What Happens to Your Car in a Divorce

How a car gets divided in divorce

A car owned during marriage is usually treated as marital property, which means South Carolina law requires it to be divided fairly between you and your spouse — not necessarily equally, but in a way the court considers just. The person whose name is on the title does not automatically keep it. What matters is when you bought it, whose money paid for it, and whether both of you used it during the marriage.

The court can order one spouse to keep the car and the other to keep different assets of equal value, or order the car sold and the money split. If you still owe money on the car, the debt is also divided — meaning one of you typically takes both the title and the loan.

The process starts in your divorce case itself. You and your spouse can agree on who keeps the car, or the judge will decide if you cannot agree. This happens before the divorce is final, not after.

Key Takeaways

• A car bought during marriage is marital property even if only one spouse's name is on the title, and the court will divide it as part of the divorce settlement.
• You can agree with your spouse who keeps the car, or a judge will decide based on the value of other assets each person receives.
• If the car has a loan, whoever keeps the car must also take responsibility for the debt, and the title must be transferred to their name alone.
• After the divorce is final, you must update the title and registration with the South Carolina Department of Motor Vehicles to reflect the new owner.
• If your ex-spouse's name remains on the title or loan after divorce, you have limited legal options to remove it without their cooperation.

Transferring the title after the divorce is final

Once the divorce judgment is signed and the judge has ordered who keeps the car, you must go to the South Carolina Department of Motor Vehicles to transfer the title. Bring the divorce judgment, the current title, and a bill of sale signed by both of you (or just the person giving up the car). The DMV will issue a new title in the new owner's name only.

If there is still a loan on the car, the lender's name will appear on the title. The person keeping the car must refinance the loan into their name alone, or the original borrower remains legally responsible even though they no longer own it. Contact the lender to start this process — it usually takes one to two weeks. Do not delay: as long as both names are on the loan, both of you can be pursued for the debt.

Update your vehicle registration at the same time. Registration is separate from the title and must also show only the new owner's name. The DMV can do both in one visit.

What to do if your ex-spouse's name is still on the title or loan

If the divorce is final but your ex-spouse's name remains on the title or loan, you cannot simply remove it yourself. The lender or the DMV will not change the document without the other person's signature or a court order.

If your ex-spouse refuses to sign the paperwork, you have two options. First, ask your divorce attorney to file a motion to enforce the divorce judgment — the judge can order your ex-spouse to cooperate and sign the documents. Second, if the car is paid off and only the title is the problem, some people refinance the car (taking out a new loan to pay off the old one) in their name alone, which removes the ex-spouse from the loan but not the title. The title issue then requires the motion to enforce.

If you cannot afford to refinance and your ex-spouse will not cooperate, contact your divorce attorney. Leaving both names on the loan is risky: your ex-spouse can damage your credit if they stop paying, and you remain liable for the full debt.

Cars owned before marriage or inherited

A car you owned before the marriage, or one you inherited during the marriage, is usually separate property and belongs to you alone — the court will not divide it. However, if you used marital money to pay off the loan, make major repairs, or significantly improve the car, the court may award your spouse a portion of that value.

Bring documentation to your divorce case showing when you bought the car and whose money has gone into it since the marriage began. If the car is titled only in your name and you can prove it is separate property, the title does not need to change.

If you cannot agree on who keeps the car

When spouses disagree about the car, the judge considers its current value, any loan balance, and what other assets each person is receiving. The judge may also consider who needs the car more — for work, for childcare, or for transportation — though this is not the main factor.

Get the car appraised before your court date. You can use Kelley Blue Book, NADA Guides, or a local mechanic's estimate. Bring this to your attorney or to court. If the car is worth $8,000 and you owe $3,000, the net value is $5,000. The judge might award the car to one spouse and give the other spouse $5,000 in other assets, or order the car sold and the money split.

Handling the loan if you keep the car

If the divorce judgment awards you the car but your ex-spouse's name is on the loan, you must refinance into your name alone before or immediately after the divorce is final. The lender will not remove your ex-spouse's name without a new loan application in your name only.

Contact your bank or the lender and ask about refinancing. You will need to show income, credit history, and proof that you own the car (the divorce judgment and the current title). Refinancing usually takes one to three weeks. Your credit score affects the interest rate you receive.

If you cannot refinance because your credit is poor or your income is too low, you have a problem: you own the car but cannot legally separate yourself from your ex-spouse's loan obligation. Discuss this with your divorce attorney before the judgment is final — you may need to ask the judge to order the car sold instead, or to give you time to refinance before the divorce becomes final.

Insurance and registration in your name

Once the title is in your name, you must get your own car insurance policy. Your ex-spouse's policy will not cover you, and driving without insurance is illegal in South Carolina. Contact an insurance company and provide the new title and registration.

If your ex-spouse is still on the title, their insurance company may refuse to insure the car in your name alone. This is another reason to prioritize getting the title changed. Until it is changed, you may be stuck using your ex-spouse's insurance or having no coverage at all.

Frequently Asked Questions

Can I keep the car if my name is not on the title?

Yes. The title does not determine who owns the car in a divorce — the judge does. If the court awards you the car, you have the right to it even if your spouse's name is on the title. You must then transfer the title to your name through the DMV.

What if we both want to keep the same car?

Only one person can own it. The judge will award it to one of you and give the other person assets of similar value. If you both insist on keeping it, the judge may order it sold and the money split instead.

Do I have to pay off the car loan before the divorce is final?

No. The divorce judgment can assign the loan to one spouse, meaning that person becomes responsible for paying it. However, if both names are on the loan, both of you remain legally liable to the lender even after divorce, so refinancing into one name is strongly recommended.

What if the car is worth less than what we owe on it?

The judge will still assign it to one person, who then takes on the debt. That person may ask for other assets to offset the negative value, or the judge may order the car sold to minimize the loss.

Can I remove my ex-spouse's name from the title after the divorce is final?

Not without their signature or a court order. If they refuse to sign, file a motion to enforce the divorce judgment with your attorney. The judge can order them to cooperate.