Negotiations Regarding Vehicles During Divorce Mediation in Atlanta

Aside from family homes, vehicles represent valuable assets during property division in Georgia. You might rely on your vehicle for work, family commitments, or other needs. The prospect of losing your vehicle could be quite shocking, and you might wonder what will happen to your car during a divorce. Fortunately, you don’t need to rely on a judge to settle this issue for you. During divorce mediation in Atlanta, you can negotiate with your ex about what should happen to the vehicle.

Do You Even Need to Worry About the Vehicle During Divorce?

You only need to worry about a vehicle if it falls into the category of “marital property” during divorce. These are assets you purchased during your marriage. If you purchased the vehicle before you got married, then it should be considered your separate property and remain yours after the divorce.

If you received the car as a gift from a third party (not your ex) at any point in time, it should also be considered separate property and remain yours after the divorce. If you inherited the vehicle from a grandparent or any other person, it also remains yours after the divorce.

What if There’s Only One Vehicle During Divorce?

If there is only one vehicle and both spouses want to keep it, mediation can address this issue in various ways. Perhaps the most obvious option is to sell the vehicle, split the proceeds, and have each spouse purchase their own vehicle using money from the sale proceeds. Obviously, this may represent a significant downgrade for both spouses. However, this approach is simple and effective.

Another option might be a cash buyout. If one spouse has a particularly strong connection to their vehicle, this might be more attractive. For example, one spouse might see the car as their pride and joy. Perhaps they drive the vehicle more often. Maybe it’s a one-of-a-kind vintage vehicle. In this situation, the spouse who wants to keep the vehicle can provide their ex with a cash buyout. In other words, they’ll hand over 50% of the vehicle’s value in cash. The recipient of this buyout can then purchase their own vehicle.

A similar option is an asset trade. With this approach, the spouse who wants to keep the vehicle provides their ex with another asset worth approximately 50% of the vehicle’s value. This might be jewelry, stocks, furniture, or anything else of value.

What if There Are Multiple Vehicles in a Divorce?

If there are multiple vehicles, property division might be easier. Each spouse can simply take their own vehicle. If there is an odd number of vehicles, asset trades and buyouts can ensure a fair split. That being said, spouses should consider the cost of owning, insuring, and maintaining multiple vehicles. This may not be the most intelligent decision, as divorce can cause financial pressures. It may make more sense to have only one vehicle immediately after the divorce.

Can a Divorce Mediation Lawyer in Atlanta Help Me? 

A divorce mediation lawyer in Atlanta may be able to help if you’re not sure what will happen to your vehicle. With guidance from one of these attorneys, you may be able to keep hold of your vehicle. Alternatively, you might agree on a deal that provides each spouse with enough money to purchase a vehicle. Each situation is different, so consider discussing your unique circumstances with Kaye, Lembeck, Hitt & French today.

Sources:

 georgia.gov/file-divorce

georgiacourts.gov/a2j/self-help-resources/family-law/divorce-forms/