If you are getting divorced and drive a leased car, you should know that a leased car is not a marital asset. The leasing company is the owner of the car. Essentially, you are “renting” the car, and your monthly payments are analogous to paying rent on an apartment.
Since you do not own the car, a leased vehicle is not a marital asset. However, for your divorce, what does need to be determined is who will take over the vehicle after the divorce and who will make the lease payments.
If the lease is in your spouse’s name, and your spouse continues to drive that leased car, then, you probably have nothing to worry about or do. Your spouse will be responsible for the lease and you will not have any obligation to pay the lease.
If the lease is in your spouse’s name but you want to take over the lease, you will need to contact the leasing company to change the lease agreement. The leasing company is under no obligation to modify the lease agreement.
If the leasing company will not allow you to modify the car lease agreement, yet, you still want to drive the leased car, then, there are potential alternatives.
One alternative is for you to make the lease payments and you would also indemnify your spouse (soon to be ex-spouse) for those payments. An indemnification means that if you do not make the payments, your spouse can take you to court to force you to make those payments.
Another alternative is to have your spouse make the payments, but, you either give a lump sum payment to your spouse for the value of those payments, or you make a monthly payment to your spouse.
The Badanes Law Office, P.C. has helped numerous clients in their divorce. David Badanes, Esq. will make sure you understand your options and make an informed choice. If you are thinking of getting divorced, contact the Badanes Law Office today! Call 631-239-1702 or email at firstname.lastname@example.org.
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