are automobiles community property between married couples?

Question

what happens to the car loan if one spouse dies

Answer 1

If the automobile was bought during the marriage or if both spouce's name are on the title or ownership papers then yes it is community property.

If it was bought before the marriage or after the divorce and both names not placed on the ownership then it is not community property.

Answer 2

Let's try and get some FACTUAL answers.

First, it matters NOT where you live. EVERY state has community property. It's just another name for marital property. Some states have the doctrine of Equitable Distribution and some don't call it that. They just call it marital property.

But, in the end, it's all the same. ALL property either purchased during the marriage or otherwise converted from separate property (that which is purchased before the marriage by one party) to marital property, is divided according to either statutory dictates or at the discretion of the court based on allowable statutory requirements.

To tell specifically how your property would be split you need to ask the specific judge hearing your case.

What matters is when the purchase was made or when it was converted. If the car is awarded to one party over the other and not ordered sold and the debt satisfied, then the party gaining ownership will be ordered to refinance the asset. If they do not, BOTH parties still are liable for the debt.

The lien holder is not a party to your divorce and could care less. THerefore, it is important to stay on top of the situation and if the car is not refinanced and the non-owner's name removed from the debt, it's time to file a Motion to show cause for contempt.

The issue of property is very complicated and not often answered correctly here. For example, if the car was his before the marriage and the two of you needed money and went to a title loan company, and that debt has not been paid off when you divorced, then the debt becomes a lien against the value of the auto at the time it was made. That gives both parties an ownership interest in the car and therefore, the auto was converted during the marriage.

The ownership interest of a pre-marital asset can only be converted by agreement (transferring the title to both names) or refinancing to convert the asset to both names. In this instance, your ownership in the asset begins at the value after conversion. Therefore, if the car was worth 1,000 beore the marriage and it was refinanced after putting a new $5,000 engine into it, your ownership interest in the car is the value of the car after the refinance- $1,000 / 2.

See what I mean?

Answer 3

Community property is a matter of where you live--there are only about thirteen community property states.

There is separate property and marital property. Typically, the things you buy together (after you are married) are marital property and the things you already had, or things given to you by others after you get married are separate property.

Separate property can become marital property if it is used more by one spouse or something like that.

When a person dies, their debt and property are inheritted according to their will. If there is no will, the surviving spouse gets a major percentage (if not all) of the estate, according to state statute.

If spouses are co-signers on the car loan, then the loan is automatically the responsibility of the surviving spouse.

Answer 4

The other spouse has to keep making the payments or sell the car. Or if you bought the insurance that if you die it is paid in full then it would be paid for.

Answer 5

If you both have your name on the title either as signer or co-signer. But some states consider community property anything bought DURING the marriage....no title needed.

Answer 6

if both names are on the title,it's community property. if one dies the other is responsible for the debt.

Answer 7

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Answer 8

Yes the other spouse has to make the payments...

Answer 9

if bought during the marriage, doesnt matter if your name is on it or not.. also, if you have the insurance, if one dies, or one becomes disabled, the loan would be paid in full.