Rights to a Car Purchased Before Marriage but Paid Off with Marital Assets
My question involves a marriage in the state of: New Jersey
How does equitable distribution work in the following case:
I bought a car in 2006, got married in 2008. The car's original value was 60% paid off at that point. So the remaining 40% of the original value was paid for with marital assets.
Wife bought a car in 2011 and it is completely paid off through marital assets.
Is it reasonable to claim that 60% of my car is not a marital asset? Is this common or are there issues with co-mingling?
Re: Vehicle Bought an Partially Paid for Before Marriage
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892Elm
My question involves a marriage in the state of: New Jersey
How does equitable distribution work in the following case:
I bought a car in 2006, got married in 2008. The car's original value was 60% paid off at that point. So the remaining 40% of the original value was paid for with marital assets.
Wife bought a car in 2011 and it is completely paid off through marital assets.
Is it reasonable to claim that 60% of my car is not a marital asset? Is this common or are there issues with co-mingling?
Does your 8-9 year old car even have enough value to fight over what percentage of it is a marital asset?
Re: Vehicle Bought an Partially Paid for Before Marriage
It doesn't matter at this point. Both cars are paid off. You take your car and she takes hers. If you try to get that detailed about equitable distributions it's going to be a very long divorce.
Re: Rights to a Car Purchased Before Marriage but Paid Off with Marital Assets
It's not a matter of the vehicle being partially separate property because part of the loan was paid before the marriage. The car is either separate property or marital property. You can argue that it was separate property based upon your purchasing it prior to the marriage and, if it is in fact the case, the fact that you never added your spouse to the title. Your spouse can argue that it became part of the marital estate by virtue of an implied agreement based upon the six years during which it was used as a family vehicle, the use of marital assets to make payments, pay for service and repair, pay for insurance, and the like. Unless there's something very special about the car, as budwad indicates, this type of argument can end up costing you more in attorney fees than the car is worth.
Re: Rights to a Car Purchased Before Marriage but Paid Off with Marital Assets
Thanks, Mr. Knowitall. You basically have the same idea my attorney presented - I just wanted a second opinion. I can see the issue both ways so I just wanted to make sure that I wasn't giving away something that I have clear rights to. @Ilworking, yet, the value would have been worth bringing up if it was going to get me somewhere. Nonetheless, the vehicle the spouse is retaining is worth twice as much at this point so I expect that will be considered in our distributions.
Re: Rights to a Car Purchased Before Marriage but Paid Off with Marital Assets
Let me give you one little piece of practical advice. Like I said earlier, if you start to put dollar values on everything you own or acquired during the marriage it is going to be a long and expensive divorce. That doesn't mean that if you inherited property or assets during your marriage you should give them away but when it comes to possessions like cars or furniture or other chattel, forget what it is worth. Just divide it up get through the divorce and move on.