Part of the prep work you will have to do for your divorce is create an itemized list of all your assets and debts. An asset is something that holds a value, such as a home or a car.
Is a Vehicle an Asset?
A vehicle that you own outright is generally an asset. However, a financed vehicle could be considered a debt instead of an asset. The fair market value of your vehicle and the amount you owe on it will determine whether it is an asset or a debt.
Figuring out how to divide your vehicles in a divorce is a little trickier than splitting cash accounts or household goods. When the goal is an equitable distribution, it’s crucial you have an accurate value. A financed vehicle can be considered an asset but only if its value is greater than the amount you owe on it. For example, if you have a car that is worth $10,000, and you owe $5,000 on it, the value of the asset as a whole would be $5,000. Even with this value, it is important to remember that a car is a depreciating asset. It requires maintenance, licensing, repair work, and insurance to be useful to you. The amount you could get for it if you sold it does not reflect the real cost of owning a car. This is another reason why cars can be difficult assets to divide in a divorce.
If your vehicle were an asset in your divorce, the worth would be the Kelly Blue Book value less the amount you owe on it. If you and your spouse are striving for a fair division of your assets, it is important you accurately assess the value of your vehicles. If your spouse takes the car with the greater asset value, you taking additional assets can offset this. Discuss your options for fairly dividing your assets with an experienced Massachusetts divorce mediator if you have any questions. Not all assets have a cut and dry value, and many kinds of assets cannot be easily divided. Dividing your assets may take some research and creative problem solving if you are to achieve a truly fair outcome.
Do you have questions about identifying and dividing your assets in the divorce? Mediation Advantage Services can help. Experienced in divorce mediation, Law Office of Polly Tatum can help you and your spouse successfully negotiate a separation agreement that preserves your assets and divides them fairly. Based in historic Worcester with a satellite office in Northboro, MA, our firm serves all cities and towns throughout Massachusetts and Worcester County including, Auburn, Paxton, Leicester, Sutton, Grafton, Shrewsbury, Westboro, Northboro, Southboro, Holden, Sterling, Princeton, Worcester, Charlton, Millbury, Dudley, Spencer, Brookfield, Sudbury, Natick, Framingham, Hopkinton, Milford, Blackstone, Leominster, Fitchburg, Acton, Jefferson, Barre, Oakham, Cambridge, Newton, Marlboro, Lancaster, Bolton, and Hudson. Call our office at (508) 466-4734, fill out our online form, or email us at [email protected] today to schedule your Complimentary Mediation Success Planning Session. You can also sign up for our eNewsletter or download our free e-book for more information regarding divorce in Massachusetts.