Chicago Divorce Lawyer Russell D. Knight Breaks Down Vehicle Division in Illinois Divorces

Chicago divorce lawyer Russell D. Knight (https://rdklegal.com/cars-trucks-and-motorcycles-in-an-illinois-divorce/) provides clarity on what happens to vehicles such as cars, trucks, and motorcycles during the divorce process in Illinois. In his blog post, "Cars, Trucks and Motorcycles In An Illinois Divorce," Knight outlines how Illinois courts handle ownership, valuation, debt, and title transfers related to automobiles when couples dissolve their marriage.

For those navigating a divorce in Illinois, understanding how property like automobiles is treated can be vital. According to Chicago divorce lawyer Russell D. Knight, determining whether a vehicle is considered marital or non-marital property depends largely on the timing of the purchase. "If a car, truck or motorcycle was purchased prior to the marriage, that automobile will stay with the person who purchased the automobile after the couple divorces," Knight explains. On the other hand, any vehicle purchased during the marriage is presumed to be marital property, regardless of whether the couple is already separated or even has a divorce pending.

Chicago divorce lawyer Russell D. Knight emphasizes that Illinois courts do not physically split automobiles. Instead, each party typically retains possession of the vehicle they already use. One significant reason for this is the secured debt commonly tied to vehicles. Knight explains that most cars have loans attached, and those loans remain with the person responsible. "So, if a party to a divorce is willing to be responsible for an automobile loan, they always get to keep the automobile attached to that loan," he notes. This arrangement avoids disputes over vehicles that often carry negative equity due to loan balances exceeding the vehicle's market value.

Determining a car's value can also be problematic in an Illinois divorce. Knight points out that while parties technically can argue over automobile values in court, doing so rarely happens. "The value of a car is always too difficult to determine or depressingly low," he writes, citing discrepancies between trade-in, sale, and condition-based values, even within the same model year. Rather than waste time and legal resources on these evaluations, most divorcing couples in Illinois opt to retain their respective cars without trying to equalize the value through other asset exchanges.

Knight also addresses situations where one party keeps a vehicle that is still under both names. In these cases, refinancing or paying off the loan is necessary to remove a party's name from the obligation. However, Knight acknowledges the difficulty of such arrangements, noting, "Refinancing an automobile in one divorced party's name is apparently possible, but I have never heard of it being done in my 14+ years as a divorce attorney in Chicago, Illinois."

To address this, Illinois divorce lawyers typically include protective language in the Marital Settlement Agreement. The agreement obligates the person retaining the vehicle to make timely loan payments, shielding the other party from liability. If the loan payments are not made, the harmed party can return to court to seek remedies, including reimbursement for attorney's fees and other sanctions.

Knight also details the process for transferring a vehicle title after divorce. If the vehicle is already registered in one person's name and that person retains it, no further action is necessary. However, if a vehicle changes hands through the divorce, the title must be transferred through the Illinois Secretary of State's office. He notes that no transaction tax is typically imposed when transferring ownership as part of a divorce decree.

Beyond cars, trucks, and motorcycles, Knight confirms that similar rules apply to boats, trailers, ATVs, and other mobile equipment. Mobile homes may involve added tax issues, but the general property division principles remain consistent.

Car insurance is another critical topic in Illinois divorces involving vehicles. According to Knight, every vehicle must remain insured throughout the divorce process. Failing to maintain insurance can lead to legal issues and risk financial loss for both parties. If one spouse cancels coverage, the other may need to request that the court reinstate it to preserve the marital estate.

During the divorce proceedings, determining who can use which vehicle is also important. Knight explains that a judge can order a temporary arrangement to maintain access for both parties, especially if a vehicle is needed for essential tasks like commuting or child transportation.

On the topic of purchasing a new vehicle during divorce, Knight makes it clear that such a purchase is allowed. Still, large expenditures may affect asset division, especially if substantial marital funds are used for the down payment.

Addressing whether teenagers' driving expenses qualify as extracurricular activities under Illinois law, Knight expresses doubt. He references the case Sovey v. Sovey, which rejected the idea of treating automobile use as a credit toward parental contributions for college, reinforcing that cars are not typically categorized under extracurricular expenses.

Those facing divorce in Illinois may find that vehicle ownership and debt are more straightforward to resolve than anticipated. Rather than adding friction to the divorce process, most couples opt for practical solutions where each keeps their car and assumes responsibility for related obligations.

Russell D. Knight offers guidance for couples seeking to navigate these matters with clarity and practicality. "Each person keeps their car and the parties to an Illinois divorce do not try to equalize the values of those vehicles through the exchange of other property," he states, reflecting the standard approach for many Illinois divorces.

This post offers insight into common divorce scenarios involving automobiles and is a helpful resource for those preparing for or going through a divorce in the Chicago area.

For legal advice or guidance on how property such as cars, trucks, or motorcycles may be handled in a divorce, readers are encouraged to consult directly with the Law Office of Russell D. Knight.

About Law Office of Russell D. Knight:

The Law Office of Russell D. Knight focuses exclusively on family law and divorce cases in the Chicago area. Led by attorney Russell D. Knight, the firm aims to provide thorough and practical information for those navigating the divorce process in Illinois.

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