Furthermore, your spouse may have a greater need for reliable transportation if he or she works at a grocery store while you work from home. While you may not be obligated to give up the car just because someone else needs it more, it may be something to consider if you want to settle your divorce in an amicable fashion.