Divorce proceedings can be complicated, especially when it comes to dividing assets, including vehicles. While each state has its own laws regarding asset division, it’s crucial to understand the specifics of New Mexico’s laws to ensure a fair distribution. In this article, we’ll discuss how vehicles are divided in a New Mexico divorce.
Community Property State
New Mexico is a community property state. This means that any assets acquired by a couple during their marriage are considered community property, which is owned equally by both spouses. Unless a prenuptial agreement has been signed, any assets accumulated during the marriage, including vehicles, are subject to being divided equally during a divorce.
Separate Property
It’s worth mentioning that some vehicles may be considered separate property, which means that they are owned by one spouse and not subject to division during a divorce. In New Mexico, separate property refers to assets acquired before the marriage or received as an inheritance or gift during the marriage. If a vehicle falls under the category of separate property, the spouse who owns it will be able to keep it.
Valuing Vehicles
Determining the value of vehicles can be tricky, as their worth can fluctuate depending on condition, age, and market demand. Generally, vehicles’ value is determined using current market value or trade-in value from reputable sources like Kelley Blue Book or NADA. Additionally, if the vehicle has any outstanding loans or leases, those will be taken into consideration when determining its worth.
Dividing Vehicles
Once the value of the vehicles has been determined, they can be divided using different methods. If one spouse wants to keep a vehicle, they can offset its value by giving the other spouse an asset of similar value. For example, if one spouse keeps a car worth $10,000, the other spouse may receive $10,000 worth of other assets to compensate for the loss.
Another method for dividing vehicles is to physically divide them. Each spouse would receive one or more of the cars based on their value. If an odd number of vehicles are involved, one spouse may receive a slightly larger portion of assets to keep everything equal.
Final Thoughts
Dividing vehicles during a divorce in New Mexico can be stressful and complicated. It’s crucial to consult with a family law attorney to ensure that you understand your legal options and rights. The attorney can guide you through the process, ensuring that you meet the legal requirements and achieve a fair distribution of assets. While it may be tempting to approach a divorce without legal assistance, it’s recommended to have legal representation to ensure that your rights are protected during the process.