Division of property in a divorce can be a very contentious and complicated matter. A Ventura divorce attorney can explain how courts look at leased vehicles in a divorce property split. When dividing property in a divorce, consider the couple’s total assets and liabilities.
Only assets and liabilities in the marital estate are subject to division. When it comes to leased vehicles, your Ventura divorce lawyer can help analyze whether the car in question is part of the marital estate. The answer turns on whether the lease is what’s known as a “lease purchase” or “true lease.” Generally, only lease purchases are part of the marital estate and subject to a split.
True Leases
Your Ventura divorce attorney will look at whether the lease payments were made to simply use the vehicle, not buy it outright. If the final lease payment or buyout is large ($5,000 or more), you likely have a true lease which is excluded from the marital estate.
Lease Purchases
Conversely, your Ventura divorce lawyer will look at whether the lease payments result in a title transfer for a minimal amount at the end of the lease. If the last payment is small (a few dollars), you likely have a lease purchase that is an asset of the couple and subject to split. Let your Ventura divorce attorney carefully review your lease contract to make sure.
If you are divorcing, you will need to make a plan for division of assets and liabilities. A Ventura divorce attorney can advise you more fully about handling property during a divorce. Contact Gary Mitchell now at 888-452-1846.
