Equity in Car

[furball]

What is the name of your state (only U.S. law)? CA

Before getting married, I bought a car with an auto loan. I got married a couple years later, and unfortunately, recently we decided to get a divorce. I am still paying off the loan now though. My question is, can my spouse claim any equity in the car since community funds were used to pay for the loan while we were married? If so, how is that calculated.

 

[ecmst12]

It's possible, but generally cars aren't worth arguing over - if you still owe money, chances are any equity is minimal if you have it at all. It takes a long time before you owe less then the car is worth. If she has a car and you have a car, usually that's how you will split things up.

 

[tranquility]

Yes, he can claim equity for the principal paid down during the marriage. But, such things usually come out in the wash in that the judge will not do some mechanical iteration of community property rules to calculate a result. He will try to balance the fairness of all the matters and try to find a solution that is legally correct and reasonably fair. With shark attorneys who want to build up huge billings and litigate every jot and tittle, there can be a more mathematical result.